Financial Report
Vetropack Group

Notes

Audited information
1.Accounts Receivables

1. Accounts Receivables

CHF millions

31.12.2021

31.12.2020

 

 

 

Gross receivables

147.7

127.3

Value adjustments

– 5.2

– 3.8

Net receivables

142.5

123.5

2.Other Short-Term Receivables

2. Other Short-Term Receivables

CHF millions

31.12.2021

31.12.2020

 

 

 

VAT (value added tax) credit

8.2

3.9

Withholding tax credit

2.9

2.5

Other short-term receivables

5.3

7.2

Total

16.4

13.6

3. Inventories

3. Inventories

CHF millions

31.12.2021

31.12.2020

 

 

 

Raw materials

14.0

13.5

Materials and supplies

59.7

54.9

Work-in-progress

4.1

4.1

Finished goods, merchandise

109.1

129.3

Advance payments

0.5

0.4

Value adjustments

– 42.8

– 50.5

Total

144.6

151.7

4.Accruals

4. Accruals

CHF millions

31.12.2021

31.12.2020

 

 

 

Ongoing income tax (credit)

1.2

1.1

Other accruals

1.4

0.9

Total

2.6

2.0

5. Tangible Assets

5. Tangible Assets

CHF millions

 

 

 

 

 

 

 

Real Estate & Buildings Non- operating

Real Estate & Buildings operating

Furnaces Equipment Prod. Facilities Moulds

Other Tangible Assets

Adance Payments & Assets Under Construction

Total

Acquisition Value

 

 

 

 

 

 

As per 1.1.2020

75.3

296.1

895.6

40.6

43.3

1 350.9

Change consolidation scope

–

9.5

20.6

0.7

5.0

35.8

Additions

0.1

1.8

15.8

0.8

53.1

71.6

Disposals

– 22.2

– 0.3

– 24.5

– 1.5

–

– 48.5

Reclassifications

– 0.7

2.2

9.1

1.3

– 11.8

0.1

Foreign exchange differences

– 0.1

– 3.9

– 24.4

– 0.9

– 0.2

– 29.5

As per 1.1.2021

52.4

305.4

892.2

41.0

89.4

1 380.4

Additions

–

2.2

21.2

2.2

92.6

118.2

Disposals

–

0.7

– 12.7

– 2.2

–

– 14.2

Reclassifications

–

17.3

60.5

0.7

– 78.5

–

Foreign exchange differences

– 0.1

– 8.8

– 22.6

– 0.9

– 4.3

– 36.7

As per 31.12.2021

52.3

316.8

938.6

40.8

99.2

1 447.7

Accumulated Depreciation

 

 

 

 

 

 

As per 1.1.2020

31.5

183.4

543.6

33.2

–

791.7

Ordinary depreciation

0.9

6.6

64.4

2.4

–

74.3

Disposals

– 19.5

– 0.2

– 24.2

– 1.5

–

– 45.4

Reclassifications

–

–

–

–

–

–

Asset impairments*

–

–

–

–

–

–

Foreign exchange differences

–

– 2.0

– 11.1

– 0.6

–

– 13.7

As per 1.1.2021

12.9

187.8

572.7

33.5

–

806.9

Ordinary depreciation

0.9

7.2

71.4

2.5

–

82.0

Disposals

–

0.7

– 12.5

– 2.2

–

– 14.0

Reclassifications

–

0.1

–

– 0.1

–

–

Asset impairments*

–

–

0.1

0.1

–

0.2

Foreign exchange differences

–

– 5.0

– 15.1

– 0.7

–

– 20.8

As per 31.12.2021

13.8

190.8

616.6

33.1

–

854.3

 

 

 

 

 

 

 

Book Value

 

 

 

 

 

 

As per 1.1.2021

39.5

117.6

319.5

7.5

89.4

573.5

As per 31.12.2021

**38.5

**126.0

322.0

7.7

***99.2

593.4

* The asset impairments relate to adjustments to the residual values of production facilities.

