V-ZUG Group increases sales and notably profitability in 2024
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V-ZUG Holding AG / Key word(s): Annual Results Zug, 6 March 2025 MEDIA / INVESTOR NEWS Ad hoc announcement pursuant to Art. 53 LR
The Board of Directors proposes a distribution of CHF 0.90 per share for the first time since going public In the 2024 reporting year, the V-ZUG Group achieved net sales of CHF 591.7 million (previous year: CHF 585.4 million; + 1.1 %, currency adjusted + 1.5 %). Thanks to V-ZUG’s differentiation strategy, sales volumes increased again in most markets. The operating result (EBIT) amounted to CHF 25.3 million, 50.8 % above previous year (CHF 16.8 million). The EBIT margin increased to 4.3 % (previous year: 2.9 %). Despite high investments in the site transformation, the cash flow from operating and investing activities was a remarkable CHF 1.8 million (previous year: CHF 18.2 million). In view of the improved operating performance, the positive cash flow and the solid balance sheet, the Board of Directors will propose to the shareholders at the AGM an ordinary dividend as well as a withholding tax-free distribution from capital reserves, each amounting to CHF 0.45 per share; this totals CHF 0.90 per share. In 2025, V-ZUG expects sales and profitability to continue to improve. V-ZUG remains committed to its medium-term targets, including a sales growth of 3 % p.a. and an EBIT-margin of 10-13 %.
Positive development in den Swiss market and International’s own-brand business In the 2024 reporting year, V-ZUG generated net sales of CHF 591.7 million (previous year: CHF 585.4 million). The Swiss market showed a positive development following several turbulent years. Net sales increased by 3.2 % to CHF 496.8 million (previous year: CHF 481.4 million). Renovations and replacement of appliances developed positively, while new constructions remained rather subdued. In the 2024 reporting year, V-ZUG launched several differentiated products and optimised its sales process, resulting in stronger growth compared to the overall Swiss household appliances market. Despite the positive development in the own-brand business (+15.8 %), net sales in the International Market decreased by 8.8 % overall. Net sales increased significantly in the Asia/Australia markets, but only marginally in Europe. Deliveries to V-ZUG’s OEM partner in North America fell significantly behind 2023 due to their inventory reductions. International Markets accounted for 16.0 % of total net sales in the reporting period, slightly higher than at the end of the first half of 2024 (15.3 %). V-ZUG further expanded its presence in international metropolitan areas and opened new studios in Hamburg, Berlin, Milan and Sydney.
The operating result (EBIT) increased by 50.8 % to CHF 25.3 million (previous year: CHF 16.8 million). The EBIT margin increased to 4.3 % (previous year: 2.9 %). It amounted to 5.4 % in the second half of 2024. The improvement was achieved due to improved gross margin and strict cost control. V-ZUG continuously optimises internal processes as part of the initiative «Simplify V-ZUG» to remain competitive in a rapidly changing environment The Group net result rose by 83.2 % to CHF 21.4 million (previous year: CHF 11.7 million).
Cash flow from operating activities was CHF 58.0 million in the reporting year (previous year: CHF 80.5 million). It primarily decreased because the receivables from deliveries and services, which had significantly declined in the previous year, remained stable in the reporting year. At the same time, the inventory was further optimised, as in the previous year. Despite high investments in the site transformation, the cash flow after investing was a remarkable CHF 1.8 million (previous year: CHF 18.2 million). Thanks to the positive free cash flow, no third-party financing was necessary in the reporting year.
The balance sheet of the V-ZUG Group as of 31 December 2024 continues to be very solid with an equity ratio of 76.4 % (previous year: 74.9 %) as well as cash and cash equivalents of CHF 83.5 million (previous year: CHF 81.0 million). As of 31 December 2024, V-ZUG employed a total of 2,086 employees (31 December 2023: 2,066), including 93 apprentices.
Investments in the Swiss industrial sector The construction of the new “Zephyr Ost” production building was completed in the first quarter of 2024. This marks the completion of all buildings required for production. In 2024, numerous production-related facilities and workplaces were moved to the «Zephyr Ost» building. The move will be completed with the transfer of the last assembly line in the first half of 2025. With the completion of “Zephyr Ost”, V-ZUG has invested over CHF 300 million in the Swiss industrial landscape over the last eight years. The modern infrastructure enables efficient production and enduring attractive employment opportunities in Switzerland. The preliminary project for the new office building “Zephyr West” began during the reporting year; this building marks the final step in the transformation of the Zug site.
Commitment to sustainability: our path Decarbonisation was further advanced. V-ZUG reduced direct emissions by 5.4 % in the reporting year. V-ZUG has been producing carbon-neutrally in Switzerland, including compensation, since 2020.
V-ZUG is making progress along the path from the recycling economy to the circular economy. The circular pilot factory, where used devices are refurbished or dismantled, was further developed in the reporting year and its scaling has started. Our “Product as a Service” business model was expanded and is now available for the entire product range (kitchen and laundry). This involves providing appliances for use rather than selling them. V-ZUG remains responsible throughout the entire life cycle.
Proposal for a dividend and a distribution from capital reserves In view of the improved operating performance, the positive cash flow and the solid balance sheet, the Board of Directors will propose to the shareholders at the AGM an ordinary dividend as well as a withholding tax-free distribution from capital reserves each amounting to CHF 0.45 per share; this totals CHF 0.90 per share. This would be the first distribution since the public listing in 2020 and after significant investments at the Zug and Sulgen production sites.
2025 outlook Global uncertainties remain, but inflation has stabilised with declining interest rates. V-ZUG expects that consumer confidence will continue to recover. The real estate industry in Switzerland could be revitalised to some extent. The demand for energy-efficient products is supported by increasing environmental awareness. V-ZUG is optimally positioned to further increase market share. The focus is on the continuous development and platformisation of the product portfolio, further increasing customer satisfaction through value-added services, and ongoing internationalisation. In 2025, V-ZUG expects sales and profitability to continue to improve. V-ZUG remains committed to its medium-term targets, including a sales growth of 3 % p.a. and an EBIT-margin of 10-13 %.
Key Figures
Further information
This ad hoc announcement is available at https://www.vzug.com/gb/en/investor-relations-news and the 2024 Annual Report at https://www.vzug.com/gb/en/financial-reports.
About the V-ZUG Group 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). End of Inside Information |
2095873 06-March-2025 CET/CEST
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