Ad hoc Press Release, 15.03.2022
Ad hoc press release in accordance with Art. 53 of the Listing Rules – Vetropack increases net sales by 23.2% in 2021
Bülach, 15 March 2022 – Consolidated net sales at Vetropack Group increased by 23.2% to CHF 816.5 million in 2021 (2020: CHF 662.6 million). The subsidiary the Group acquired in the Republic of Moldova in December 2020 accounted for 6.9% of the increase in net sales. The Group’s consolidated EBIT rose by 7.2% to CHF 81.6 million (2020: CHF 76.1 million)
The year 2021 was characterised by high demand for glass packaging throughout Europe. Vetropack Group once again strengthened its market position and increased its production capacity during the year under review. In addition, Vetropack’s markets and the Group’s production operations were barely affected by the global pandemic. Vetropack Group companies sold most of their additional capacities in their domestic markets, and the Group as a whole generated consolidated net sales of CHF 816.5 million. This record corresponds to an increase of 23.2% from the previous year (2020: CHF 662.6 million). The subsidiary the Group acquired in the Republic of Moldova in December 2020 accounted for 6.9% of the increase in net sales.
Financial key figures for 2021:
• Net sales: CHF 816.5 million (2020: CHF 662.6 million)
• EBIT: CHF 81.6 million (2020: CHF 76.1 million)
• EBIT margin: 10.0% (2020: 11.5%)
• Consolidated profit: CHF 63.8 million (2020: CHF 81.2 million)
• Net liquidity: CHF 88.7 million (2020: CHF 59.7 million)
• Cash flow: CHF 154.1 million (2020: CHF 141.2 million)
• Cash flow margin: 18.9% (2020: 21.3%)
• Equity ratio: 73.9% (2020: 77.0%)
Vetropack Group achieved consolidated EBIT of CHF 81.6 million in 2021, an increase of 7.2% from the previous year (2020: CHF 76.1 million). The extraordinarily high increases in prices for energy, raw materials, packaging, transport, etc. that began in the second half of 2021 had an adverse impact on the Group. These short-term massive increases in production costs could only be passed onto the market in part. As a result, the Group’s EBIT margin declined from 11.5% in 2020 to 10.0% in 2021.
The consolidated annual profit amounted to CHF 63.8 million (2020: CHF 81.2 million, boosted by around CHF 9.1 million from the sale of properties not required for operations) and the profit margin reached 7.8% (2020: 12.3%). The Swiss franc was very strong at the end of 2021, which led to a net foreign exchange loss of CHF 5.8 million on euro-denominated credit balances at Vetropack Group. At the same time, the good result recorded in the previous year had in part been due to income amounting to approximately CHF 9.1 million that resulted from the sale of properties not required for operations.
Cash flow increased to CHF 154.1 million in the year under review (2020: CHF 141.2 million). This figure corresponds to 18.9% of net revenue (2020: 21.3%). Vetropack Group invested CHF 119.2 million net in tangible and intangible assets in 2021 (2020: CHF 73.7 million). The main investment here involved the new glass works in Boffalora sopra Ticino, Italy, construction of which began with a groundbreaking ceremony on 25 October 2021. The Group also invested in the expansion of glass recycling facilities in its plants in the Czech Republic and Austria. Cash flow from operating activities reached CHF 182.7 million in the year under review (2020: CHF 136.9 million). This corresponds to 22.4% of net revenue. The Group’s net liquidity increased to CHF 88.7 million (2020: CHF 59.7 million).
Shareholders’ equity amounted to CHF 774.5 million (2020: CHF 763.6 million). The equity ratio fell to 73.9% (2020: 77.0%).
At the end of the reporting year, Vetropack Group employed a workforce of 3896 people (31 December 2020: 3882 people).
Outlook for the 2022 fiscal year
Glass packaging remains very popular, which is why demand for container glass continues to rise throughout Europe.
Vetropack Group has continuously increased its production capacity over the last few years in order to meet the higher demand for its products and further strengthen its market position.
Over the last few months, however, the cost of energy, raw materials, packaging, transport, etc. has increased dramatically. As inflation rises, personnel expenses will increase as well. All of these rising costs will make it necessary for Vetropack Group to make further adjustments to its prices in the current year. In addition, as a result of the military escalation that has led to war in Ukraine, and in order to protect our employees, Vetropack Group shut down its glass works in Gostomel (near Kyiv) on 24 February 2022.
Given the rapid and unpredictable developments at the moment, it is not possible for us at this time to completely quantify the effect this armed conflict will have on the Group in the 2022 fiscal year. There will be no production at our glass works in Ukraine for the rest of the year. This will lead to a reduction in the Group’s net revenue of around 10%. The expected growth in revenue will therefore be cancelled out by events in Ukraine and it will not be possible to achieve the consolidated operating result and net profit recorded in 2021.
Vetropack Holding Ltd
The Board of Directors will propose to the Annual General Assembly the payment of a gross dividend of CHF 1.30 (2020: CHF 1.30) per class A registered share and CHF 0.26 (2020: CHF 0.26) per class B registered share.
The Annual General Assembly of Vetropack Holding Ltd will take place on Wednesday 20 April 2022. Shareholders cannot attend in person.
The 2021 report is available exclusively online with a download option: www.vetropack.com/en/vetropack/investor-relations/financial-reports/