** of which vacant real estate plots valued at CHF 19.7 million (2020: CHF 2.6 million)

*** of which payments on assets under construction CHF 0.7 million (2020: CHF 2.5 million)

6.Financial Assets

6. Financial Assets 

CHF millions

Note

31.12.2021

31.12.2020

 

 

 

 

Employer's contribution reserves

27

12.5

12.3

Assets from pension funds

 

2.1

2.1

Deferred taxes

20

2.3

1.7

Participations in associated companies

 

0.3

0.3

Other financial investments

 

0.2

0.4

Total

 

17.4

16.8

7.Intangible Assets

7. Intangible Assets

CHF millions

 

 

 

 

 

Software

Software in Development

Other Intangible Assets

Total

Acquisition Value

 

 

 

 

As per 1.1.2020

50.4

1.6

1.2

53.2

Additions

1.5

0.6

–

2.1

Disposals

– 0.1

–

–

– 0.1

Reclassifications

1.4

– 1.4

–

–

Foreign exchange differences

– 0.1

–

–

– 0.1

As per 1.1.2021

53.1

0.8

1.2

55.1

Additions

0.8

0.1

0.1

1.0

Disposals

– 0.2

–

–

– 0.2

Reclassifications

0.6

– 0.6

–

–

Foreign exchange differences

–

–

–

–

As per 31.12.2021

54.3

0.3

1.3

55.9

Accumulated Amortisation

 

 

 

 

As per 1.1.2020

45.6

–

1.1

46.7

Ordinary amortisation

2.7

–

–

2.7

Disposals

– 0.1

–

–

– 0.1

Reclassifications

–

–

–

–

Asset impairments

–

–

–

–

Foreign exchange differences

– 0.1

–

–

– 0.1

As per 1.1.2021

48.1

–

1.1

49.2

Ordinary amortisation

2.2

–

–

2.2

Disposals

– 0.2

–

–

– 0.2

Reclassifications

–

–

–

–

Asset impairments

–

–

–

–

Foreign exchange differences

–

–

–

–

As per 31.12.2021

50.1

–

1.1

51.2

 

 

 

 

 

Book Value

 

 

 

 

As per 1.1.2021

5.0

0.8

0.1

5.9

As per 31.12.2021

4.2

0.3

0.2

4.7

There were no licences, patents or brands in 2020 or 2021.

8.Financial Debts

8. Financial Debts

CHF millions

31.12.2021

31.12.2020

 

 

 

Residual period

 

 

– < 1 year*

11.5

5.5

– 1 to 2 years**

7.9

6.1

– 3 to 5 years***

5.6

20.7

– > 5 years****

12.5

12.5

Total

37.5

44.8

* in CHF; interest rate between 0.65% to 1.85% (2020: 0.0% to 5.0%)

** in CHF; interest rate between 0.7% to 3.25% (2020: 0.0% to 5.0%)

*** in CHF; interest rate between 4.6% to 6.0% (2020: 4.85% to 6.0%)

**** in CHF; interest rate 0.99% (2020: 0.99%)

9.Other Short-Term Liabilities

9. Other Short-Term Liabilities

CHF millions

31.12.2021

31.12.2020

 

 

 

Prepaid recycling fee

5.4

5.0

Advance payments

1.8

2.2

Liabilities to employees

6.5

5.9

Other short-term liabilities

13.5

15.3

Total

27.2

28.4

10.Deferrals

10. Deferrals

CHF millions

31.12.2021

31.12.2020

 

 

 

Ongoing liable income taxes

6.8

5.5

Unclaimed vacations and overtime compensations

7.5

7.4

Other deferrals

16.6

14.3

Total

30.9

27.2

11.Provisions

11. Provisions

CHF millions

 

 

 

 

 

 

