Earnings Before Interest and Tax (EBIT) almost doubled to CHF 132.0 million. Consolidated annual profit increased by over 133% to CHF 100.9 million.
Demand for glass packaging has been rising steadily throughout Europe for over two years. This is beneficial not only to the Vetropack Group, but to the entire European glass industry. In this positive market environment Vetropack increased its unit sales to 4.26 billion. Two thirds of sales were within the domestic markets in which Vetropack Group has its production facilities. Despite the renewed increase in production capacity it was impossible to fully meet demand. The focus was therefore on strengthening the company's domestic market positions.
Vetropack’s uninterrupted utilisation of full production capacity at all its locations, combined with its efficiency improvements and stringent cost management, led to an outstanding increase in added value. Moreover, the Ukrainian facility OJSC Vetropack Gostomel made its first full 12 months' contribution towards the consolidated annual financial statements in 2007. Accordingly EBIT rose to an impressive CHF 132.0 million (2006: CHF 67.4 million), and the EBIT margin represented a healthy 18.9% of gross revenues. Consolidated annual profits increased by 133.6% to CHF 100.9 million.
Thanks to forward looking investments, further progress was also made on the efficiency front in 2007. Vetropack Group invested a total of CHF 86.9 million in assets such as buildings, and process equipment to increase production capacity. Most of this was invested in Vetropack Gostomel. Thanks to the construction of a new green-glass furnace, this location’s daily production capacity increased by 210 tons. With its daily melting capacity of 820 tons of glass, Vetropack Gostomel is currently the largest production facility within the Vetropack Group.
Vetropack Holding Ltd
During the year under review, Vetropack Holding AG reported net profits of CHF 17.6 million (2006: CHF 12.9 million). The board of directors proposes a nominal dividend distribution of 70% to the Annual General Assembly (AGA) (2006: 32%). This represents a gross dividend increase of CHF 19.00 to CHF 35.00 per bearer share, and CHF 3.80 to CHF 7.00 per registered share.
Vetropack Holding Ltd’s AGA will take place on Wednesday, 14th May 2008 at 11.15 a.m. in Bulach.