Vetropack Group recorded a challenging fiscal year in 2024 with falling revenue and profit. The decline is due to market conditions and closure costs for the plant in St-Prex. A cautious recovery is expected for 2025.
Vetropack Group can look back on one of the most difficult years in its history. Net sales fell by 6.3 % to CHF 842.1 million (currency-adjusted -4.2 %) as a result of a persistently tense market environment, overcapacity and falling sales prices. Adjusted EBIT fell by 37.2 % to CHF 58.6 million. Consolidated profit fell significantly to CHF 13.7 million (previous year: CHF 63.3 million) - influenced by one-off costs of CHF 24.3 million in connection with the plant closure in St-Prex.
Burden from price pressure and falling energy costs
According to Vetropack, the decline in sales reflects both the lower energy prices, which have a direct impact on sales prices, as well as the increasing Price pressure due to overcapacity in the market. The Adjusted EBIT margin fell to 7.0 % (previous year: 10.4 %). The Cash flow decreased to CHF 103.6 million. (-20.4 %), corresponding to a cash flow margin of 12.3 %.
Investments and balance sheet ratios
Investments in 2024 totalled CHF 90.3 million., significantly below the previous year's figure of CHF 238.0 million, which was still heavily influenced by the new plant in Boffalora sopra Ticino was characterised by a positive cash flow. A positive cash inflow after investments in the amount of CHF 46.4 million. (previous year: -164.1 million) was used to Debt reduced by EUR 50 million. utilised. The Equity ratio increased to 61.3 %.
Employees and structural measures
The number of employees fell by 5.0 % to 3.585, This was mainly due to the plant closure in St-Prex and a cautious personnel policy. Jobs were only occasionally filled or newly created.
Outlook for the year 2025
In 2025, Vetropack expects a Cautious market stabilisation, but not a complete normalisation. The geopolitical situation, in particular the war in Ukraine and economic policy developments in the USA, remain risk factors, according to the report.
The company plans to maintain its strategic course: prudent investments, Flexible capacity management and a Proactive personnel policy. For 2025, Vetropack expects a slightly better operating result and a significantly higher net profit, as the special effects from 2024 no longer apply. The volatile energy costs remain an uncertainty factor.
At the end of 2025 CEO Johann Reiter will retire. The Board of Directors has announced that it will communicate the successor in good time.
Source: Vetropack Holding AG