Service Anniversary

Pensions

Deferred Tax Liabilities

Other

Total

As per 1.1.2020

5.7

14.7

16.4

8.8

45.6

Reclassifications

–

–

–

–

–

Formations

0.6

1.8

0.6

2.7

5.7

Liquidations

– 0.2

– 0.1

– 1.6

– 5.7

– 7.6

Utilisations

– 0.1

– 1.7

–

– 3.2

– 5.0

Foreign exchange differences

– 0.1

– 0.2

– 0.2

–

– 0.5

As per 1.1.2021

5.9

14.5

15.2

2.6

38.2

Reclassifications

–

–

–

–

–

Formations

0.8

1.8

1.8

7.8

12.2

Liquidations

– 0.2

– 0.1

– 1.2

– 0.2

– 1.7

Utilisations

– 0.1

– 2.7

–

– 6.3

– 9.1

Foreign exchange differences

– 0.2

– 0.6

–

– 0.1

– 0.9

As per 31.12.2021

6.2

12.9

15.8

3.8

38.7

Of which short-term

0.8

–

–

3.8

4.6

Of which long-term

5.4

12.9

15.8

–

34.1

Deferred Tax Liabilities: details see here.

Service Anniversaries: Provisions are formed in respect to remuneration for long service to the company as defined in the Employment Regulations. These provisions, which take into account country-specific corrective factors for the staff turnover, were discounted between 0% to 11% (2020: 0% to 11%) as per balance sheet date.

12.Share Capital

12. Share Capital

The share capital is structured as follows:

CHF millions

31.12.2021

31.12.2020

 

 

 

13 774 000 Registered shares A (2020: 13 774 000) nominal value CHF 1.00 (2020: CHF 1.00) (issued and paid in full)

13.8

13.8

30 250 000 Registered shares B (2020: 30 250 000) nominal value CHF 0.20 (2020: CHF 0.20) (issued and paid in full)

6.0

6.0

Total

19.8

19.8

The registered shares A (Security no. 622 761) are listed on the SIX Swiss Exchange, Swiss Reporting Standard. With a closing price at the end of the year of CHF 57.60 (2020: CHF 59.70) total capitalisation is CHF 1,141.9 million (2020: CHF 1,183.5 million). Each registered share has one voting right.

Major Shareholders with > 3% of Voting Rights

 

31.12.2021

31.12.2020

 

 

 

Shareholder group Cornaz according to latest SIX publication

71.6%

76.1%

One shareholders’ agreement exists between the shareholders of Cornaz AG-Holding, another between Cornaz AG-Holding and other shareholders (details see here).

13.Segment Reporting

13. Segment Reporting

The segment reporting used at the top management level for corporate management has just one significant
segment (“Glass packaging”). The secondary segment “Speciality glass” comprises only trade revenue in Switzerland (Müller + Krempel Ltd).

Net Sales by Country

CHF millions

 

 

 

 

Change

2021

2020

Glass Packaging

 

 

 

– Switzerland

3.2%

79.9

77.4

– Austria

13.1%

219.4

194.0

– Czech Republic

20.4%

79.7

66.2

– Croatia

31.1%

133.2

101.6

– Slovakia

2.7%

63.6

61.9

– Ukraine

15.9%

63.4

54.7

– Italy

27.2%

115.6

90.9

– Republic of Moldova

1.288.9%

50.0

3.6

Speciality Glass (Switzerland)

– 4.9%

11.7

12.3

Total

23.2%

816.5

662.6

Vetropack Group does not publish details on its segment results, as there is a significant risk that this could cause competitive disadvantages. The markets in which the Business Units of Vetropack operate are narrow niche sectors with few, primarily private suppliers, who could draw conclusions about the margins and prices from the segment results.

14.Other Operating Income

14. Other Operating Income

CHF millions

2021

2020

 

 

 

Material and energy sales

3.2

3.0

Ancillary services

1.7

1.3

Real estate management income

0.6

0.6

Internally produced additions to plant and equipment

2.5

1.2

Supplier commissions

1.1

1.8

Allocations disposal fees

2.2

2.0

Other income

3.9

2.7

Total

15.2

12.6

15.Material costs

15. Material costs

CHF millions

2021

2020

 

 

 

Raw material

116.6

100.6

Merchandise

11.6

11.3

Total

128.2

111.9

16.Personnel Expenses

16. Personnel Expenses

CHF millions

2021

2020

 

