Financial Report
Vetropack Group

Notes

Audited information
1.Accounts Receivables

CHF millions

31.12.2022

31.12.2021

 

 

 

Gross receivables

184.9

147.7

Value adjustments

– 5.9

– 5.2

Net receivables

179.0

142.5

2.Other Short-Term Receivables

CHF millions

31.12.2022

31.12.2021

 

 

 

VAT (value added tax) credit

20.4

8.2

Withholding tax credit

2.2

2.9

Other short-term receivables

8.7

5.3

Total

31.3

16.4

3. Inventories

CHF millions

31.12.2022

31.12.2021

 

 

 

Raw materials

17.1

14.0

Materials and supplies

58.9

59.7

Work-in-progress

4.9

4.1

Finished goods, merchandise

115.4

109.1

Advance payments

0.7

0.5

Value adjustments

– 41.5

– 42.8

Total

155.5

144.6

4.Prepaid expenses and accrued income

CHF millions

31.12.2022

31.12.2021

 

 

 

Ongoing income tax (credit)

2.9

1.2

Other prepaid expenses and accrued income

3.3

1.4

Total

6.2

2.6

5. Tangible Assets

CHF millions

 

 

 

 

 

 

 

Real Estate & Buildings Non- operating

Real Estate & Buildings operating

Furnaces, Equipment, Prod. Facilities, Moulds

Other Tangible Assets

Advance Payments & Assets Under Construction

Total

Acquisition Value

 

 

 

 

 

 

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 1.1.2022

52.3

316.8

938.6

40.8

99.2

1 447.7

Additions

0.1

0.2

8.5

1.5

183.8

194.1

Disposals

– 9.3

– 1.4

– 10.7

Reclassifications

0.1

1.0

11.6

0.7

– 13.4

Foreign exchange differences

– 0.1

– 13.5

– 50.3

– 2.0

– 8.4

– 74.3

As per 31.12.2022

52.4

304.5

899.1

39.6

261.2

1 556.8

Accumulated Depreciation

 

 

 

 

 

 

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 1.1.2022

13.8

190.8

616.6

33.1

854.3

Ordinary depreciation

0.9

6.4

61.8

2.1

71.2

Disposals

– 6.0

– 1.3

– 7.3

Asset impairments*

1.3

15.5

0.5

0.6

17.9

Foreign exchange differences

– 7.3

– 32.2

– 1.5

0.1

– 40.9

As per 31.12.2022

14.7

191.2

655.7

32.9

0.7

895.2

 

 

 

 

 

 

 

Book Value

 

 

 

 

 

 

As per 1.1.2022

38.5

126.0

322.0

7.7

99.2

593.4

As per 31.12.2022

**37.7

**113,3

243.4

6.7

***260,5

661.6

* of which CHF 15.6 million relates to the Ukrainian production plant in Gostomel, which is reported in the extraordinary result

** of which vacant real estate plots valued at CHF 18.8 million (2021: CHF 19.7 million)

*** of which payments on assets under construction CHF 5.6 million (2021: CHF 0.7 million)

6.Financial Assets

 

CHF millions

Note

31.12.2022

31.12.2021

 

 

 

 

Employer's contribution reserves

29

11.8

12.5

Assets from pension plans

 

2.1

2.1

Deferred taxes

22

2.8

2.3

Participations in associated companies

 

0.3

0.3

Other financial investments

 

0.3

0.2

Total

 

17.3

17.4

7.Intangible Assets

CHF millions

 

 

 

 

 

Software

Software in Development

Other Intangible Assets

Total

Acquisition Value

 

 

 

 

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

As per 1.1.2022

54.3

0.3

1.3

55.9

Additions

0.1

0.4

0.5

Disposals

– 1.6

– 1.6

Reclassifications

0.1

– 0.1

Foreign exchange differences

– 0.1

– 0.1

As per 31.12.2022

52.8

0.6

1.3

54.7

Accumulated Amortisation

 

 

 

 

As per 1.1.2021

48.1

1.1

49.2

Ordinary amortisation

2.2

2.2

Disposals

– 0.2

– 0.2

As per 1.1.2022

50.1

1.1

51.2

Ordinary amortisation

1.8

1.8

Disposals

– 1.6

– 1.6

As per 31.12.2022

50.3

1.1

51.4

 

 

 

 

 

Book Value

 

 

 

 

As per 1.1.2022

4.2

0.3

0.2

4.7

As per 31.12.2022

2.5

0.6

0.2

3.3

In 2021 and 2022 there were no licenses, patents and trademarks.

