Ad hoc announcements & media releases

In the first half of 2024, the V-ZUG Group achieved net sales of CHF 284.1 million, 4.7 % below the previous year (CHF 298.2 million). The currency-adjusted change amounted to – 4.2 %. In most markets, sales volumes increased again; only in North America (OEM partner) and in Germany, sales volumes decreased compared to the previous year. The operating result (EBIT) amounted to CHF 8.8 million, which is significantly higher than the previous year (CHF 5.1 million). The EBIT margin increased to 3.1 % (previous year: 1.7 %). Order intake in Switzerland improved noticeably in the first half of 2024. V-ZUG expects that overall volume, net sales and results will improve further in the second half of the year. V-ZUG continues to be committed to its medium-term targets through investments in market development and positioning, production as well as ongoing projects to increase innovation and efficiency.

Media release (PDF)

About the V-ZUG Group

“Bringing simplicity into your home and creativity into your kitchen.”

V-ZUG is Switzerland’s leading brand in household appliances and markets its products in selected premium markets abroad. V-ZUG has been developing and manufacturing kitchen and laundry appliances in Switzerland for over 110 years and offers a comprehensive service in all its markets. The SIBIRGroup AG, which focuses on the Swiss-wide provision of all-brand servicing and the retail of household appliances, is also part of the V-ZUG Group. The V-ZUG Group currently employs around 2,100 people.

V-ZUG Holding AG is listed in the Swiss Reporting Standard of SIX Swiss Exchange in Zurich and represented in the Swiss Performance Index (SPI) (securities number 54 248 374, ISIN CH0542483745, ticker symbol VZUG).

Legal notes

The expectations expressed in this ad hoc announcement/media/investor release are based on assumptions. Actual results may deviate from these assumptions. This ad hoc announcement is published in German and English. The German version is binding. V-ZUG Holding AG processes personal data in accordance with its privacy statement, which is available at www.vzug.com/ch/en/privacy-statement.

In 2023, the V-ZUG Group generated net sales of CHF 585.4 million, 8.0 % lower than the previous year (CHF 636.3 million). During the pandemic-induced boom in 2021–2022, sales volumes were extraordinarily high. In addition to this base effect, inflation, rising interest rates and a corresponding decline in demand had a negative impact on sales volumes in the reporting year. This development was exacerbated by the reduction of inventory levels at V‑ZUG partners. To address the market-related decline in volume, additional measures to increase sales and cost-saving initiatives were implemented that had a positive effect on the operating result and cash flow. The operating result (EBIT) amounted to CHF 16.8 million (previous year: CHF 10.3 million, + 63.1 %). Free cash flow improved to CHF 18.2 million (previous year: CHF – 52.2 million). For the year 2024, V-ZUG expects the market environment to remain challenging and continues to be committed to its medium-term targets through investments in market development and positioning, production as well as ongoing projects to increase innovation and efficiency.

Lower demand and higher gross margin

In the past financial year, net sales amounted to CHF 585.4 million (previous year: CHF 636.3 million). The substantially lower sales volume, at – 16 %, were partially offset by sales price increases. In addition to the pricing discipline, the increase in the gross margin was achieved as it was possible to largely refrain from expensive purchases on spot-buy markets and the development of purchase prices stabilised overall.

Increased profitability in the second half of the year

The operating result (EBIT) in 2023 amounted to CHF 16.8 million, which is substantially higher than the previous year (CHF 10.3 million, + 63.1 %). The EBIT margin was accordingly 2.9 % (previous year: 1.6 %). The Group net result rose overall by 47.2 % to CHF 11.7 million (previous year: CHF 7.9 million).

The situation in the market for household appliances remained challenging. The sluggish development of new construction projects and the reluctance to invest in renovations had an impact on V-ZUG’s sales volumes. Sales volumes came under greater pressure in the second half of the year in particular. Net sales amounted to CHF 287.3 million in the second half of the year, which was CHF 10.9 million, or 3.6 %, lower than net sales in the first half of the year. Operating income (EBIT), on the other hand, was at CHF 11.7 million and thus substantially higher than in the first half year (CHF 5.1 million, + 128.8 %). This was due to no more purchases on spot-buy markets in the second half of 2023 and consistent sales pricing, which lead to a higher gross margin. In addition, the adjustment to the number of employees in production, process optimisations and further cost-saving initiatives bolstered the operating income. The EBIT margin amounted to 4.1 % in the second half of 2023.

The number of employees as of 31 December 2023 amounted to 2,066 (previous year: 2,193), 89 of whom were apprentices.

The cash flow from operating activities was CHF 80.5 million in the reporting year (previous year: CHF 1.0 million). The improvement resulted from the reduction of inventory at the Zug and Sulgen production sites, lower trade receivables and consistent cash management. The cash flow after investment activities (free cash flow) was CHF 18.2 million (previous year: CHF – 52.2 million). The high investment expenses are predominantly attributable to investments in the site transformation. As with the operating result, the situation with regard to free cash flow improved considerably in the second half of the year at CHF + 25.7 million, compared to the first half of 2023 (CHF – 7.5 million). The reduction in net operating working capital amounting to CHF – 35.6 million in the second half of the year played an important role here.

Strong balance sheet without debt financing

The balance sheet of the V-ZUG Group as of 31 December 2023 continues to be very solid with an equity ratio of 74.9 % (previous year: 74.8 %) as well as cash and cash equivalents including securities of CHF 81.0 million (previous year: CHF 64.5 million). Thanks to the positive free cash flow, no debt financing has been necessary so far, despite the ongoing investment programme in the site transformation in Zug.