 

 

Wages and salaries

137.5

126.3

Social benefits

39.7

35.3

Other personnel expenses

6.5

5.9

Total

183.7

167.5

Headcount by Country

 

Change

31.12.2021

31.12.2020

 

 

 

 

Switzerland

4.5%

305

292

Austria

– 1.5%

702

713

Czech Republic

0.9%

455

451

Croatia

1.7%

616

606

Slovakia

– 1.8%

377

384

Ukraine

– 0.3%

629

631

Italy

– 1.7%

296

301

Republic of Moldova

2.4%

516

504

Total

0.4%

3 896

3 882

17.Other Operating Expenses

17. Other Operating Expenses

CHF millions

2021

2020

 

 

 

Maintenance and repairs

34.6

32.9

Mould costs

8.3

6.8

Packaging material

34.2

23.1

Transport costs

54.4

41.7

Other administrative and operating expenses

71.4

65.4

Total

202.9

169.9

18. Financial Result

18. Financial Result

CHF millions

2021

2020

 

 

 

Interest income

0.8

0.6

Interest expenses

– 1.5

– 0.3

Currency exchange gains

5.3

7.0

Currency exchange losses

– 11.1

– 5.8

Other financial income

–

–

Total

– 6.5

1.5

19.Non-Operating Result

19. Non-Operating Result

CHF millions

2021

2020

 

 

 

Non-operating real estate income

2.7

2.7

Non-operating real estate expenses

– 1.2

– 1.4

Non-operating real estate depreciation/impairments

– 0.9

– 0.9

Other non-operating income/expenses *

0.2

11.7

Total

0.8

12.1

* In the year 2020 this position included a gain from the sale of a non-operating property of CHF 11.7 million.

20.Income Taxes

20. Income Taxes

CHF millions

2021

2020

 

 

 

Ongoing income taxes

12.1

9.7

Deferred income taxes

–

– 1.2

Total

12.1

8.5

Loss carryforwards amounted to CHF 9.0 million (2020: CHF 15.5 million) in total at the end of the reporting year. No loss carryforwards were included in the calculation of the deferred income tax assets (2020: CHF 4.5 million). The impact on the tax on earnings of unrecognised loss carryforwards was CHF 2.2 million in the reporting year (2020: CHF 2.6 million). In the reporting year CHF 6.0 million unrecognised loss carryforwards were used (2020: CHF 3.5 million). There was an impact of CHF -1.1 million in the reporting year on income taxes due to the use of unrecognized losses carried forward (2020: CHF -0.6 million). In the reporting year, as in the previous year, there was no impact due to the use or expiry of unrecognised loss carryforwards.

The country-specific tax rates that apply to the calculation of the deferred taxes on earnings range from 11.6% to 25.0% (2020: 11.0% to 25.0%).

The weighted average tax rate to be applied based on the ordinary result is 19.1% (2020: 18.3%).

21.Results per Participation Right

21. Results per Participation Right

The undiluted result per share is calculated by dividing the consolidated profit for the applicable year that is to be allocated to the shareholders of the Vetropack Group by the weighted average number of outstanding shares.

 

2021

2020

 

 

 

Consolidated profit allocated to the shareholders of the Vetropack Group in million CHF

63.8

81.2

 

 

 

Weighted number of outstanding registered shares A for undiluted result per share

19 824 000

19 824 000

Weighted number of outstanding registered shares B for undiluted result per share

99 120 000

99 120 000

 

 

 

Undiluted result per registered share A in CHF

3.22

4.10

Undiluted result per registered share B in CHF

0.64

0.82

The diluted result per share is calculated in the same way as the undiluted result for both share types, as no dilution potential exists for either.

