Vetropack: Increase in sales and revenue, but margins remain under pressure

In the first half of 2013, the Vetropack Group achieved sales of 2.23 billion units of glass packaging (previous year: 2.21 billion units) and consolidated gross revenue of CHF 315.1 million (previous year: CHF 308.6 million). Consolidated EBIT came in at CHF 29.9 million (previous year: CHF 32.5 million). The EBIT margin reached 9.5 per cent (previous year: 10.5 per cent) and the cash flow margin was 16.9 per cent of gross revenue (previous year: 19.0 per cent).Due to the subdued economic situation, the first half of 2013 was characterised by cautious consumer behaviour. Coupled with the severe storms, this led to a decline in sales that affected the beverage industry throughout Europe. However, in this demanding market environment, the Vetropack Group still managed to sell 2.23 billion units of glass packaging (previous year: CHF 2.21 billion), 1.2 per cent more than in the same period in the previous year. The increase was predominantly achieved in the export markets.Consolidated gross revenue amounted to CHF 315.1 million (previous year: CHF 308.6 million), 2.1 per cent up on the previous year. The increase in sales and the positive exchange rate effects each contributed equally to this good result. However, the price adjustments in the market failed to achieve their full effect due to a shift in the sales mix towards products with smaller margins.Due to increased costs in the areas of raw materials and staff and write-downs, consolidated EBIT fell to CHF 29.9 million (previous year: CHF 32.5 million). The EBIT margin amounted to 9.5 per cent (previous year: 10.5 per cent) of gross revenue.The consolidated semi-annual profit of CHF 28.5 million (previous year: CHF 58.1 million) was favourably influenced by currency effects and the sale of a property that the company did not need, which boosted pre-tax profit by CHF 2.8 million. The same period in the previous year also benefitted from the sale of land for CHF 36 million.At CHF 53.3 million (previous year: CHF 58.8 million), cash flow was 9.4 per cent lower than the previous year. The cash flow margin reached 16.9 per cent of gross revenue (previous year: 19.0 per cent).Outlook for the second half of 2013Vetropack is not expecting any fundamental changes in the economic situation in the second half of the year. However, consumption should pick up again due to the weather. Various cost elements are also expected to develop more favourably than in this reporting period. These include energy, raw material and staff costs. For the financial year overall, we expect sales and revenue figures to be slightly above those of the previous year, while the operating result should be similar to the result achieved in the 2012 financial year.To watch the Semi-Annual Report 2013: Please click here 24.09.2013, Vetropack AG