8.Financial Debts

CHF millions

31.12.2022

31.12.2021

 

 

 

Residual period

 

 

– < 1 year*

10.2

11.5

– 1 to 2 years**

2.9

7.9

– 3 to 5 years***

69.9

5.6

– > 5 years****

95.8

12.5

Total

178.8

37.5

* in CHF; interest rate between 0.70% to 7.20% (2021: 0.65 to 1.85%)

** in CHF; interest rate between 7.18% to 7.20% (2021: 0.70% to 3.25%)

*** in CHF; interest rate between 1.00% to 3.58% (2021: 4.60% to 6.00%)

**** in CHF; interest rate between 0.77% to 3.78% (2021: 0.99%)

9.Other Short-Term Liabilities

CHF millions

31.12.2022

31.12.2021

 

 

 

Prepaid recycling fee

5.3

5.4

Advance payments

2.6

1.8

Liabilities to employees

6.8

6.5

Other short-term liabilities

11.2

13.5

Total

25.9

27.2

10.Accrued expenses and deferred income

CHF millions

31.12.2022

31.12.2021

 

 

 

Ongoing liable income taxes

5.6

6.8

Unclaimed vacations and overtime compensations

7.8

7.5

Other accrued expenses and deferred income

18.4

16.6

Total

31.8

30.9

11.Provisions

CHF millions

 

 

 

 

 

 

Service Anniversary

Pensions

Deferred Tax Liabilities

Other

Total

As per 1.1.2021

5.9

14.5

15.2

2.6

38.2

Reclassifications

Additions

0.8

1.8

1.8

7.8

12.2

Releases

– 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 1.1.2022

6.2

12.9

15.8

3.8

38.7

Reclassifications

Additions

0.3

2.8

1.8

6.5

11.4

Releases

– 0.6

– 0.4

– 1.7

– 1.0

– 3.7

Utilisations

– 0.3

– 2.3

– 3.0

– 5.6

Foreign exchange differences

– 0.3

– 0.7

– 0.6

– 0.2

– 1.8

As per 31.12.2022

5.3

12.3

15.3

6.1

39.0

Of which short-term

0.6

6.1

6.7

Of which long-term

4.7

12.3

15.3

32.3

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 13% (2021: 0% to 11%) as per balance sheet date.

12.Share Capital

The share capital is structured as follows:

CHF millions

31.12.2022

31.12.2021

 

 

 

13 774 000 Registered shares A (2021: 13 774 000) nominal value CHF 1.00 (2021: CHF 1.00) (issued and paid in full)

13.8

13.8

30 250 000 Registered shares B (2021: 30 250 000) nominal value CHF 0.20 (2021: 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 36.10 (2021: CHF 57.60) total capitalisation is CHF 715.6 million (2021: CHF 1,141.9 million). Each registered share has one voting right.

Major Shareholders with > 3% of Voting Rights

 

31.12.2022

31.12.2021

 

 

 

Shareholder group Cornaz according to latest SIX publication

71.6%

71.6%

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

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 supplying Country

CHF millions

 

 

 

 

Change

2022

2021

Glass Packaging

 

 

 

– Switzerland

14.3%

91.3

79.9

– Austria

10.4%

242.2

219.4

– Czech Republic

5.1%

83.8

79.7

– Croatia

25.6%

167.3

133.2

– Slovakia

29.7%

82.5

63.6

– Ukraine

– 77.4%

14.3

63.4

– Italy

11.2%

128.5

115.6

– Republic of Moldova

50.6%

75.3

50.0

Speciality Glass (Switzerland)

21.4%

14.2

11.7

Total

10.2%

899.4

816.5

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

CHF millions

2022

2021

 

 

 