Focus on market development and operational improvements

The net sales of V-ZUG as market leader in the Swiss domestic market fell by 7.3 % to CHF 481.4 million compared to the previous year (CHF 519.5 million). In International Markets, net sales decreased by 10.9 % to CHF 104.1 million (previous year: CHF 116.8 million); Adjusted for currency effects, the development in the international own-brand business was stable. Operating and organisational improvements went hand in hand with further intensified market development. Structures and processes were optimised in the Swiss market organisation and in Marketing, Engineering and Operations in order to respond more quickly to market changes. Temporary employees were reduced and recruitment for vacancies took place selectively. In addition, an initiative called “Simplify V-ZUG” was launched. The initiative involves streamlining processes and routines and further improving product, delivery and service quality. Throughout the entire company, projects have been reviewed and prioritised and possible cost reductions implemented.

The supply difficulties that were triggered by disrupted supply chains in the previous year are now history. Since the beginning of February 2023, our delivery quality has been back at the usual high level.

Site transformation – a commitment to Switzerland

Having commissioned Europe’s most cutting-edge refrigerator factory in Sulgen in 2022 and by constructing a new vertical factory in Zug, V-ZUG is underscoring its commitment to Switzerland. The new “Zephyr Ost” production building was constructed in 2023. The basic fit-out was completed at the beginning of the first quarter of 2024 and the building handed over to V-ZUG for the installation and commissioning of operating equipment. This strengthens the Swiss identity and provides an important contribution to the local economy. Moreover, V-ZUG is investing in an extensive training programme to equip the skilled workers of today and tomorrow with essential industry expertise.

Sustainability as a main pillar: Our ongoing commitment

V-ZUG has been voluntarily disclosing information about non-financial aspects in the form of a sustainability report since 2012. Reporting has followed the guidelines of the Global Reporting Initiative (GRI) since 2020. The reporting of non-financial matters relating to social and environmental issues has been a legal requirement for listed companies of a certain size in Switzerland since 2023 (Article 964a et seq. CO); This information is now integrated in the Annual Report.

V-ZUG has always been committed to quality, precision and longevity. Sustainability forms part of the business strategy and is managed via an interdisciplinary Sustainability Workforce. A number of projects were driven forward in the reporting year, including:

• The V-ZUG circular economy factory, which is operating as a prototype.
• Over 30 product life cycle assessments showing which measures can be used to reduce the environmental footprint of V-ZUG appliances.
• The “Product as a Service” business model, in which washing machines and dryers are rented out instead of sold, is likewise contributing to longevity and the circular economy.
• Launched in December 2022, the CO₂ web shop was rolled out internationally in the reporting year and saw extensive use. V-ZUG production in Switzerland has been CO₂ neutral since 2020.

Marcel Feurer becomes new Chief Swiss Market Officer

The V-ZUG Group has appointed Mr Marcel Feurer as Chief Swiss Market Officer (CSMO) and Member of the Executive Committee. He will start in his new role at latest by 1 June 2024. He has many years of experience in sales, service and business development in the B2B and B2C business in Switzerland and abroad. Marcel Feurer is currently National Sales Director and Member of the Executive Committee of Hilti Schweiz AG. He previously held a range of positions at Hilti, including Director of Business Development and Member of the Executive Committee of Hilti Belgium.

2024 outlook

In the light of persistent global uncertainty, delayed planning approval procedures and the current level of interest rates, V-ZUG does not expect an improvement in consumer behaviour and in the real estate industry in particular. The “Simplify V-ZUG” initiative will continue, reducing complexity as well as simplifying and automating collaboration and processes. This is also expected to have a positive impact on customer focus and product quality. A number of new products, particularly in the mid segment, will be launched in 2024. For the year 2024, V-ZUG expects the market environment to remain challenging. It continues to be committed to its medium-term targets through investments in market positioning and development, production as well as in ongoing projects to increase innovation and efficiency.

Annual General Meeting 2024

The Board of Directors will submit a motion to the Annual General Meeting to not pay a dividend for the 2023 financial year. This is the result of an in-depth review of the situation, which is characterised by the persisting market difficulties and continued high investments in the site transformation.

Key figures

This ad hoc announcement is available at www.vzug.com/ch/en/investor-relations-news and the 2023 Annual Report at www.vzug.com/ch/en/financial-reports.
 

Further information

Key dates

Media release (PDF)

About the V-ZUG Group

“Bringing simplicity into your home and creativity into your kitchen.”

V-ZUG is Switzerland’s leading brand in household appliances and markets its products in selected premium markets abroad. V-ZUG has been developing and manufacturing kitchen and laundry appliances in Switzerland for over 110 years and offers a comprehensive service in all its markets. The SIBIRGroup AG, which focuses on the Swiss-wide provision of all-brand servicing and the retail of household appliances, is also part of the V-ZUG Group. The V-ZUG Group currently employs around 2,100 people.

V-ZUG Holding AG is listed in the Swiss Reporting Standard of SIX Swiss Exchange in Zurich and represented in the Swiss Performance Index (SPI) (securities number 54 248 374, ISIN CH0542483745, ticker symbol VZUG).

Legal notes

The expectations expressed in this ad hoc announcement/media/investor release are based on assumptions. Actual results may deviate from these assumptions. This ad hoc announcement is published in German and English. The German version is binding. V-ZUG Holding AG processes personal data in accordance with its privacy statement, which is available at www.vzug.com/ch/en/privacy-statement.

