Swiss premium appliance manufacturer V-ZUG Holding AG has reported its half-year results for 2025, revealing a year-on-year decline in net sales and profitability, amid a "challenging environment in Switzerland and Asia". Net sales stood at CHF 271.2 million, 4.5% lower than the previous year's CHF 284.1 million (currency adjusted -4.2%).
© V-ZUG
Operating profit (EBIT) dropped to CHF 3.0 million from CHF 8.8 million, with EBIT margin at 1.1% compared to 3.1% last year. Group net result also declined to CHF 1.6 million (previous year: CHF 8.7 million). However, the company emphasised that the gross profit margin remained stable due to 'efficiency improvements achieved through "Simplify" and the new partner model'.
V-ZUG is optimistic for the second half of the year, highlighting its order book and "a sustained systematic focus on the current needs of partners and customers". The company cautions that "given the half-year results, there is a risk that the annual results for 2025 will not exceed the previous year's level".
Sales in Switzerland fell by 3.4% to CHF 232.3 million due to a sluggish project market. To address this, V-ZUG has "realigned" its sales and project strategy and "engaged experienced specialists" to strengthen customer support. Service has also improved, with response times now averaging just three working days, 'an industry-leading response time that sets new standards'.
Internationally, net sales dropped 10.8% to CHF 38.9 million. While the Asian project business declined, the OEM segment in North America doubled to CHF 8.6 million. Europe remained stable, and V-ZUG continues expanding its global footprint with new studios in Melbourne and Bangkok, and participation at Salone del Mobile in Milan.
'In parallel, V-ZUG is identifying trends in online and specialised retail at an early stage and aligning the sales strategy accordingly,' the company stated. Its new partner model 'strengthens partnerships for the long term' by rewarding brand presentation and consultation quality.
Despite negative free cash flow of CHF -51.5 million (previous year: CHF -36.2 million), the company maintains a strong balance sheet with a 77% equity ratio.
Looking forward, V-ZUG sees "positive signs", including seasonality and growth initiatives focused on procurement savings and market expansion. "V-ZUG aims to increase net sales and profitability in the second half of 2025 compared to the previous year."
More information:
V-ZUG
www.vzug.com
