Management report

In 2025, the Vetropack Group achieved net sales of CHF 778.9 million, a 7.5 percent decrease from the previous year (–5.9 currency-adjusted). Following a persistently challenging market situation with price pressure and generally lower sales in the first half, the stabilisation that emerged in the middle of the year was not sustainable. The second half of the year was also characterised by overcapacity in the market, combined with shifts in the product mix. These general trends also impacted Vetropack. Throughout the year, net sales from glass packaging for beverages weakened, while those for food packaging remained stable.

Key figures for the 2025 financial year

The operating result for 2025 reached CHF 21.6 million, a decrease from CHF 34.3 million in the previous year. Vetropack responded to adverse price and mix effects with measures to adjust capacity as well as disciplined cost management. However, with the high proportion of fixed costs typical for the industry, margin pressure could only be partially mitigated.

One-off expenses related to the closure of the production site in St-Prex and asset valuation adjustments had a negative impact on the 2025 operating result of CHF 15.9 million. This includes CHF 4.7 million for glass recycling and an additional CHF 2.5 million associated with the discontinuation of production at the Swiss site in St-Prex in 2024, as well as CHF 8.7 million for the temporary shutdown of a furnace and valuation adjustments at the Moldovan site in Chișinău.

Excluding these effects, the adjusted operating result for 2025 reached CHF 37.5 million, down from CHF 58.6 million in the previous year. While the reported operating margin declined by 1.3 percentage points year‑on‑year, the adjusted operating margin fell by 2.2 percentage points.

Vetropack halved its financing costs compared to the previous year thanks to optimised financing and lower exchange rate effects. As Vetropack does not capitalise loss carry-forwards, the tax burden relative to pre-tax profit is higher in 2025 than in the previous year. With higher non-operating and extraordinary expenses, the consolidated net profit for 2025 reached CHF 3.8 million or CHF 0.19 per registered share class A.

Continuing site development

With production volumes remaining stable, Vetropack continued to implement measures for site development and capacity adjustment and optimisation in 2025. The site in Chișinău is fully dependent on high-priced energy imports from Western Europe, making cost-effective production increasingly challenging. As a result, one of the two furnaces was temporarily shut down in December 2025.

Following the closure of the St-Prex production site in Switzerland, all remaining machinery was either relocated to other Vetropack sites or sold in 2025. At the Ukrainian site in Hostomel near Kiev, the second furnace was brought back into operation in mid-2025 after being repaired under extremely difficult conditions.

In January 2026, that is after the balance sheet date, Vetropack announced the consolidation and modernisation of two furnaces at the Kremsmünster site and, in this context, the early decommissioning of one of the three furnaces.

Cash flows, investments, and financing

Cash flow from operating activities was CHF 107.4 million in 2025, down 20.9 percent from the previous year, partially due to changes in net working capital. Among other things, Vetropack increased its inventory levels as part of capacity adjustments to ensure supply readiness.

Investments in tangible assets totalled CHF 53.2 million in 2025, with the largest individual investments being the modernisation of energy systems at several sites. This includes a third photovoltaic system at the Croatian site Hum na Sutli, which will generate approximately 1,900 MWh of electricity annually, as well as the establishment of a production line for lightweight glass bottles at the Pöchlarn site in Austria.

Following inflows from short-term financial liabilities amounting to CHF 28.3 million, the cash and cash equivalents reached CHF 96.8 million at the end of the year, up from CHF 68.2 million at the beginning of the year.

Innovation and sustainability

As a financially stable company with over 60 percent equity financing, Vetropack continued its efforts to position itself as an industry leader in the glass packaging sector through innovation and sustainability in the reporting year. The commissioning of a new production line for lightweight glass bottles planned for 2026 marks a significant milestone on the path to serial production. Following the successful market entry in Austria’s brewing industry, Vetropack sees potential for applications in additional product groups and markets.

The product will be marketed under the Rezon brand, which was launched and introduced in September 2025. The proprietary technology developed by Vetropack saves up to 30 percent in weight compared to conventional reusable bottles, while at the same time offering high durability and a long product life span. It has received multiple awards, most recently in 2025 the WorldStar Award from the World Packaging Organisation in the ‘Alcoholic Beverages’ category and a Special Award for ‘Sustainability’.

Building on systematic preliminary work, Vetropack is publishing its first Sustainability report in line with the European Sustainability Reporting Standards (ESRS) with this Annual report. Although the European Parliament has postponed the mandatory application of these standards, early implementation allows for a better understanding of material impacts, risks, and opportunities, as well as identifying existing gaps for further improvements in environmental management.

Outlook

In the face of continuing geopolitical uncertainties and a challenging market environment with pressure on margins, Vetropack remains focused on customer needs, cost discipline, and strict investment control (including for ongoing operational improvements), in order to enable more agile responses to the rapidly changing market conditions.

Due to continued price pressure, Vetropack expects net proceeds in 2026 to be below the previous year’s level, with sales volumes remaining stable. The operating result margin is expected to be slightly higher as a result of the measures that have been introduced. Planned investments in tangible assets in 2026 are in line with the previous year’s level. However, the current developments in the Persian Gulf and in the Middle East is creating additional uncertainty with increased price volatility in energy markets. The impact of these developments on Vetropack’s financial performance is currently impossible to assess and requires a high degree of adaptability.

With the CEO change completed at the beginning of 2026, Vetropack is reviewing its existing strategy, primarily to define additional initiatives for profitable growth and further strengthen its future viability. It is currently planned to communicate the conclusions of this process with the presentation of the Semi-annual report on 21 August 2026, and to provide deeper insights at a Capital Market Day. By doing so, Vetropack also aims to take another step forwards in improving its capital market communication.

Based on the company’s earnings situation, the Board of Directors proposes to the 57th Annual General Meeting of Vetropack Holding AG on 22 April 2026, to pay out a dividend of CHF 0.50 (2024: CHF 1.00) per class A registered share and CHF 0.10 (2024: CHF 0.20) per class B registered share.