Media release (PDF)

About the V-ZUG Group

“Bringing simplicity into your home and creativity into your kitchen.”

V-ZUG is Switzerland’s leading brand in household appliances and markets its products in selected premium markets abroad. V-ZUG has been developing and manufacturing kitchen and laundry appliances in Switzerland for 110 years and offers a comprehensive service in all its markets. The SIBIRGroup AG, which focuses on the Swiss-wide provision of all-brand servicing and the retail of household appliances, is also part of the V-ZUG Group. The V-ZUG Group currently employs around 2,100 people.

V-ZUG Holding AG is listed in the Swiss Reporting Standard of SIX Swiss Exchange in Zurich and represented in the Swiss Performance Index (SPI) (securities number 54 248 374, ISIN CH0542483745, ticker symbol VZUG).

Legal notes

The expectations expressed in this ad hoc announcement/media/investor release are based on assumptions. Actual results may deviate from these assumptions. This ad hoc announcement is published in German and English. The German version is binding. V-ZUG Holding AG processes personal data in accordance with its privacy statement, which is available at https://www.vzug.com/gb/en/privacy-statement.

Zug, 22 July 2022 – the V-ZUG Group looks back on a mixed first half-year that has been full of challenges. Continuing strong demand ensured that net sales remained slightly below the previous year’s level (CHF 303.0 million; previous year’s period CHF 312.3 million), but cost increases, component shortages and delivery delays all impacted the operating result (CHF 4.3 million; previous year’s period CHF 38.3 million) and the EBIT margin (1.4%; previous year’s period 12.3%).

Compared to the challenging months of April and May, the situation showed signs of improvement towards the end of the first half of 2022. Our strong emphasis on cost discipline, procurement processes and phased price adjustments in the markets will help us to counter the challenges at hand. We expect the geopolitical and macroeconomic situation to remain volatile throughout the rest of the year, with continued effects on our supply chains and material costs. Hence, the V-ZUG Group is not making a financial forecast for the second half of 2022 or for the 2022 financial year as a whole.

Revenue similar to previous year, operating result impacted

Net sales of the V-ZUG Group were CHF 303.0 million (previous year’s period CHF 312.3 million). At CHF 4.3 million, the operating result (EBIT) was significantly lower than in the same period last year (CHF 38.3 million) and resulted in a lower EBIT margin of 1.4% (previous year’s period 12.3%). Operational efficiency, measured by the EBITDA margin, was 6.3% in the first half of 2022 (previous year’s period 17.2%).

In the first half of 2022, the V-ZUG Group’s cash flow from operating activities amounted to CHF - 25.2 million (previous year’s period CHF 13.6 million), and free cash flow (after investment activities) totalled CHF - 49.2 million (previous year’s period: CHF - 12.7 million). The negative free cash flow is mainly driven by the low Group net result and the build-up of inventories (CHF 20.8 million) to mitigate supply chain disruptions. Further, investments (Capex¹) in the first half of 2022 totalled CHF 24.6 million (previous year’s period CHF 24.2 million). The largest investment position is in the “Zephyr Ost” production building. The balance sheet remains strong, with an equity ratio of 73.0% (previous year’s period 71.7%).

Higher costs and delivery delays due to purchase material shortages

The challenging situation in procurement markets since summer 2021 saw another unexpected deterioration at the end of March 2022, primarily due to the strict COVID-19 lockdown in the greater Shanghai area. Cost increases and disruptions are affecting virtually all purchasing material groups, but in particular electronic components and, to an even greater extent, microchips. Lack of availability repeatedly forced the V-ZUG Group to alter production planning at short notice in the first half of 2022, with the result that production was not always able to work at full capacity, leading to delivery delays for some products in the second quarter. However, this situation showed signs of improvement towards the end of the first half of the year due to the measures taken regarding procurement processes.

Strong demand in all markets and expansion of international presence

Demand continues to be strong for V-ZUG appliances in the Swiss market, although the short-term economic boom caused by the pandemic has slightly weakened. The Excellence Line appliances launched last year were very well received by the market, with strong order levels. Strong demand coupled with unusual delivery delays of confirmed orders led to a significant increase in the order backlog.

Under difficult political circumstances, with restrictions on business activities in China, Russia and Ukraine, the V-ZUG Group increased its net sales in International Markets in the first half of 2022 to CHF 53.8 million (previous year’s period CHF 44.1 million). Increased brand awareness and the launch of the Excellence Line resulted in continuing high demand internationally for the V-ZUG Group, predominantly in Europe and Australia. The newly opened V-ZUG Studios in London and Paris contributed further to our brand positioning and international growth.

The outlook for a continued strong demand in all its markets therefore remains generally optimistic. The significant increases in procurement costs will be passed on to customers in the form of gradual price increases. However, these increases will be delayed by around three to four months to allow business partners time to adjust their prices vis-à-vis end customers.

Significant market response to innovative products and business models and increased marketing communication in the first half of 2022

V-ZUG's product highlights in 2022 included the spring launch of the “PowerSteam” in the Excellence Line – a world first offering simultaneous steam and microwave functions; the “Grand” – a 90 cm-wide combination steamer available from 2023 that offers greater flexibility and convenience; and the new “CombiCookTop” that has received both an iF Design Award and a Red Dot Design Award. The new business model for renting washing machines and tumble dryers – part of a product-as-a-service concept – is well received by the market and will be marketed more broadly in the second half of 2022. Key successes in the area of digital solutions included the launch of the “V-ZUG Home” app in China and winning Migusto – the cooking platform of Migros, one of the largest grocers in Switzerland – as a major partner for the “V-Kitchen” digital cooking assistant. The success of the new appliances, business models and digital solutions reflects the strength of V-ZUG’s strategy of developing innovative products and services to satisfy customers’ needs and bring simplicity into their home and creativity into their kitchen.

