Vetropack - Integrated annual report 2023

1.Accounts receivable

1. Accounts receivable

CHF millions	31.12.2023	31.12.2022

Gross receivables	145.7	184.9
Value adjustments	– 4.4	– 5.9
Net receivables	141.3	179.0

2.Other short-term receivables

2. Other short-term receivables

CHF millions	31.12.2023	31.12.2022

VAT (value added tax) credit	25.2	20.4
Withholding tax credit	3.2	2.2
Other short-term receivables	7.6	8.7
Total	36.0	31.3

3. Inventories

CHF millions	31.12.2023	31.12.2022

Raw materials	20.0	17.1
Materials and supplies	64.3	58.9
Work-in-progress	11.9	4.9
Finished goods, merchandise	151.7	115.4
Advance payments to suppliers	1.0	0.7
Value adjustments	– 51.0	– 41.5
Total	197.9	155.5

4.Prepaid expenses and accrued income

4. Prepaid expenses and accrued income

CHF millions	31.12.2023	31.12.2022

Ongoing income tax (credit)	2.9	2.9
Other prepaid expenses and accrued income	1.2	3.3
Total	4.1	6.2

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	Advance payments & assets under construction	Total
Acquisition value
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 1.1.2023	52.4	304.5	899.1	39.6	261.2	1 556.8
Additions	4.9	109.8	211.0	4.2	– 94.8	235.1
Disposals	–	– 0.4	– 46.1	– 3.0	– 0.2	– 49.7
Reclassifications	–	1.8	14.7	0.7	– 17.2	–
Foreign exchange differences	– 0.3	– 20.5	– 59.5	– 1.9	– 11.3	– 93.5
As per 31.12.2023	57.0	395.2	1 019.2	39.6	137.7	1 648.7
Accumulated depreciation
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
Reclassifications	–	–	–	–	–	–
Asset impairments 1	–	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 1.1.2023	14.7	191.2	655.7	32.9	0.7	895.2
Ordinary depreciation	0.9	7.6	62.5	2.3	–	73.3
Disposals	–	– 0.4	– 45.1	– 3.0	–	– 48.5
Asset impairments 1	–	–	1.5	–	–	1.5
Release asset impairments 2	–	– 0.4	– 1.6	– 0.2	– 0.3	– 2.5
Foreign exchange differences	–	– 9.2	– 37.7	– 1.4	–	– 48.3
As per 31.12.2023	15.6	188.8	635.3	30.6	0.4	870.7

Book value
As per 1.1.2023	37.7	113.3	243.4	6.7	260.5	661.6
As per 31.12.2023	41.4 3	206,4 3	383.9	9.0	137,3 4	778.0

1 of which in 2023 CHF 0.7 million relates to the Ukrainian production plant in Gostomel, which were reported in the extraordinary result (2022: CHF 15.6 million) as well as CHF 0.8 million to the closed Italian production plant in Trezzano

2 of which in 2023 CHF 2.5 million relates to the Ukrainian production plant in Gostomel, whereof CHF 0.6 million were reported in the extraordinary result

3 of which vacant real estate plots valued at CHF 3.7 million (2022: CHF 18.8 million)

4 of which payments on assets under construction CHF 8.9 million (2022: CHF 5.6 million)

6.Financial assets

6. Financial assets

CHF millions	Note	31.12.2023	31.12.2022

Assets from employer's contribution reserves	28	11.7	11.8
Assets from pension plans		2.0	2.1
Deferred taxes	21	6.1	2.8
Participations in associated companies		0.3	0.3
Other financial investments		0.2	0.3
Total		20.3	17.3

7.Intangible assets

7. Intangible assets

CHF millions
	Software	Software in development	Other intangible assets	Total
Acquisition value
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 1.1.2023	52.8	0.6	1.3	54.7
Additions	0.1	2.1	0.1	2.3
Disposals	–	–	–	–
Reclassifications	1.2	– 1.2	–	–
Foreign exchange differences	– 0.2	–	– 0.1	– 0.3
As per 31.12.2023	53.9	1.5	1.3	56.7
Accumulated amortisation
As per 1.1.2022	50.1	–	1.1	51.2
Ordinary amortisation	1.8	–	–	1.8
Disposals	– 1.6	–	–	– 1.6
As per 1.1.2023	50.3	–	1.1	51.4
Ordinary amortisation	1.6	–	–	1.6
Disposals	–	–	–	–
Foreign exchange differences	– 0.3	–	–	– 0.3
As per 31.12.2023	51.6	–	1.1	52.7

Book value
As per 1.1.2023	2.5	0.6	0.2	3.3
As per 31.12.2023	2.3	1.5	0.2	4.0

In 2022 and 2023 there were no licenses, patents and trademarks.