22.Investments Tangible Assets

22. Investments Tangible Assets

Investments by Country

CHF millions

2021

2020

 

 

 

Switzerland

2.4

2.6

Austria

15.1

11.3

Czech Republic

2.0

2.0

Croatia

10.3

34.7

Slovakia

6.0

3.5

Ukraine

4.9

3.9

Italy

71.6

9.2

Republic of Moldova

5.9

4.4

Total

118.2

71.6

23.Off Balance Sheet Transactions

23. Off Balance Sheet Transactions

CHF millions

31.12.2021

31.12.2020

 

 

 

Letters of comfort

2.7

2.5

Guarantees

7.9

0.4

Off balance sheet leasing

2.4

0.5

Total

13.0

3.4

Contingent liabilities are stated at their maximum amounts (full sum of liability).

The repayment structure of the off balance sheet leasing liabilities is as follows:

CHF millions

31.12.2021

31.12.2020

 

 

 

Maturity

 

 

– 1 to 2 years

0.9

0.4

– 3 to 5 years

1.1

0.1

– > 5 years

0.4

–

Total

2.4

0.5

24.Pledged Assets

24. Pledged Assets

The following assets’ book values are used as collateral to secure bank credits and mortgages:

CHF millions

31.12.2021

31.12.2020

 

 

 

Accounts receivables

18.0

18.2

Inventories

7.3

8.7

Real estate

59.0

68.9

Total

84.3

95.8

25.Derivative Financial Instruments

25. Derivative Financial Instruments

As at 31 December 2021, Vetropack Holding Ltd has open currency swaps in the amount of EUR 7.000.000 (CHF 7.276.500) with a positive market value of CHF 14.700. No derivative financial instruments were held as at the reporting date in the previous year.

26.Transactions with Related Parties

26. Transactions with Related Parties

CHF millions

31.12.2021

31.12.2020

Pension Funds

 

 

Accounts receivables

–

–

Accounts payables

0.1

0.1

Interest expenses

–

–

Associated Companies

 

 

Accounts receivables

–

–

Accounts payables

1.0

0.9

Capitalised services

–

–

Service income

–

–

Equity income

–

–

Glass cullet purchasing expenses

– 4.6

– 4.2

Maintenance and repairs expenses

–

– 0.3

Other service expenses

–

–

Equity valuation expenses

–

–

Other Closely Associated Persons

 

 

Accounts receivables

–

–

Accounts payables

0.2

3.2

Investments in tangible assets

–

2.7

Distribution income

–

–

Service income

–

–

Packaging material expenses

– 0.4

– 0.3

Distribution expenses

–

–

Service expenses

– 0.1

– 0.1

Interest expenses

–

–

Tangible assets sales

–

–

The classification of “Other Closely Associated Persons” includes transactions with the following natural persons and legal entities, irrespective of the Vetropack Company in which they occurred: shareholders with voting rights of more than 20%, BoD members, MB members and all companies that are directly or indirectly controlled by these persons.

Transactions with closely associated persons and companies are handled on the basis of normal market terms and conditions.

27.Pension Fund

27. Pension Fund

There exist various pension schemes within the Group, which are based on regulations of their respective countries. In Switzerland, these are contributor funded schemes in accordance with Swiss pension fund law; abroad they are state-guaranteed contribution-based pension schemes. The schemes are financed either through contributions to legally independent institutions and trusts or by registering the pension fund liability in the financial statements of the Group companies.

Employer’s Contribution Reserves

Company Sponsored Pension Funds

CHF millions

2021

2020

 

 

 

Nominal value 31.12.

13.1

12.9

Utilisation waiver 31.12.

–

–

Other value adjustments 31.12.

–

–

Discounting effects 31.12.

– 0.6

– 0.6

Book value 31.12.

12.5

12.3

Assets and Liabilities from Pension Funds

CHF millions

 

 

 

 

 

 

Company Sponsored Pension Funds

Pension Funds without Excess / Deficiency Cover

Pension Funds with Excess / Cover

Pension Funds without own Assets

Total

Excess / deficiency cover 31.12.2021

11.7

–

50.9

–

62.6

Economic utilisation/liabilities 31.12.2020

–

–

–

– 11.8

– 11.8

Economic utilisation/liabilities 31.12.2021

–

–

–

– 10.3

– 10.3

Changes 2021

–

–

–

– 1.5

– 1.5

Contributions restricted to the period*

– 0.2

–

2.5

2.0

4.3

Pension expenses 2020

–

–

2.5

1.4

3.9

Pension expenses 2021

– 0.2

–

2.5

0.5

2.8

* including changes in employer's contribution reserves

The values for pension funds of Swiss companies are based on previous years’ financial statements, whereby all substantive decisions in the current fiscal year are taken into account. The uncommitted funds are not available to the Vetropack Group.