In Switzerland, a broad cross-media campaign was launched with the slogan “Perfection that you can feel” with two new V-ZUG brand ambassadors: the avant-garde Swiss architect Valerio Olgiati and the French-Swiss ex-Formula 1 driver Romain Grosjean. This enabled us to position the design of the V-ZUG brand, the simple, convenient, precise use of our appliances in day-to-day life and our new products in the premium segment more strongly in the market.

Focus on sustainability – employee engagement and reducing carbon emissions

In the 2021 Sustainability Report, published at the end of April 2022 (available at www.vzug.com/ch/en/nachhaltigkeit_overview), the V-ZUG Group set out quantifiable goals in the different areas of sustainability for the first time. In the first half of 2022, the focus was on launching and implementing a number of associated initiatives. One of these is V-ZUG’s involvement in the establishment of the “Association for Industry Decarbonisation” in Zug that aims to set up sustainable hydrogen production on the Tech Cluster Zug (Metall Zug Group) site. The intention is for the hydrogen to replace the natural gas used for high-temperature production processes in Zug and the diesel used in the lorry fleet, leading to a further reduction in the V-ZUG Group’s carbon emissions. The V-ZUG Group also continues to focus on sustainable employee development. V-ZUG’s efforts regarding corporate and employee management and work organisation were rewarded with the Swiss “Friendly Work Space” quality standard.

Relocation of the refrigerator factory complete and site transformation under way

At the beginning of the year, the new production site for cooling appliances started operating and is already demonstrating increases in efficiency compared to the old site in Arbon.

In March – as scheduled – the foundation stone ceremony for the “Zephyr Ost” production building took place in Zug, attended by representatives of local government and the SWISSMEM industry association. The study order procedure is currently under way for the new “Zephyr West” office and development building. Two planning teams will submit their projects by autumn 2022 to a final jury comprising planning specialists and representatives from the construction industry and the city of Zug.

Outlook

Compared to the challenging months of April and May, the situation showed signs of improvement towards the end of the first half of 2022. Our strong emphasis on cost discipline, procurement processes and phased price adjustments in the markets will help us to counter the challenges at hand. We expect the macroeconomic and geopolitical situation to remain volatile throughout the rest of the year, with continued effects on our supply chains and material costs. Hence, the V-ZUG Group is not making a financial forecast for the second half of 2022 or for the 2022 financial year as a whole.

Beyond the 2022 financial year, the V-ZUG Group will be aiming for a return to the figures stated in its medium-term objectives once the situation in procurement markets has stabilised. This will be enabled by the significant order backlog in all markets, an attractive product and service portfolio, increases in efficiency due to investments in production, sales price adjustments, and the continuing progress in market penetration in International Markets.

Key figures

About the V-ZUG Group

"Bringing simplicity into your home and creativity into your kitchen."

V‑ZUG is Switzerland’s leading brand in household appliances and also markets its products in selected premium markets overseas. V-ZUG has been developing and manufacturing kitchen and laundry appliances in Switzerland for more than 100 years and offers comprehensive service in all of its markets. The SIBIRGroup AG, which focuses on the Swiss-wide provision of all-brand servicing and the sale of household appliances, is another part of the V-ZUG Group. The V-ZUG Group currently employs around 2,200 people.

The holding company V-ZUG Holding AG is listed in the Swiss Reporting Standard of SIX Swiss Exchange in Zurich and represented in the Swiss Performance Index (SPI) (securities number 54 248 374, ISIN CH0542483745, ticker symbol VZUG).

Key dates

Further information

Adrian Ineichen
CFO
Phone: + 41 58 767 60 03

This ad hoc announcement / media release is available at www.vzug.com/ch/en/investor-relations-news and the half-year report 2022 at www.vzug.com/ch/en/financial-reports.

Legal notes

The expectations expressed in this ad hoc announcement / media release are based on assumptions. Actual results may deviate from these assumptions. This ad hoc announcement / media release is published in German and English. The German version is binding. V‑ZUG Holding AG processes personal data in accordance with its privacy statement, which is available at www.vzug.com/ch/en/privacystatement.

Ad hoc/media release (pdf)

Zug, 23 May 2022 – Despite sustained high demand, supply chain bottlenecks and further rising procurement costs will affect the V-ZUG Group’s net sales and operating result in the first half of 2022. Thanks to a renewed product portfolio, improved price quality, strong order books including a very positively progressing penetration of the International Markets and efficiency gains resulting from investments in production, the V-ZUG Group is optimistic that it will achieve the announced medium-term targets as soon as the situation in the procurement markets has stabilised.

Since the end of March 2022, the supply chain situation once again has deteriorated significantly but rather unexpectedly, most notably due to the strict Covid-19 lockdown in the greater Shanghai area. Challenges and disruptions are affecting virtually all purchasing material groups, but in particular the availability of electronic components and, even more so, microchips. As a result, the V-ZUG Group is facing some delivery delays and further increases to procurement costs, which will negatively affect the Group’s net sales and operating result.

In light of these challenges, it will not be possible to achieve the operating result that was foreseen for the first half of 2022 – in the range of the EBIT margin of the second half of 2021 – when publishing the 2021 annual results on 15 March 2022. Due to the uncertain time horizon in terms of supply chain normalisation, the V-ZUG Group will not provide an outlook for the full 2022 financial year at this point in time.

