Key Figures for the First Half of 2022
Investments (Capex): 24.6 CHF million
Operating Result (EBIT): 4.3 CHF million (-88.9%)
EBIT Margin: 1.4%
Net sales for the first half of 2022 remained slightly below the previous year's level due to high demand, but supply chain challenges and cost increases impacted the operating result.
Net Sales Total and by Region (CHF million)
Total Net Sales: 303.0 CHF million (-3.0%)
- Switzerland: 249.2
- Europe (excl. Switzerland): 16.1
- North and South America: 17.2
- Asia/Pacific/Other: 20.5
- International markets proportion: 17.8%
Net Sales 2020 – 2022 per Half Year (CHF million)
[Bar chart description: Shows net sales for H1 2020, H2 2020, H1 2021, H2 2021, and H1 2022. H1 2020 was around 250M CHF, H2 2020 around 270M CHF, H1 2021 around 310M CHF, H2 2021 around 310M CHF, and H1 2022 around 300M CHF.]
Cash Flow from Operating Activities: -25.2 CHF million
Footnotes: 1) Figures for the previous year's period were partially adjusted due to changes in accounting principles. 2) "Capex" refers to additions to tangible and intangible assets.
Letter to Shareholders
Zug, 22 July 2022
The first half of 2022 presented a mix of challenges and successes for V-ZUG Group. Supply chain shortages, cost inflation, and delivery delays were significant factors impacting the operating result. Despite these, the Group saw strong new order intake, particularly in international markets.
Net sales were slightly below the previous year (-3.0%), with a -7.1% decrease in the Swiss domestic market but a robust +21.9% increase in international markets. The EBIT margin was significantly impacted, falling to 1.4% (from 12.3% in the prior year) due to cost increases, especially for electronic components.
Strategic projects progressed well, funded by internal resources, maintaining a strong balance sheet with an equity ratio of 73.0%. The Group's cash flow from operating activities was -25.2 million CHF, and free cash flow was -49.2 million CHF, partly due to inventory build-up to mitigate supply chain disruptions. Investments (Capex) amounted to 24.6 million CHF, with the "Zephyr Ost" production building being a major position.
V-ZUG continues to focus on innovative products and business models, evidenced by the success of the "CombiCookTop" hob (winning iF Design and Red Dot Awards) and the upcoming "PowerSteam" and "Grand" CombiSteamer. A new rental model for washing machines and tumble dryers is also being well-received.
The "V-ZUG Home" app was launched in China and is now available internationally. The digital cooking assistant "V-Kitchen" has also seen success, with Migusto as a key partner.
Market communication was intensified with a campaign featuring ambassadors Valerio Olgiati and Romain Grosjean, strengthening the brand's positioning. Social media visibility was also increased.
Swiss Market: Demand remains strong, though the pandemic-induced economic boom has slightly weakened. Excellence Line appliances were well-received. Supply chain challenges led to delivery delays and increased order backlogs. Cost increases will be passed on gradually to customers. Service & Support response times improved to around two working days.
International Markets: Despite political circumstances and restrictions in China, Russia, and Ukraine, net sales in international markets increased to 53.8 million CHF (+27.8% for own-brand business). Demand is high, particularly in Europe and Australia, driven by brand awareness and the Excellence Line. Cost increases will be passed on via sales price adjustments.
Sustainability: V-ZUG is setting quantifiable sustainability objectives and implementing initiatives, including establishing the "Industry Decarbonisation Association" to produce sustainable hydrogen. The company is also decarbonizing its vehicle fleet and promoting sustainable lifestyles internally.
Production: The relocation to the new Sulgen production site for cooling appliances is complete. The "Zephyr Ost" production building in Zug is progressing as planned, with equipment installation starting in Q4 2023 and production in 2024. Future office and development work will be consolidated in the "Zephyr West" building.
Outlook: The situation showed signs of improvement towards the end of H1 2022. Cost discipline, procurement processes, and phased price adjustments will help counter ongoing challenges. The geopolitical and macroeconomic situation is expected to remain volatile.
Shareholders' Day: A Shareholders' Day is planned for August 24, 2022, in Zug.
The report is signed by Oliver Riemenschneider (Chairman of the Board of Directors) and Peter Spirig (Chief Executive Officer).
Financial Report
Consolidated Income Statement (in KCHF)
| Item | H1 2022 | H1 2021 |
|---|---|---|
| Net sales | 303,004 | 312,280 |
| Changes in inventories | 4,632 | 16,511 |
| Other operating revenue | 5,206 | 4,821 |
| Operating revenue | 312,842 | 333,612 |
| Cost of materials | -128,576 | -122,519 |
| Personnel expenses | -110,810 | -108,674 |
| Depreciation of tangible assets | -12,236 | -12,235 |
| Amortisation of intangible assets | -2,752 | -3,182 |
| Other operating expenses | -54,217 | -48,699 |
| Operating expenses | -308,591 | -295,309 |
| Operating result (EBIT) | 4,251 | 38,303 |
| Financial income | 208 | 77 |
| Financial expenses | -232 | -264 |
| Financial result | -24 | -187 |
| Net result before taxes | 4,227 | 38,116 |
| Taxes | -459 | -4,158 |
| Group net result | 3,768 | 33,958 |
| Earnings per share (in CHF) | 0.59 | 5.28 |
| Number of employees (FTE) as at 30.06. | 2,145 | 2,066 |
Note: 1) The previous year's figures were amended in line with changes to accounting principles.
