Value Ideas Blog
Vetropack – Summary
This will be the final summary of our Vetropack series. Here are links to the first two parts: http://frenzel-herzing.com/investment-analysis-vetropack-holding/ http://frenzel-herzing.com/vetropack-analysis-part-2/   We want to start by giving you the most recent numbers (http://www.vetropack.com/htm/presse_detail_3.htm?id=159). The revenue growth was in line with our expectations, just as the decrease in EBIT matched our prediction quite closely. As we have said before, we estimated an average 2.5% revenue growth in the short term. We need to add that all calculations have been done in reporting currency, which is CHF. Most profits occur in EUR though, as one of our great readers has remarked in a comment previously. But it is even more important how the cash is pooled. The CFO has told us that the cash pool that is used for investment is also kept in EUR. So we converted our DCF model. We have made the following assumptions, using the most current numbers:
  • Revenue growth of 2.5% in the short term, 2% in the long term
  • 10.1% CAPEX / revenue
  • 0.63 operating expenses / revenue
  • 0.17 average cost / revenue
  • 0.09 average depreciation, amortization / revenue
  read more
This is the continuation of our analysis of the Vetropack Holding.   At first, we will show you the strategic positioning of the company by giving you a geographical overview including Vetropack’s and competing sites. Keep in mind that for most products the maximum transport distance is 150 km. We also added the total sales per country in mio pieces. It has become clearer that Vetropack is in good company at almost every production site. That explains why the management announced they were not able to push thru price adjustments, competition is strong enough in most regions.   MAP   Furthermore, as you probably know, political events in the Ukraine have influenced its currency risks and Ukraine may need a devaluation in order to pay its debt and re-establish its exports.   read more

Company Overview

Today we want to take a look on a company that meets our criteria in several approaches, as you will see soon. We are talking about the Vetropack Holding Ltd., one of Europe’s leading manufacturers of packaging glass. With a rich variety of glass packaging products to offer the beverages and food industry, as well as a broad spectrum of services, Vetropack truly delivers “tailor-made glass”. This motto describes Vetropack’s wide-ranging capabilities in designing and developing, together with their customers, glass packaging solutions which in formal and visual terms best embody the product idea and marketing strategy while also fully meeting the needs of consumers. Their services range from package design, production and just-in-time delivery to consulting and support services in the area of packaging analysis, bottling, conditioning, closure technology, decorative refinement and labeling. This end-to-end service is the fundamental reason for Vetropack’s position as market leader in its six home markets, namely Switzerland, Austria, the Czech Republic, Slovakia, Croatia and Ukraine. As part of its corporate strategy Vetropack targets its product ranges and services especially for each market. Since 1991 Vetropack has been investing consistently in the Eastern European market – a region which is becoming increasingly important for the international food and beverage industry. read more