The V-ZUG Group is well positioned, and is confident to overcome these challenges and maintain high production and delivery capabilities. Thanks to extraordinarily strong order books, an attractive product portfolio, sales price adjustments, a very positively progressing penetration of the International Markets and efficiency gains resulting from investments in production, the V-ZUG Group expects to be able to meet its announced medium-term targets as soon as the situation in the procurement markets has stabilised.

About the V-ZUG Group

"Bringing simplicity into your home and creativity into your kitchen."

V‑ZUG is Switzerland’s leading brand in household appliances and also markets its products in selected premium markets abroad. V-ZUG has been developing and manufacturing kitchen and laundry appliances in Switzerland for more than 100 years and offers comprehensive service in all markets. SIBIRGroup AG, which focuses on the Swiss-wide provision of all-brand service and the sale of household appliances, is another part of the V-ZUG Group. The V-ZUG Group currently employs around 2,200 people.

The holding company V-ZUG Holding AG is listed in the Swiss Reporting Standard of SIX Swiss Exchange in Zurich and is represented in the Swiss Performance Index (SPI) (securities number 54 248 374, ISIN CH0542483745, ticker symbol VZUG).

Key dates

Further information

Adrian Ineichen
CFO
Phone: + 41 58 767 60 03

Patrik Leisi
Head Legal & Compliance / Investor Relations
Phone: + 41 58 767 60 03

This ad hoc announcement / media release is available at: www.vzug.com/ch/en/investor-relations-news.

The expectations expressed in this ad hoc announcement / media release are based on assumptions. Actual results may vary from those anticipated. This ad hoc announcement / media release is published in German and English. The German version is binding. V‑ZUG Holding AG processes personal data in accordance with its privacy statement available at: www.vzug.com/ch/en/privacystatement.

Ad hoc/media release (pdf)

Zug, 15 March 2022 – The V-ZUG Group continued its growth trajectory in the 2021 financial year. Net sales once again saw a significant jump of 9.5% (CHF 623.7 million; previous year CHF 569.4 million), as did the operating result with +27.5% (CHF 62.7 million; previous year CHF 49.2 million). Thanks to these record sales, the medium-term double-digit EBIT margin target was achieved ahead of schedule in the year under review. This gratifying result was driven above all by continued high demand in the Swiss Market and strong growth in international business. The second half of the year was marred for the V-ZUG Group, as it was for the entire industrial environment, by the challenges posed by the intensifying supply chain situation and the associated increase in purchase prices for materials and logistics services.

The V-ZUG Group is still expecting a positive sales performance in excess of +6% for the 2022 financial year, thanks to full order books in Switzerland and across our International Markets. For the latter, sustained sales growth in excess of 10% per year is expected over the next few years. Major uncertainties persist in relation to the war in Ukraine and to developments in supply chains and purchase prices, whereby the latter is not expected to ease much before the end of 2022. Accordingly, the EBIT margin in the first half of 2022 is expected to be within the realm of that of the second half of 2021. Subject to any relevant and lasting geopolitical upheavals, the Group is aiming for an EBIT margin of 10% for the full 2022 financial year, given the high sales and revenue expectations and effective cost control.

Another significant rise in operating result

V-ZUG Group’s net sales rose compared with the previous year, standing at CHF 623.7 million (previous year CHF 569.4 million), with both the Swiss Market (+5.4%) and strong growth in the International Markets (+40.5%) contributing to this. Internationally, both the own-brand business (+26.5%) and the OEM business (+91.9%) performed exceptionally well. Furthermore, for the first time in its history, V-ZUG delivered more than 500,000 appliances to its customers in a single calendar year.

At CHF 62.7 million, the operating result (EBIT) was 27.5% higher than the previous year’s figure of CHF 49.2 million. With an EBIT margin of 10.0% (previous year 8.6%), the V-ZUG Group reached its medium-term target of a double-digit EBIT margin as announced as part of its stock market listing for the first time. Operational productivity as measured by the EBITDA margin increased to 15.2% (previous year 14.0%). As mentioned in the 2021 Half-Year Report, rising materials prices and supply shortages – particularly of microprocessors – resulted in a significant drop in the EBIT margin from 12.4% in the first half of 2021 to 7.7% in the second half of the year, particularly as sales price increases did not take effect until the fourth quarter of 2021.

In the 2021 financial year, the V-ZUG Group’s cash flow from operating activities totalled CHF 63.5 million (previous year CHF 99.4 million), and free cash flow (after investment activities) totalled CHF 9.0 million (previous year CHF 42.0 million). The difference from the previous year is primarily due to higher stock levels and tax payments alongside continuing high levels of investment.

As at 31 December 2021, the balance sheet of the V-ZUG Group showed a strong equity ratio of 72.9% (previous year 70.9%) and cash and cash equivalents incl. securities of CHF 117.3 million (previous year CHF 107.8 million).

2021: second year of COVID-19, rising costs and supply chain challenges

Despite the ongoing COVID-19 pandemic and the increasing materials shortages and bottlenecks in logistics capacities, production stoppages were mostly avoided in the reporting year. Given the adverse circumstances, delivery times remained acceptable for dishwashers and good for all other product categories. Price increases on purchasing materials and logistics services have forced us to adjust sales prices. The first price increase took place in October 2021 and a further increase will take effect in April 2022. Additional price increases will be unavoidable in the coming months.

Our effective Health & Safety policy minimised the number of COVID-19 cases and isolation-related absences across the V-ZUG Group companies in the reporting year. Employees at the Zug and Arbon sites also had the opportunity to get vaccinated on-site.