Consolidated Balance Sheet (Assets in KCHF)
| Item | 30.06.2022 | 31.12.2021 | 30.06.2021 |
|---|---|---|---|
| Cash and cash equivalents | 67,914 | 117,179 | 95,693 |
| Securities | 99 | 102 | 110 |
| Trade receivables | 70,171 | 60,397 | 73,603 |
| Other receivables | 17,558 | 11,747 | 19,962 |
| Inventories | 113,101 | 92,044 | 81,535 |
| Prepaid expenses and accrued income | 7,807 | 2,639 | 5,527 |
| Current assets | 276,650 | 284,108 | 276,430 |
| Tangible assets | 305,619 | 295,398 | 281,720 |
| Intangible assets | 8,133 | 8,954 | 10,374 |
| Financial assets | 29,471 | 27,648 | 28,045 |
| Fixed assets | 343,223 | 332,000 | 320,139 |
| Assets | 619,873 | 616,108 | 596,569 |
Consolidated Balance Sheet (Liabilities and Shareholders' Equity in KCHF)
| Item | 30.06.2022 | 31.12.2021 | 30.06.2021 |
|---|---|---|---|
| Trade payables | 37,504 | 27,699 | 25,808 |
| Other current liabilities | 43,328 | 50,645 | 55,882 |
| Accrued expenses and deferred income | 38,129 | 41,507 | 38,561 |
| Current provisions | 19,970 | 19,455 | 19,825 |
| Current liabilities | 138,931 | 139,306 | 140,076 |
| Other long-term liabilities | 1,602 | 2,237 | 2,837 |
| Long-term provisions | 11,552 | 11,261 | 11,123 |
| Deferred tax liabilities | 15,023 | 14,451 | 15,037 |
| Non-current liabilities | 28,177 | 27,949 | 28,997 |
| Total liabilities | 167,108 | 167,255 | 169,073 |
| Share capital | 1,736 | 1,736 | 1,736 |
| Capital reserves | 132,792 | 132,792 | 132,792 |
| Retained earnings | 318,237 | 314,325 | 292,968 |
| Shareholders' equity | 452,765 | 448,853 | 427,496 |
| Liabilities and shareholders' equity | 619,873 | 616,108 | 596,569 |
Consolidated Statement of Cash Flows (in KCHF)
| Item | H1 2022 | H1 2021 |
|---|---|---|
| Group net result | 3,768 | 33,958 |
| Financial result (net) | 24 | 187 |
| Depreciation and amortisation | 14,988 | 15,417 |
| Earnings from the sale of tangible assets | -110 | -159 |
| Net changes in provisions | 828 | 1,076 |
| Income tax | 459 | 4,158 |
| Other non-cash items | -3,548 | -2,618 |
| Change in trade receivables | 10,588 | -17,647 |
| Change in other receivables and prepaid expenses and accrued income | -11,025 | -7,498 |
| Change in inventories | -20,845 | -17,010 |
| Change in trade payables | 8,598 | 3,688 |
| Change in other current liabilities and accrued expenses and deferred income | -1,523 | 5,645 |
| Interest paid | -72 | 59 |
| Taxes paid | -6,153 | -5,561 |
| Cash flow from operating activities | -25,199 | 13,577 |
| Investments in tangible assets | -22,194 | -25,814 |
| Investments in intangible assets | -1,933 | -402 |
| Investments in financial assets and securities | -119 | 262 |
| Disposals of tangible assets | 228 | 175 |
| Disposals of financial assets and securities | 10 | 11 |
| Interest received | 38 | 29 |
| Cash flow from investing activities | -23,970 | -26,263 |
| Cash flow from operating and investing activities (free cash flow) | -49,169 | -12,686 |
| Increase in long-term liabilities | 20 | - |
| Cash flow from financing activities | 20 | - |
| Currency translation effects | -116 | 689 |
| Change in "Net cash and cash equivalents" | -49,265 | -11,997 |
| Net cash and cash equivalents 01.01. | 117,179 | 107,690 |
| Net cash and cash equivalents 30.06. | 67,914 | 95,693 |
Consolidated Statement of Changes in Shareholders' Equity (in KCHF)
| Item | Share capital | Capital reserves | Retained earnings | Accumulated currency translation differences | Total retained earnings | Total |
|---|---|---|---|---|---|---|
| Shareholders' equity 30.06.2022 | 1,736 | 132,792 | 314,817 | 3,420 | 318,237 | 452,765 |
| Group net result | 3,768 | 3,768 | 3,768 | |||
| Currency translation effects | 144 | 144 | 144 | |||
| Shareholders' equity 01.01.2022 | 1,736 | 132,792 | 311,049 | 3,276 | 314,325 | 448,853 |
| Shareholders' equity 30.06.2021 | 1,736 | 132,792 | 289,579 | 3,389 | 292,968 | 427,496 |
| Group net result | 33,958 | 33,958 | 33,958 | |||
| Currency translation effects | 356 | 356 | 356 | |||
| Shareholders' equity 01.01.2021 | 1,736 | 132,792 | 255,621 | 3,033 | 258,654 | 393,182 |
Segment Information (in KCHF)
Household Appliances