Material and energy sales

5.8

3.2

Ancillary services

1.5

1.7

Real estate management income

0.6

0.6

Internally produced additions to plant and equipment

1.8

2.5

Supplier commissions

0.5

1.1

Allocations disposal fees

2.2

2.2

Income from subsidies

9.4

0.4

Other income

3.9

3.5

Total

25.7

15.2

15.Material expenses

CHF millions

2022

2021

 

 

 

Raw material

121.0

116.6

Merchandise

14.6

11.6

Total

135.6

128.2

16.Energy expenses

Despite the lower production volume, energy expenses increased by CHF 108.7 million (75.7 percent) in 2022 compared to 2021. This is due to the very volatile and, on average, sharp rise in prices for natural gas and electricity in the year under review.

17.Personnel Expenses

CHF millions

2022

2021

 

 

 

Wages and salaries

133.4

137.5

Social benefits

38.1

39.7

Other personnel expenses

6.1

6.5

Total

177.6

183.7

 

Change

31.12.2022

31.12.2021

 

 

 

 

Workforce

– 8.6%

3 561

3 896

18.Other Operating Expenses

CHF millions

2022

2021

 

 

 

Maintenance and repairs

36.2

34.6

Mould costs

6.7

8.3

Packaging material

38.3

34.2

Transport costs

56.8

54.4

Other administrative and operating expenses

79.6

71.4

Total

217.6

202.9

19. Financial Result

CHF millions

2022

2021

 

 

 

Interest income

0.5

0.8

Interest expenses

– 4.4

– 1.5

Currency exchange gains

23.9

5.3

Currency exchange losses

– 27.7

– 11.1

Other financial income

Total

– 7.7

– 6.5

20.Non-Operating Result

CHF millions

2022

2021

 

 

 

Non-operating real estate income

2.8

2.7

Non-operating real estate expenses

– 1.1

– 1.2

Non-operating real estate depreciation/impairments

– 0.9

– 0.9

Other non-operating income/expenses

– 0.7

0.2

Total

0.1

0.8

21.Extraordinary Result

This position includes impairments on receivables (CHF 0.3 million), inventories (CHF 7.5 million) and fixed assets (CHF 15.6 million) of the glass factory in Ukraine. Furthermore, costs of CHF 8.0 million incurred in 2022 for clean-up and re-repair work in the glassworks Gostomel are included.

22.Income Taxes

CHF millions

2022

2021

 

 

 

Ongoing income taxes

9.9

12.1

Deferred income taxes

– 0.5

Total

9.4

12.1

Loss carryforwards amounted to CHF 8.0 million (2021: CHF 9.0 million) in total at the end of the reporting year. No loss carryforwards were included in the calculation of the deferred income tax assets (2021: CHF 0.0 million). The impact on the tax on earnings of unrecognised loss carryforwards was CHF 3.9 million in the reporting year (2021: CHF 2.2 million). In the reporting year CHF 2.8 million unrecognised loss carryforwards were used (2021: CHF 6.0 million). There was an impact of CHF -0.7 million in the reporting year on income taxes due to the use of unrecognized losses carried forward (2021: CHF -1.1 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% (2021: 11.6% to 25.0%). The weighted average tax rate to be applied based on the ordinary result is 17.5% (2021: 19.1%).

23.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.

 

2022

2021

 

 

 

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

40.7

63.8

 

 

 

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

2.05

3.22

Undiluted result per registered share B in CHF

0.41

0.64

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.

24.Investments Tangible Assets

Investments by Asset Class

CHF millions

2022

2021

 

 

 

Real Estate & Buildings Non-operating

0.1

Real Estate & Buildings operating

0.2

2.2

Furnaces Equipment, Prod. Facilities, Moulds

8.5

21.2

Other Tangible Assets

1.5

2.2

Advance Payments & Assets Under Construction

183.8

92.6

Total

194.1

118.2

25.Off Balance Sheet Transactions

CHF millions

31.12.2022

31.12.2021

 

 

 

Letters of comfort

2.7

2.7

Guarantees*

291.5

7.9

Off balance sheet leasing

2.0

2.4

Total

296.2

13.0

* As of 31 December 2022, CHF 137.9 million had not been used as a loan by the guarantee holder.