2022 outlook: V-ZUG is well placed to seize opportunities and overcome challenges

Demand for household appliances increased as a consequence of the COVID-19 pandemic, particularly in the Swiss Market, but this is expected to normalise at a high level in the 2022 financial year. V-ZUG is anticipating net sales to grow by more than 6% in 2022 as a result of the exceptionally full order books, price adjustments in Switzerland as well as growing market penetration and full order books in International Markets.

There are still many uncertainties around supply chains and purchase prices. As a result, significant resources will still need to be spent in 2022 on ensuring production and delivery levels. The purchase price situation also means that sales prices will need to be adjusted. Overall, this situation is not expected to ease much before the end of 2022. As in the second half of 2021, the EBIT margin is expected to remain modest in the first half of 2022. Subject to any major and lasting geopolitical upheavals, the V-ZUG Group is aiming for an EBIT margin of 10% for the full financial year, given the high sales and revenue expectations and effective cost control. All transformation projects will continue as planned.

The strong performance of the business in the past financial year resulted in the Group achieving some of the medium-term targets announced as part of the stock market listing ahead of time (EBIT margin >10%; organic growth between 2 and 3%) and being well on the way to achieving others (doubling international business within five years compared with 2019). As part of revising its medium-term plans, the V-ZUG Group has now established the goal of achieving annual organic net sales growth of 3% at Group level by 2026, including annual organic net sales growth of over 10% in the International Markets, and an EBIT margin within the range of 10 to 13%.

There have been no fundamental changes to the dividend policy announced in the context of the stock market listing. As such, in light of continued significant investments in developing new products and digital solutions, further expansion of the International Markets, marketing and the transformation of the production site in Zug, the Board of Directors is proposing to the Annual General Meeting that no dividend be paid for the 2021 financial year.

Unusual dynamism on the Swiss Market and thriving international progress

The short-term economic recovery driven by continuing high demand led to strong sales in 2021 in a normally rather steady Swiss Market environment. Compared with the previous year, net sales rose by 5.4% and totalled CHF 529.1 million (previous year CHF 502.1 million). As a result, V-ZUG can claim market leadership in Switzerland.

In the service business, the V-ZUG Group maintained a level of service that met high customer expectations and the company’s service promise, and complied with COVID-19 Health & Safety measures. In addition, the SIBIRGroup AG further expanded its strength in the all-brand service area.

The international growth strategy continued to bear fruit in 2021. Net sales increased by 40.5% to CHF 94.6 million (previous year CHF 67.4 million). This result is due to continued excellent growth in the own-brand business (+26.5%) with net sales of CHF 67.0 million (previous year CHF 53.0 million) and significant increases in the OEM business, with net sales of CHF 27.6 million (previous year CHF 14.4 million). The associated increase in the contribution margin from international business drove further growth in the International Markets, again resulting in a positive contribution to V-ZUG’s structural costs.

The presence of the V-ZUG brand in major metropolitan areas around the world continued to expand with the opening of new V-ZUG Studios (showrooms). The new V-ZUG Studio in London was completed at the end of 2021, but due to the ongoing COVID-19 pandemic, the grand opening will take place at the end of March 2022. In addition, a V-ZUG Studio is scheduled to open in Paris in the second quarter. This will be followed by the V-ZUG Studio in Sydney in the third quarter and the V-ZUG Studio Vienna in the fourth quarter.

New products, new business models, new digital solutions

The launch of the new Excellence Line was a highlight for V-ZUG last year and was extremely well-received by customers and distribution partners both in Switzerland and in International Markets. The Excellence Line will be expanded in April 2022 with the new “PowerSteam” – a world first from V-ZUG, with an innovative, multi-application combination of steam and microwave technology that combines fast, precision cooking with tried and tested reliability and guaranteed top results. In addition, V-ZUG will be launching the new “CombiCookTop” – the second generation of the hob with an integrated extractor.

V-ZUG is currently running pilot projects to assess a new business model – renting washing machines to business customers. The rental appliances remain the property of V-ZUG, which provides any maintenance and service required during the rental period. At the end of the rental period, the appliances are returned, and any reusable components are recycled, promoting a sustainable circular economy.

In the 2021 financial year, the V-ZUG Group launched several new digital solutions as well as new releases of existing apps. At the heart of these is the “V-ZUG Home” app, with expanded functionalities and content – and easier link-up to the digital cook assistant for recipes and menu planning (“V-Kitchen”) – making it the ideal complement to the new Excellence Line.

Sustainability with a holistic focus

At V-ZUG, digitalisation plays an important role when it comes to sustainability and in raising awareness among end customers about the environmentally friendly use of V-ZUG appliances. Measuring our ecological footprint and creating life cycle assessments was another key task for the V-ZUG Group in the 2021 financial year. This created the basis for the V-ZUG Group to align its commitment to climate action with quantifiable targets and clear priorities.

Even under the new, significantly stricter energy efficiency regulations, 58% of the reclassified appliances sold by V-ZUG in the reporting year were in the top three energy efficiency classes (A – C). Production sites are kept CO₂-neutral by preventing and reducing emissions and through the “V-Forest” reforestation project as part of voluntary offsetting. The associated compensation amounts are financed by a CO₂ fund, built up from a voluntary internal CO₂ levy for each tonne of CO₂ emitted.

