Consolidated EBIT was CHF 61 million year on year (2007: CHF 58.5 million). Consolidated half-year profit increased by 16.9% year on year to CHF 51.3 million (2007: CHF 43.9 million). The cash flow margin was 21.7% year on year (2007: 23.0%).
During the first half of 2008, Vetropack Group generated consolidated gross revenues in the sum of CHF 380.1 million y-o-y (2007: CHF 346.1 million), representing growth of 9.8% (10.1% after currency adjustments).
During the period under review, a total of 2.23 billion units of glass packaging were sold, representing a quantitative increase of 3.2% y-o-y (2007: 2.16 billion). All available furnaces were utilised to full capacity. The growth in sales was particularly due to the commissioning of the new green glass furnace at OJSC Vetropack Gostomel (Ukraine) in August 2007. Demand in both domestic and export markets remains high. Vetropack Group succeeded in fully meeting its’ contractually agreed upon domestic demand, whilst keeping exports relatively stable at 32.7% (2007: 33.0%).
Consolidated EBIT reached CHF 61 million, exceeding last year's figure of CHF 58.5 million by 4.3%. The EBIT margin fell slightly to 16.0% y-o-y. (2007: 16.9%). This was essentially due to the cyclical revision of a furnace at Vetropack Moravia Glass, a.s. (Czech Republic), the reconstruction of the green glass furnace at Vetropack Straža d.d. (Croatia), as well as the disproportionate rise in the cost of energy and raw materials. Consolidated profit for the first half year rose by 16.9% to CHF 51.3 million y-o-y (2007: CHF 43.9 million). Cash flow grew by 3.3% to CHF 82.3 million y-o-y (2007: CHF 79.7 million). The cash flow margin therefore represents 21.7% of gross revenues y-o-y (2007: 23.0%).
Expectations for the Second Half of 2008
Furnace revision and reconstruction activities were emphasised during the first half year, thus no further production interruptions are expected during fiscal year 2008. This optimal situation indeed provides a sound basis for further increasing the Group's gross revenues. However, the upward trend in energy and raw materials costs will hold back added value development. Furthermore, initial indications of a growth slowdown in particular markets are foreseeable during the second half of the year. Irrespective of these facts, strong demand is likely to continue in all markets.
Vetropack Holding Ltd. expects the fiscal year end results for 2008 to be substantially better than last year's.
For further information please contact:
Vetropack Holding Ltd.
David Zak, CFO
Tel: +41 (0)44 863 32 25
Fax: +41 (0)44 863 31 33