Consolidated net sales at Vetropack Group increased by 23.2% to CHF 816.5 million in 2021 (2020: CHF 662.6 million).

The subsidiary the group acquired in Moldova in December 2020 accounted for 6.9% of the increase in net sales.

It said 2021 was characterised by high demand for glass packaging throughout Europe. The container glass manufacturer strengthened its market position and increased its production capacity during the year.

Its markets and production operations were barely affected by the global pandemic, it added.

Vetropack companies sold most of their additional capacities in their domestic markets.

The high increases in prices for energy, raw materials, packaging, transport, etc. that began in the second half of 2021 did have an adverse impact. These short-term increases in production costs could only be passed on to the market in part.

Investments in 2021 involved the new glass works in Boffalora sopra Ticino, Italy, construction of which began with a ground-breaking ceremony on 25 October 2021. The group also invested in the expansion of glass recycling facilities in its plants in the Czech Republic and Austria.

At the end of the reporting year, the glass producer employed a workforce of 3896 people.

Ukraine and 2022 outlook

Demand for container glass continues to rise throughout Europe.

The group said it has continuously increased its production capacity over the last few years to meet the higher demand for its products and strengthen its market position.

Over the last few months, however, the cost of energy, raw materials, packaging, transport, etc. has increased dramatically, which will mean adjustments to prices in the current year.

In addition, Vetropack Group shut down its glass works in Gostomel, near Kyiv in February. The facility was later damaged in military action.

There will be no production at the glass works in Ukraine for the rest of the year.

This will lead to a reduction in the group’s net revenue of around 10%.

Any expected growth in revenue will therefore be cancelled out by events in Ukraine and it will not be possible to achieve the consolidated operating result and net profit recorded in 2021.