V-ZUG pursues a holistic approach to sustainability, which is embedded in V-ZUG’s corporate culture and forms an integral part of the V-ZUG brand. As part of this, an equal pay analysis was carried out in accordance with the Gender Equality Act and confirmed that V-ZUG in Switzerland is a fair employer that pays men and women equally for equal work. V-ZUG’s increasingly diverse workforce is also reflected in the increasing number of women overall (around 23%) and the proportion of women in senior management roles (23.6%).

Real estate projects and site transformation progressing

At the Zug site in November 2021, the new enamelling coating technology system was approved for production in the “Zephyr Hangar” building. Furthermore, after receiving the building permit at the beginning of the year, construction began in May 2021 on the final building of the new vertical factory, “Zephyr Ost”, which will optimise logistics and production processes in Zug.

The operating equipment installation and commissioning at the new refrigerator factory in Sulgen, which had been under way since autumn 2020, was completed on schedule and production gradually started in January and February 2022.

Key figures

About the V-ZUG Group

"Bringing simplicity into your home and creativity into your kitchen."

V‑ZUG is Switzerland’s leading brand in household appliances and also markets its products in selected premium markets abroad. V-ZUG has been developing and manufacturing kitchen and laundry appliances in Switzerland for more than 100 years and offers comprehensive service in all of its markets. The SIBIRGroup AG, which focuses on the Swiss-wide provision of all-brand service and the sale of household appliances, is another part of the V-ZUG Group. The V-ZUG Group currently employs around 2,200 people.

The holding company V-ZUG Holding AG is listed in the Swiss Reporting Standard of SIX Swiss Exchange in Zurich and represented in the Swiss Performance Index (SPI) (securities number 54 248 374, ISIN CH0542483745, ticker symbol VZUG).

Key dates

Further information

Adrian Ineichen
CFO
Phone: + 41 58 767 60 03

Patrik Leisi
Head Legal & Compliance / Investor Relations
Phone: + 41 58 767 60 03

This media release / ad hoc announcement is available at www.vzug.com/ch/en/investor-relations-news and the 2021 annual report is available  at www.vzug.com/ch/en/financial-reports.

Legal notes

The expectations expressed in this media release / ad hoc announcement are based on assumptions. Actual results may deviate from these assumptions. This media release / ad hoc announcement is published in German and English. The German version is binding. V‑ZUG Holding AG processes personal data in accordance with its privacy statement, which is available at www.vzug.com/ch/en/privacystatement.

Ad hoc / media release (pdf)

Zug, 22 July 2021 – The V-ZUG Group recorded a very successful first half of 2021, posting an above-average increase in net sales (CHF 308.3 million; previous year's period CHF 258.6 million) and a gratifying operating result (CHF 38.3 million; previous year's period CHF 12.9 million) thanks to sustained high demand, and building on its strong performance in the second half of 2020. Both the domestic Swiss market, driven by an exceptional demand, and our sales growth in the international markets across all regions (Europe, Asia/Pacific and North America) contributed to this encouraging result, with sales growth of around 19%.

For the second half of 2021, the above-average demand in the Swiss market is anticipated to return to a more normal level. There is considerable uncertainty regarding restricted capacity and resulting price increases for virtually all purchased materials and logistics services. Due to this volatile situation, the V-ZUG Group is refraining from making a forecast for its 2021 annual results.

V-ZUG Group's net sales rose compared with the previous year's period, standing at CHF 308.3 million (previous year's period CHF 258.6 million). Both the domestic Swiss market (+12.9%) and the international markets in all three regions (Europe +56.4%, APAC +87.6% and North America +98.4%) contributed to this significant growth in sales. At CHF 38.3 million, the operating result (EBIT) was 196.6% higher than the same period last year (CHF 12.9 million). Operational productivity (EBITDA margin) also increased, from 10.7% in the previous year's period to 17.4% in the first half of 2021.

In the first half of 2021, the V-ZUG Group's cash flow from operating activities amounted to CHF 13.6 million (previous year's period CHF 25.4 million), and free cash flow (after investment activities) totalled CHF -12.7 million (previous year's period CHF -0.6 million). The deviation compared with the previous year’s period is mainly attributable to the increase in current assets. Strategic projects have progressed in line with plans, and have been funded entirely from the Group's own resources. With an equity ratio of 71.7% and cash and cash equivalents of CHF 95.7 million, the balance sheet remains strong.

Extraordinary demand in Switzerland and strong growth in international sales

Boosted by increased consumer activity was an unexpected consequence of the COVID-19 pandemic, the demand for household appliances has grown significantly since mid-2020. In the first half of 2021, despite considerable challenges relating to the procurement of materials and components, the V-ZUG Group was able to meet the significantly increased demand to a great extent, seamlessly building on its above-average performance in the second half of 2020.

In the first half of 2021, the V-ZUG Group benefited from strong demand in its domestic Swiss market and recorded extraordinary sales growth in all product groups.

In the international markets, the V-ZUG Group increased net sales in the first half of 2021 to CHF 43.7 million (previous year's period CHF 24.3 million). The own-brand business contributed to this trend, with sales growing by CHF 11.6 million or +69.4%. After a temporary slowdown in the 2020 financial year, the OEM business recovered significantly. The opening of two further ZUGORAMAs (showrooms), in London and in Paris, is planned for the second half of 2021.

Enthusiasm for the new Excellence Line

The introduction of the new Excellence Line this year is a highlight for V-ZUG. The Excellence Line will undergo a phased launch in the international markets. The launch took place in Europe at the beginning of May 2021, and will be followed by launches in Hong Kong, Singapore and Australia in autumn 2021, and finally in the People's Republic of China at the beginning of 2022.