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

31.12.2022

31.12.2021

 

 

 

Maturity

 

 

– 1 to 2 years

0.8

0.9

– 3 to 5 years

1.2

1.1

– > 5 years

0.4

Total

2.0

2.4

26.Pledged Assets

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

CHF millions

31.12.2022

31.12.2021

 

 

 

Accounts receivables

27.1

18.0

Inventories

6.9

7.3

Real estate

56.1

59.0

Total

90.1

84.3

27.Derivative Financial Instruments

As at 31 December 2022, Vetropack Holding Ltd has open currency swaps in the amount of EUR 64.0 million (CHF 63.0 million) with a negative market value of CHF 73.600.

28.Transactions with Related Parties

CHF millions

31.12.2022

31.12.2021

Pension Funds

 

 

Accounts receivables

Accounts payables

0.1

0.1

Interest expenses

Associated Companies

 

 

Accounts receivables

Accounts payables

0.9

1.0

Capitalised services

Service income

Equity income

Glass cullet purchasing expenses

– 4.4

– 4.6

Maintenance and repairs expenses

Other service expenses

Equity valuation expenses

Other Closely Associated Persons

 

 

Accounts receivables

Accounts payables

0.2

Investments in tangible assets

Distribution income

Service income

Packaging material expenses

– 0.4

Distribution expenses

Service expenses

– 0.1

– 0.1

Interest expenses

Tangible assets/material sales

1.0

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.

29.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

2022

2021

 

 

 

Nominal value 31.12.

12.4

13.1

Utilisation waiver 31.12.

Other value adjustments 31.12.

Discounting effects 31.12.

– 0.5

– 0.6

Book value 31.12.

11.8

12.5

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 31.12.2022

13.8

77.8

91.6

Economic utilisation/liabilities 31.12.2021

– 10.3

– 10.3

Economic utilisation/liabilities 31.12.2022

– 9.7

– 9.7

Changes 2022

– 0.6

– 0.6

Contributions restricted to the period*

0.6

2.6

2.6

5.8

Pension expenses 2021

– 0.2

2.5

0.5

2.8

Pension expenses 2022

0.6

2.6

2.0

5.2

* 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

2022

2021

 

 

 

Key influential factors

 

 

– Changes in employer's contribution reserves

0.7

– 0.2

– Changes in economic utilisation / liabilities

– 0.6

– 1.5

– Pension fund contributions

5.1

4.5

Total Pension Fund Expenses

5.2

2.8

30.Acquisition

The total consideration includes a fixed purchase price component of CHF 44.4 million for the acquisition of the Moldovan glass factory in Chișinău and further payments dependent on future results, which as of 31.12.2021 is estimated at CHF 14.1 million. There was no change in the estimate as of 31.12.2022.

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

2022

2021

 

 

 

Theoretical goodwill

 

 

Gross book value as at 1.1.

44.8

34.4

Addition from acquisition

10.4

Gross book value as at 31.12.

44.8

44.8

Accumulated amortisation as at 1.1.

– 22.9

– 17.3

Amortisation

– 5.6

– 5.6

Accumulated amortisation as at 31.12.

– 28.5

– 22.9

Net book value as at 1.1.

21.9

17.1

Net book value as at 31.12.

16.3

21.9

 

 

 

Effect on Balance Sheet

 

 

Sharholders' Equity according to Balance Sheet

749.3

774.5

Theoretical capitalisation of net book value of goodwill

16.3

21.9

Theoretical Shareholders' Equity incl. net book value of goodwill

765.6

796.4

 

 

 

Effect on Income Statement

 

 

Consolidated Profit

40.7

63.8

Amortisation goodwill

– 5.6

– 5.6

Theoretical Consolidated Profit incl. amortization of goodwill

35.1

58.2

31.Events after the Balance Sheet Date

No events occurred between 31 December 2022 and 8 March 2023 (approval of the consolidated annual report by the Board of Directors) that would result in an adjustment to the carrying amounts of assets and liabilities or would need to be disclosed here.