8.Financial debts

8. Financial debts

CHF millions	31.12.2023	31.12.2022

Residual period
– < 1 year 1	3.3	10.2
– 1 to 2 years 2	2.9	2.9
– 3 to 5 years 3	207.1	69.9
– > 5 years 4	42.4	95.8
Total	255.7	178.8

1 in CHF; interest rate between 1.00% and 14.00% (2022: 0.70% to 7.20%)

2 in CHF; interest rate between 2.17% and 2.17% (2022: 7.18% to 7.20%)

3 in CHF; interest rate between 1.00% and 4.97% (2022: 1.00% to 3.58%)

4 in CHF; interest rate between 0.77% and 5.07% (2022: 0.77% to 3.78%)

9.Other short-term liabilities

9. Other short-term liabilities

CHF millions	31.12.2023	31.12.2022

Prepaid recycling fee	4.5	5.3
Advance payments from customers	1.4	2.6
Liabilities to employees	7.2	6.8
Other short-term liabilities	13.8	11.2
Total	26.9	25.9

10.Accrued expenses and deferred income

10. Accrued expenses and deferred income

CHF millions	31.12.2023	31.12.2022

Ongoing income taxes liabilities	7.7	5.6
Accruals for personnel	12.9	13.2
Other accrued expenses and deferred income	13.5	13.0
Total	34.1	31.8

11.Provisions

11. Provisions

CHF millions
	Service anniversaries	Pension liability	Deferred tax liabilities	Other	Total
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 1.1.2023	5.3	12.3	15.3	6.1	39.0
Reclassifications	–	–	–	–	–
Additions	0.7	1.7	0.4	4.9	7.7
Releases	– 0.1	– 0.8	0.3	– 0.7	– 1.3
Utilisations	– 0.1	– 1.8	–	– 6.1	– 8.0
Foreign exchange differences	– 0.3	– 0.7	– 0.8	– 0.2	– 2.0
As per 31.12.2023	5.5	10.7	15.2	4.0	35.4
Of which short-term	0.8	–	–	4.0	4.8
Of which long-term	4.7	10.7	15.2	–	30.6

Deferred tax liabilities: details see here.

Service anniversaries: provisions are formed in respect of remuneration for long service to the company as defined in the Employment Regulations. These provisions, which takes account of country-specific corrective factors for the staff turnover, were discounted at rates from 1% to 19% (2022: 0% to 13%) as per the balance sheet date.

12.Share capital

12. Share capital

The share capital is structured as follows:

CHF millions	31.12.2023	31.12.2022

13 774 000 registered shares A (2022: 13 774 000) nominal value CHF 1.00 (2022: CHF 1.00) (issued and paid in full)	13.8	13.8
30 250 000 registered shares B (2022: 30 250 000) nominal value CHF 0.20 (2022: 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 39.10 (2022: CHF 36.10) total capitalisation is CHF 775.1 million (2022: CHF 715.6 million). Each registered share has one voting right.

Major shareholders with > 3% of voting rights

	31.12.2023	31.12.2022

Cornaz shareholder group according to latest SIX notification	71.6%	71.6%

One shareholders’ agreement exists between the shareholders of Cornaz AG-Holding, and 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 “Speciality glass” segment only comprises trade revenue in Switzerland (Müller + Krempel Ltd). Until the end of 2022, the net sales was shown broken down by country. The change in the presentation of segment reporting for 2023 was made to correspond to the segments reporting at corporate management level.

Net sales by supplying country

CHF millions
	Change	2023	2022
Glass packaging
– Switzerland, Austria	1.5%	338.5	333.5
– Czech Republic, Slovakia	– 3.5%	160.5	166.3
– Croatia	11.4%	186.4	167.3
– Ukraine, Republic of Moldova	– 6.2%	84.0	89.6
– Italy	– 9.6%	116.1	128.5
Speciality glass (Switzerland)	– 6.3%	13.3	14.2
Total	– 0.1%	898.8	899.4

The Vetropack Group does not publish details of its segment results, because there is a significant risk that this could cause competitive disadvantages. The markets in which Vetropack's Business Units operate are narrow niche sectors with small number of 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	2023	2022

Material and energy sales	4.7	5.8
Ancillary services	0.7	1.5
Real estate management income	0.6	0.6
Internally produced additions to plant and equipment	3.3	1.8
Supplier commissions	0.5	0.5
Allocations of disposal fees	1.8	2.2
Income from subsidies	6.2	9.4
Other income	6.3	3.9
Total	24.1	25.7