Based on initial feedback from the markets, the new appliances are being well received both by specialist retailers and by end customers in terms of their design and their functionality. The design is also delighting experts around the world. As a result, the Excellence Line ovens and steam cookers have received the "Best of the Best" Red Dot Award for Product Design 2021, one of the best-known awards for design and innovation worldwide. In addition, the Excellence Line and the AdoraDish V6000 dishwasher with OptiLift have received this year’s iF DESIGN AWARD.

No significant production stoppages, few COVID-19 cases

In the first half of 2021, the V-ZUG Group was once again able to avoid production stoppages to a great extent and maintain its delivery capability, some minor delays notwithstanding. Thanks to effective precautionary measures, there have been very few cases of COVID-19 and quarantine-related absences across all V-ZUG Group locations since the end of February 2021. At its operating sites in Zug and Arbon, V-ZUG has taken part in voluntary mass COVID-19 testing, with a weekly testing rate of up to 500 employees. At the Arbon site, employees have also had the opportunity to be vaccinated at their workplace.

Due to the pandemic, practically all partner, customer and shareholder events took place virtually again in the first half of 2021. This led to certain cost savings compared with the pre-COVID situation.

In the first half of the year, the V-ZUG Group also had to deal with pandemic-related challenges and uncertainties in procurement and supply chain management. In addition to supply bottlenecks and procurement difficulties, the second quarter of the year also saw the start of a noticeable increase in prices for raw materials, components and logistics capacity.

Site transformations in Zug and Arbon/Sulgen proceed on schedule

At the beginning of 2021, planning permission was granted for the final production building of the new vertical factory in Zug ("Zephyr Ost"). Construction work started on the new building in May 2021, and it is due to be handed over to operations by autumn 2023, following completion and operational expansion.

The construction of the new refrigerator factory building in Sulgen was completed in autumn 2020. Since then, a phased handover to operations has been taking place, involving extensive installation activities. Full commissioning will take place at the beginning of 2022.

Due to its strong balance sheet and net liquidity, V-ZUG continues to be in a position to finance the far-reaching transformation projects, including the aforementioned upgrade of its own production and office premises, on its own and without additional external funds.

Gradual introduction of new digital solutions

This year, V-ZUG has introduced several digital solutions onto the market. For example, the V-ZUG Home app was updated for the launch of the new Excellence Line. Both proven functionalities and a whole range of new areas of application are now available in conjunction with the latest generation of appliances. A digital assistant has also been created in the form of "V-Kitchen" (www.v-kitchen.ch), offering enthusiastic cooks support throughout the entire cooking process. Partners in this initiative include Swissmilk, Wildeisen, Farmy and Tiptopf.

"V-Connect" has been developed specifically for managed buildings in order to make servicing even more efficient. Using an app, caretakers can network older appliances up to 20 years of age in order to receive an even faster and more targeted service. And finally, “V-Upgrade” enables users of V-ZUG Adora Line washing machines and dryers to retrospectively acquire additional functionality.

Sustainability report published

At the end of April 2021, the V-ZUG Group published its sustainability report for the 2020 financial year, with the aim of communicating transparently in this important field. The 2020 Sustainability Report is available at: www.vzug.com/ch/en/nachhaltigkeit_overview.

The fact that V-ZUG products achieve top marks with regard to sustainability is evident, even during the ongoing switch to the new energy efficiency classes. Based on the new, significantly more stringent energy efficiency criteria, V-ZUG continues to achieve the highest energy efficiency class A with the AdoraWash V6000 and the AdoraDish V6000.

Outlook

For the second half of 2021, the above-average demand in the Swiss market is anticipated to return to a more normal level, while continued solid sales growth can be expected in the international markets. There is considerable uncertainty regarding the deteriorating situation in supply chains. In particular, restricted capacities are leading to price increases for almost all purchased materials and logistics services, which requires a corresponding increase in sales prices in October 2021. The circumstances also remain tense regarding the supply reliability in our supply chains. Keeping our production and delivery capability intact will of course continue to be a high-priority task. Against the background of this volatile situation, the V-ZUG Group is refraining from making a forecast for its 2021 annual results.

Key figures

About the V-ZUG Group

"Bringing simplicity into your home and creativity into your kitchen."

V‑ZUG is Switzerland’s leading brand in household appliances and also markets its products in selected premium markets abroad. V-ZUG has been developing and producing kitchen and laundry appliances in Switzerland for over 100 years and offers a comprehensive service in all markets. The SIBIRGroup AG, which focuses on all-brand services and the sale of household appliances throughout Switzerland, is another part of the V-ZUG Group. The V-ZUG Group currently employs around 2,000 people.

V-ZUG Holding AG is listed in the Swiss Reporting Standard of SIX Swiss Exchange in Zurich and is represented in the Swiss Performance Index (SPI) (securities number 54 248 374, ISIN CH0542483745, ticker symbol VZUG).

Key dates

Further information

Adrian Ineichen
CFO
Phone: + 41 58 767 60 03

Patrik Leisi
Head Legal & Compliance / Investor Relations
Phone: + 41 58 767 60 03

Legal notes

The expectations expressed in this media release are based on assumptions. Actual results may vary from those anticipated. This media release is published in German and English. The German version is binding. V‑ZUG Holding AG processes personal data in accordance with its privacy statement available at: www.vzug.com/ch/en/privacystatement.

Ad hoc / media release (pdf)

This media release is available at: www.vzug.com/ch/en/investor-relations-news and the Half-Year Report is available at: www.vzug.com/ch/en/financial-reports.