Banner
Filtraglass
Falorni Tech Glass Melting Technology

Vetropack: demand and turnover on the increase – margin under pressure

During the first six month of 2012, the Vetropack Group generated consolidated gross turnover of CHF 308.6 million, with slight growth. No changes are expected to be seen in the market situation in the second half of the year, while high energy and maintenance costs mean that the EBIT margin should remain at around the same level at the end of the year as in the first half.

The Vetropack Group generated consolidated gross turnover of CHF 308.6 million during the first half of 2012 (first half of 2011: CHF 306.7 million). Consolidated EBIT totalled CHF 32.5 million (first half of 2011: CHF 42.8 million). The sale of an area not required for operations boosted consolidated semi-annual profit by 126.1% to CHF 58,1 million (first half of 2011: CHF 25.7 million). The cash flow margin amounted to 19.0% (first half of 2011: 21.0%) of gross turnover. All plants were at full capacity.
In a difficult economic environment, the Vetropack Group displayed slight growth and generated consolidated gross turnover of CHF 308.6 million (first half year of 2011: CHF 306.7 million) during the first half of the current financial year, a 0.6% increase year-on-year. After currency adjustments, however, the increase was a pleasing 4.5%. Since 2011, the demand for glass packaging has risen slightly in all countries in which the Vetropack Group operates with the exception of Switzerland. The European currency crisis is continuing to dominate the macroeconomic environment. Uncertainty and fears of a downturn are dampening the consumer sentiment.
During the first six months, the Vetropack Group has expanded its domestic market sales volume without neglecting its strategically important export markets. 62.4% of sales (first half of 2011: 58.6%) were to domestic markets. The overall sales volume was 2.21 billion units of glass packaging (first half of 2011: 2.16 billion units).
Higher energy and maintenance costs cut consolidated EBIT by 24.1% to CHF 32.5 million (first half of 2011: CHF 42.8 million). The EBIT margin therefore decreased from 14.0% in the previous year to 10.5% of gross turnover.
Consolidated semi-annual profit was up 126.1% to CHF 58.1 million (first half of 2011: CHF 25.7 million). The extraordinary increase was achieved as a result of the sale of over 40,000 sq.m. of land at the Bülach site. The non-recurring effect on pre-tax profit amounted to some CHF 36 million.
Cash flow was 8.6% below the previous year’s level, at CHF 58.8 million (first half of 2011: CHF 64.3 million). The cash flow margin was 19.0% of gross turnover (first half of 2011: 21.0%).
Capacity at the Vetropack Group remains fully utilized. The planned refurbishment at the Pöchlarn plant in Austria will prevent an increase in output capacity. The high energy and maintenance costs mentioned above mean that the EBIT margin should remain at around the same level at the end of the year as in the first half.

Sign up for free to the glassOnline.com daily newsletter

Subscribe now to our daily newsletter for full coverage of everything you need to know about the world glass industry!

We don't send spam! Read our Privacy Policy for more information.

Share this article
Related news