15.Material expenses

15. Material expenses

CHF millions	2023	2022

Raw materials	134.7	121.0
Merchandise	12.6	14.6
Total	147.3	135.6

16.Personnel expenses

16. Personnel expenses

CHF millions	2023	2022

Wages and salaries	144.6	133.4
Social benefits	39.0	38.1
Other personnel expenses	7.3	6.1
Total	190.9	177.6

17.Other operating expenses

17. Other operating expenses

CHF millions	2023	2022

Maintenance, repairs and mould costs	49.5	42.9
Packaging and transport costs	80.6	95.1
Other administrative and operating expenses	86.9	79.6
Total	217.0	217.6

18. Financial result

CHF millions	2023	2022

Interest income	1.0	0.5
Interest expenses	– 8.9	– 4.4
Currency exchange gains	13.9	23.9
Currency exchange losses	– 17.0	– 27.7
Other financial income	0.1	–
Total	– 10.9	– 7.7

19.Non-operating result

19. Non-operating result

CHF millions	2023	2022

Non-operating real estate income	2.6	2.8
Non-operating real estate expenses	– 1.2	– 1.1
Non-operating real estate depreciation/impairments	– 0.9	– 0.9
Other non-operating result	– 1.3	– 0.7
Total	– 0.8	0.1

20.Extraordinary result

20. Extraordinary result

For 2023, costs of CHF 1.5 million for clean-up and repair work at the Gostomel glass factory and impairments of fixed assets of the glass factory in Ukraine of CHF 0.1 million are included. In addition, value adjustments on receivables of CHF 0.7 million were released. Additionally income of CHF 0.4 million in connection with flat-rate tax credits is included (2022: CHF 0.0 million).

In 2022 this position included 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 repair work at the Gostomel glass factory were included.

21.Income taxes

21. Income taxes

CHF millions	2023	2022

Ongoing income taxes	18.5	9.9
Deferred income taxes	– 2.7	– 0.5
Total	15.8	9.4

Loss carryforwards amounted to CHF 57.7 million (2022: CHF 8.0 million) in total at the end of the reporting year. No loss carryforwards were included in the calculation of the deferred income tax assets (2022: CHF 0.0 million). The impact of unrecognised loss carryforwards on the tax on earnings was CHF 11.6 million in the reporting year (2022: CHF 3.9 million). No unrecognised loss carryforwards were utilised in the reporting period (2022: CHF 2.8 million). There was no impact in the reporting year on income taxes due to the use of unrecognized losses carried forward (2022: CHF –0.7 million). In the reporting year, as in the previous year, there was no impact due to the utilisation or expiry of loss carryforwards.

The country-specific tax rates that apply to the calculation of the deferred taxes on earnings range from 11.6% to 24.0% (2022: 11.6% to 25.0%). The weighted average tax rate to be applied based on the ordinary result is 16.5% (2022: 17.5%).

In December 2021, the OECD published the Pillar Two model rules to introduce a global minimum tax of 15% for multinational companies with consolidated revenues of more than EUR 750 million. Meanwhile, relevant elements of Pillar Two legislation have been substantively enacted in many jurisdictions in which Vetropack operates including Switzerland. Such legislation will be effective for Vetropack’s financial year beginning on 1 January 2024. Due to uncertainties in the adjustment and implementation of local tax laws in the countries concerned, it is not yet possible to quantify the effects. Vetropack is monitoring the development of the Pillar Two rules and continually assesses the impact.

22.Results per participation right

22. 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.

	2023	2022

Consolidated profit allocated to the shareholders of the Vetropack Group in CHF millions	63.3	40.7

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	3.19	2.05
Undiluted result per registered share B in CHF	0.64	0.41

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.

23.Investments in tangible assets

23. Investments in tangible assets

Investments by asset class

CHF millions	2023	2022

Real estate & buildings non-operating	4.9	0.1
Real estate & buildings operating	109.8	0.2
Furnaces, equipment, prod. facilities, moulds	211.0	8.5
Other tangible assets	4.2	1.5
Advance payments & assets under construction	– 94.8	183.8
Total	235.1	194.1

24.Off-balance-sheet transactions

24. Off-balance-sheet transactions

CHF millions	31.12.2023	31.12.2022

Guarantees 1	276.7	294.2
Off-balance-sheet leasing liabilities	5.8	2.0
Total	282.5	296.2

