Vetropack, the Swiss glass packaging manufacturer, reported a 2.0% year-on-year decline in first-half revenue to CHF 404.6 million, reflecting challenging market conditions despite a 0.7% increase on a currency-adjusted basis.
The company’s adjusted earnings before interest and taxes (EBIT) fell 27% to CHF 16.6 million, while the adjusted EBIT margin contracted to 4.1% from 5.5% in the prior-year period. Vetropack attributed the decline to sustained price pressure from overcapacity, elevated energy and transport costs, and a weaker operating environment.
Cost-cutting measures, including an 8% reduction in headcount, helped mitigate some of the financial impact, though the net profit halved to CHF 4.8 million. Analysts surveyed by AWP had anticipated a slightly lower revenue figure, while the adjusted EBIT broadly aligned with expectations.
The company revised its full-year 2026 outlook upward, now projecting higher sales volumes and currency-adjusted net revenue compared with 2025, reversing its prior guidance that had anticipated a decline. Vetropack maintained its expectation of stable sales volumes but now forecasts a slight increase in the adjusted operating margin to 2.8%, up from 2.8% previously, driven by continued cost discipline, improved production efficiency, and tighter capital expenditure controls.
Looking further ahead, Vetropack’s management plans to unveil an updated 2035 strategy at a capital markets day in September, following board approval. The company also disclosed preliminary mid-term targets, forecasting low-single-digit percentage annual revenue growth at constant exchange rates through 2030 compared with 2025, alongside a recovery in operating results and a double-digit EBIT margin by the end of the period.
Additionally, Vetropack aims for a double-digit return on capital employed over the medium term.