| Item | H1 2022 | H1 2021 |
|---|---|---|
| Net sales | 303,004 | 312,287 |
| Operating revenue | 312,296 | 333,166 |
| Operating expenses (without depreciation) | -297,691 | -283,497 |
| EBITDA | 14,605 | 49,669 |
| EBITDA in % of net sales | 4.8 | 15.9 |
| Depreciation, amortisation and impairment | -12,840 | -13,283 |
| Operating result (EBIT) | 1,765 | 36,386 |
| EBIT in % of net sales | 0.6 | 11.7 |
Real Estate
| Item | H1 2022 | H1 2021 |
|---|---|---|
| Operating revenue | 5,891 | 5,261 |
| Operating expenses (without depreciation) | -662 | -728 |
| EBITDA | 5,229 | 4,533 |
| Depreciation, amortisation and impairment | -2,148 | -2,134 |
| Operating result (EBIT) | 3,081 | 2,399 |
Corporate and elimination
| Item | H1 2022 | H1 2021 |
|---|---|---|
| Net sales | - | -7 |
| Operating revenue | -5,345 | -4,815 |
| Operating expenses (without depreciation) | 4,750 | 4,333 |
| EBITDA/Operating result (EBIT) | -595 | -482 |
Total
| Item | H1 2022 | H1 2021 |
|---|---|---|
| Net sales | 303,004 | 312,280 |
| Operating revenue | 312,842 | 333,612 |
| Operating expenses (without depreciation) | -293,603 | -279,892 |
| EBITDA | 19,239 | 53,720 |
| EBITDA in % of net sales | 6.3 | 17.2 |
| Depreciation, amortisation and impairment | -14,988 | -15,417 |
| Operating result (EBIT) | 4,251 | 38,303 |
| EBIT in % of net sales | 1.4 | 12.3 |
Note: 1) The previous year's figures were amended in line with changes to accounting principles.
Notes
Financial reporting
The unaudited half-year consolidated financial statements for the period ended 30 June 2022 were prepared in accordance with Swiss GAAP FER recommendations. They should be read in conjunction with the consolidated financial statements dated 31 December 2021.
Change in accounting principles
Outbound freight is now part of the cost of materials. Changes in bad debt allowances and bad debt losses are now part of other operating expenses. These changes led to restatements of prior year figures.
Consolidation
The financial statements cover V-ZUG Holding AG and its subsidiaries. Full consolidation is applied. Foreign group companies' financial statements are translated into Swiss francs using the current rate method.
Significant estimates
Assumptions are made for accounting principles and reported amounts, but no significant new assumptions were made compared to the 31 December 2021 statements.
Seasonality
The Household Appliances segment shows seasonality, with the second half of the year typically stronger. In 2021, this trend was less marked due to economic conditions and international growth. H1 2022 was impacted by component shortages and delivery delays.
Events after the balance sheet date
No events occurred after the balance sheet date requiring adjustment or disclosure.
V-ZUG Group Addresses
Details of V-ZUG Holding AG and its various subsidiaries and international offices are provided, including contact information (phone, email, website).
Corporate segment: V-ZUG Holding AG, V-ZUG AG, V-ZUG Kühltechnik AG, V-ZUG Services AG, SIBIRGroup AG.
International Offices: V-ZUG Europe BV (Belgium), V-ZUG UK Ltd (UK), V-ZUG Australia Pty Ltd (Australia), V-ZUG (Changzhou) (China), V-ZUG (Shanghai) (China), V-ZUG Hong Kong Co. Ltd. (Hong Kong), V-ZUG Singapore Pte. Ltd. (Singapore).
Real Estate segment: V-ZUG Assets AG, V-ZUG Infra AG.
Websites: www.vzug.com, www.sibirgroup.ch
Legal Information
Contact: Patrik Leisi (Head of Legal & Compliance / Investor Relations), Adrian Ineichen (Chief Financial Officer).
Publisher, editor, photos: V-ZUG Holding AG. Details on editing, design, and translation are provided.
Disclaimer: The report is published in German and English, with the German version being authoritative. Forward-looking statements are subject to risks and uncertainties.
External Links
- Annual reports and financial reports: www.vzug.com/gb/en/financial-reports
- Sustainability report: www.vzug.com/ch/en/nachhaltigkeit_overview
- Global references: www.references.vzug.com/en
- Excellence Line: https://excellence-line.vzug.com/ch/en
- Investor Relations: www.vzug.com/gb/en/investor-relations
Sustainability. We see it as a driving force in | V-ZUG Ltd.