1 of which CHF 37.0 million (2022: CHF 137.9 million) had not been used as a loan by the guarantee holder as of 31 December 2023

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	31.12.2023	31.12.2022

Maturity
– 1 to 2 years	3.5	0.8
– 3 to 5 years	2.3	1.2
– > 5 years	–	–
Total	5.8	2.0

25.Pledged assets

25. Pledged assets

Assets are used as collateral to secure bank credits and mortgages at the following book values:

CHF millions	31.12.2023	31.12.2022

Accounts receivable	12.6	27.1
Inventories	–	6.9
Real estate	16.5	56.1
Total	29.1	90.1

26.Derivative financial instruments

26. Derivative financial instruments

As at 31 December 2023, Vetropack Holding Ltd has currency swaps in the amount of EUR 61.1 million (CHF 56.6 million) (2022: EUR 64.0 million, CHF 63.0 million) with a negative market value of CHF 1.1 million (2022: CHF 0.1 million).

27.Transactions with related parties

27. Transactions with related parties

CHF millions	31.12.2023	31.12.2022
Pension funds
Accounts receivable	–	–
Accounts payable	–	0.1
Interest expenses	–	–
Associated companies
Accounts receivable	–	–
Accounts payable	0.7	0.9
Capitalised services	–	–
Service income	–	–
Equity valuation income	–	–
Glass cullet purchasing expenses	– 4.2	– 4.4
Maintenance and repair expenses	–	–
Other service expenses	–	–
Equity valuation expenses	–	–
Other closely associated persons
Accounts receivable	–	–
Accounts payable	–	–
Investments in tangible assets	–	–
Distribution income	–	–
Service income	–	–
Packaging material expenses	–	–
Distribution expenses	–	–
Service expenses	–	– 0.1
Interest expenses	–	–
Proceeds from 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.

28.Employee pension provision

28. Employee pension provision

Various employee pension schemes based on the statutory regulations of their respective countries, are in place within the Group. In Switzerland, these are defined contribution plans 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 institutions

CHF millions	2023	2022

Nominal value 31.12.	12.4	12.4
Utilisation waiver 31.12.	–	–
Other value adjustments 31.12.	–	–
Discounting effects 31.12.	– 0.7	– 0.5
Book value 31.12.	11.7	11.8

Assets and liabilities from pension institutions

CHF millions
	Patronage pension institutions	Pension institutions without surplus / deficit	Pension institutions with surplus	Pension institutions without own assets	Total
Surplus / deficit cover 31.12.2023	10.8	–	39.6	–	50.4
Economic share of the entity 31.12.2022	–	–	–	– 9.7	– 9.7
Economic share of the entity 31.12.2023	–	–	–	– 8.2	– 8.2
Change 2023	–	–	–	– 1.5	– 1.5
Contributions concerning the current period 1	0.2	–	2.6	1.3	4.1
Pension benefit expenses 2022	0.6	–	2.6	2.0	5.2
Pension benefit expenses 2023	0.2	–	2.6	– 0.2	2.6

1 including changes from employer's contribution reserves

The values for pension funds of Swiss companies are based on the relevant 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	2023	2022

Key influential factors
– Change in employer's contribution reserves	0.1	0.7
– Change in economic share of the entity	– 1.5	– 0.6
– Contributions concerning the current period	4.0	5.1
Total pension fund expenses	2.6	5.2

29.Goodwill

29. Goodwill

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	2023	2022

Theoretical goodwill
Gross book value as at 1.1.	44.8	44.8
Addition from acquisition	–	–
Gross book value as at 31.12.	44.8	44.8
Accumulated amortisation as at 1.1.	– 28.5	– 22.9
Amortisation	– 5.6	– 5.6
Accumulated amortisation as at 31.12.	– 34.1	– 28.5
Net book value as at 1.1.	16.3	21.9
Net book value as at 31.12.	10.7	16.3

Effect on balance sheet
Shareholders' equity according to balance sheet	750.7	749.3
Theoretical capitalisation of net book value of goodwill	10.7	16.3
Theoretical shareholders' equity incl. net book value of goodwill	761.4	765.6

Effect on income statement
Consolidated profit	63.3	40.7
Amortisation of goodwill	– 5.6	– 5.6
Theoretical consolidated profit incl. amortization of goodwill	57.7	35.1

30.Events after the balance sheet date

30. Events after the balance sheet date

On 7 March 2024 Vetropack Group has announced that it will start a consultation process on the future of its production site in St-Prex. The consultation process hat not been completed when the consolidated annual report was approved by the Board of Directors. Further information can be found in the corresponding ad hoc announcement.

Notes