CHF millions

2021

2020

 

 

 

Key influential factors

 

 

– Changes in employer's contribution reserves

– 0.2

–

– Changes in economic utilisation / liabilities

– 1.5

– 0.2

– Pension fund contributions

4.5

4.1

Total Pension Fund Expenses

2.8

3.9

28.Acquisition

28. Acquisition

On 10 December 2020, the group acquired a Moldovan glass factory based in Chișinău and fully consolidated it for the first time from 30 November 2020.

The current values of the net assets as at the date of acquisition are as follows:

CHF millions

30.11.2020

 

 

Liquid funds

1.6

Accounts receivables

15.3

Other short-term receivables

2.9

Inventories

9.0

Subtotal Short-term Assets

28.8

Long-term Assets

37.1

Total Assets

65.9

Accounts payables

3.7

Short-term financial debts

2.0

Advance payments

2.4

Other short-term liabilities

2.2

Deferrals

1.0

Subtotal Short-term Liabilities

11.3

Long-term financial debts

27.8

Subtotal Long-term Liabilities

27.8

Total Liabilities

39.1

Acquired net assets, measured at current market value

26.8

Goodwill from the acquisition

31.7

Total

58.5

Total consideration

58.5

Analysis of cash outflow as a result of the company acquisition:

 

Amount paid in 2020 (investment activity)

44.4

Cash acquired with the subsidiary (investment activity)

– 1.6

Actual cash outflow as a result of the company acquisition

42.8

The total consideration includes a fixed purchase price component of CHF 44.4 million and further payments dependent on future results, which presently is estimated at CHF 14.1 million.

The goodwill of a purchased consolidated company is offset with equity at the date of acquisition. The theoretical amortisation of the goodwill is determined with a useful life of five years. A theoretical capitalisation of the goodwill would have the following impact on the consolidated financial statements:

CHF millions

2021

2020

 

 

 

Theoretical goodwill

 

 

Gross book value as at 01.01.

34.4

16.8

Addition from acquisition*

10.4

17.6

Gross book value as at 31.12.

44.8

34.4

Accumulated amortisation as at 01.01.

– 17.3

– 15.0

Amortisation

– 5.6

– 2.3

Accumulated amortisation as at 31.12.

– 22.9

– 17.3

Net book value as at 01.01.

17.1

1.8

Net book value as at 31.12.

21.9

17.1

 

 

 

Effect on Balance Sheet

 

 

Sharholders' Equity according to Balance Sheet

774.5

763.6

Theoretical capitalisation of net book value of goodwill

21.9

17.1

Theoretical Shareholders' Equity incl. net book value of goodwill

796.4

780.7

 

 

 

Effect on Income Statement

 

 

Consolidated Profit

63.8

81.2

Amortisation goodwill

– 5.6

– 2.3

Theoretical Consolidated Profit incl. amortization of goodwill

58.2

78.9

* 2020: adjusted for consistency with goodwill offset in equity

29.Events after the Balance Sheet Date

29. Events after the Balance Sheet Date

Because of the military escalation in the Ukraine war and to protect employees, the Vetropack Group stopped the glass factory in Gostomel near Kiev. The factory was severely damaged by military action. In 2021, Vetropack Gostomel contributed around 10 percent to Vetropack Group’s sales and operating performance. Given the rapid and uncertain developments in Ukraine and their impact on the plant there, it is impossible to quantify the impact on the Group for the 2022 financial year at this time. Irrespective of this, the Group’s ability to continue as a going concern is still given.

Valuation Principles
Ownership Structure