It also enabled the Group to replenish its low inventories, so that it can respond to market requirements in a more flexible way. The strength of the Swiss franc has, however, led to a fall in revenue. The stable EBIT margin and a slight improvement in the cash flow margin demonstrate the consistently high earning power of Vetropack Group.
• Revenue: CHF 589.4 (2010: CHF 642.6 million)
• EBIT: CHF 77.3 (2010: CHF 84.2 million)
• EBIT margin: 13.1% (2010: 13.1%)
• Annual profit: CHF 59.0 (2010: CHF 38.7 million)
• Net liquidity: CHF 33.9 million (2010: CHF 40.8 million)
• Cash flow: CHF 117.3 million (2010: CHF 122.6 million)
• Cash flow margin: 19.9% (2010: 19.1%)
• Equity ratio: 74.3% (2010: 76.9%)
The consolidated gross revenue for Vetropack Group amounted to CHF 589.4 million, 8.3% down on the previous year’s figure of CHF 642.6 million due to the negative currency effects. Adjusted for currency effects, however, revenue in 2011 exceeded the previous year’s figure by 1.6%. The negative currency effects amounted to 9.9%.
In the year under review, Vetropack produced 1,246,025 saleable tons of glass packaging, around 2.8% more than in the previous year (2010: 1,211,991 tons). This increase in production was primarily geared towards enabling the Group to replenish its low inventories. A total of 4.17 billion glass packaging units were sold (2010: 4.36 billion). This reduction opened up capacity for Vetropack Group to produce glass packaging with a higher margin. 60.4% of the units were sold on domestic markets (2010: 59.8%).
Consolidated EBIT fell to CHF 77.3 million (2010: CHF 84.2 million), although the EBIT margin remained constant at 13.1% of gross revenue (2010: 13.1%). The consolidated annual profit rose by 52.5% to CHF 59.0 million (2010: CHF 38.7 million). Foreign exchange losses caused by the effect of currency fluctuations on liquid funds and internal loans had a considerably lower impact than in the previous year, amounting to CHF 4.4 million net (2010: CHF 30.1 million).
Vetropack Group invested a total of CHF 85.2 million in 2011 (2010: CHF 52.7 million). The replacement of a green-glass melting furnace at Vetropack’s Austrian production facility in Kremsmünster was the main focus of the Group’s investment programme. In addition, glassblowing machines were replaced at several sites in order to improve furnace utilisation.
Vetropack Holding Ltd.
At the Annual General Assembly, the Board of Directors will propose the payment of a gross dividend of CHF 35.00 per bearer share (2011: CHF 30.00 plus a centennial dividend of CHF 15.00) and of CHF 7.00 per registered share (2011: CHF 6.00 plus a centennial dividend of CHF 3.00).
Having reached retirement age, Werner Degen is stepping down from the Board of Directors. To replace him, the Board therefore intends to propose to the Annual General Assembly the election of the 54-year-old Sönke Bandixen, a citizen of Stein am Rhein, Canton of Schaffhausen. Holder of a degree in mechanical engineering from the Swiss Federal Institute of Technology Zurich and graduate of the Harvard Business School, Boston, USA, he has extensive experience in business management and is familiar with the challenges of international markets.
The Annual General Assembly of Vetropack Holding Ltd. will be held at 11.15 am on Wednesday, 9 May 2012 in Bülach, in the Canton of Zurich.
The 2011 Annual Report for Vetropack Group is available online at the link below.