Consolidation principles

Basis for the Consolidated financial statements

The consolidation of the Group’s financial statements provides an actual picture of the Group’s assets, financial and income situation, and considers the Vetropack Group as a single business entity for this purpose.

Consolidated Group statements are based on financial statements for the year and are prepared in accordance with the national laws applicable to each of the companies concerned. They are then restated in accordance with the Group's internal valuation and formatting principles. Financial statements conform to the principles of Swiss GAAP FER in addition to accounting prescriptions set out in regulations for companies listed on the Swiss Stock Exchange.

The revised version of Swiss GAAP FER 30 ‘Consolidated Financial Statements’ is to be applied from 1 January 2024. The effects on the annual financial statements relate only to the presentation in the Consolidated statement of changes in equity, in which the foreign currency translation differences are now shown separately. There is no retrospective implementation of the new regulations on offsetting goodwill against equity.

Consolidation scope

Consolidated Group statements include Vetropack Holding Ltd as well as all domestic and foreign subsidiaries in which Vetropack Holding Ltd has a direct or indirect interest of more than 50%. In such cases, the 'full consolidation method' is applied, i.e. assets, liabilities, expenses and incomes of consolidated companies are consolidated 100%, whereby all material intra-Group transactions are eliminated (accounts receivable and payable, income and expenses, and intermediate gains).

Minority shareholders’ interests are recognised separately in the balance sheet and income statement.

Holdings of between 20% and 50% are included in Group accounts according to the ‘equity method’. The Group’s percentage share of net assets is reported in the balance sheet under ‘Financial assets’. Percentage share of net income is stated in the Consolidated income statement.

Holdings below 20% are posted in the consolidated balance sheet at acquisition cost less any necessary value adjustments.

An overview of companies within the Vetropack Group and methods used to consolidate them into Group financial statements is available here.

Capital consolidation

Capital consolidation is carried out according to the ‘purchase method’, whereby the acquisition cost of an acquired company is charged against its net assets revaluated according to Group principles at the time of purchase. Any goodwill paid at the time of acquisition is charged directly to the Group’s retained earnings in the acquisition year. If control of subsidiaries is lost, foreign currency translation differences are recognised in profit or loss. In the 2024 fiscal year, there was no loss of control of subsidiaries, which is why no foreign currency translation differences were recognised in profit or loss.

Foreign exchange (FX) differentials

Financial statements produced by foreign companies within the Group in their respective currencies are converted into Swiss francs as follows:

• Balance sheet figures: according to the exchange rate valid at year’s end.
• Income statement figures: according to the average annual exchange rate.
• Cash flow statement figures: according to average and year-end rates respectively.

Exchange rate differentials resulting from such foreign currency conversions are charged to retained earnings with no effect on net income. Exchange rate differentials caused by converting transactions and balance sheet items in foreign currencies are recorded in the books of the respective Group company with effect on net income. Foreign exchange rate effects on long-term intra-Group loans with the nature of shareholders’ equity are recorded in the Consolidated shareholders’ equity, not affecting net income.