2025 Half-Year Results Below Previous Year

Zug, 23 July 2025

MEDIA / INVESTOR RELEASE

Ad hoc announcement pursuant to Art. 53 LR
Introduction of a new partner model; challenging environment in Switzerland and Asia

In the first half of 2025, V-Zug achieved net sales of CHF 271.2 million, 4.5% below the previous year (CHF 284.1 million; currency adjusted -4.2%). While net sales in the domestic market Switzerland as well as Asia decreased, Europe developed steadily and North America positively. The operating profit (EBIT) amounted to CHF 3.0 million, thus declining year on year (previous year: CHF 8.8 million). The decline can primarily be attributed to lower sales volumes. The order book is encouraging, largely due to international projects in the second half of the year. It is anticipated that seasonal effects, efficiency improvements and a sustained systematic focus on the current needs of partners and customers, both domestically and abroad, will also contribute to an improvement in results. V-ZUG aims to increase net sales and profitability in the second half of 2025 compared to the previous year. Given the half-year results, there is a risk that the annual results for 2025 will not exceed the previous year’s level.

In the first half of 2025, sales amounted to CHF 271.2 million, which is 4.5% below the previous year (CHF 284.1 million). The decline is attributable to lower sales volumes in the domestic Swiss market and in Asian markets, while Europe remained stable and North America recorded positive growth. Currency-adjusted, net sales declined overall by 4.2%. The first half of 2025 included two working days less than in the same period of the previous year. Without calendar and currency effects, net sales decreased by 3.1%.

Stable gross profit margin 
The operating result (EBIT) amounted to CHF 3.0 million, which is lower than the previous year (CHF 8.8 million). Overall, the EBIT margin reached 1.1% (previous year: 3.1%). The gross profit margin remained stable despite a lower utilisation of production capacities. This is – in part – thanks to the efficiency improvements achieved through “Simplify” and the new partner model, which now takes into account not only volume but also brand presentation and consulting quality. The decline in EBIT is mainly attributable to lower sales volumes as well as higher depreciation resulting from the site trans-formation. Structural costs were kept stable despite future-oriented costs, such as the establishment of new V-ZUG Studios. The Group net result amounted to CHF 1.6 million (previous year: CHF 8.7 million).

In the first half of 2025, cash flow from operating activities amounted to CHF -22.3 million (previous year: CHF -10.8 million). The deviation is primarily attributable to the course of business and a greater increase in inventory levels compared to the previous year. As a result of the high investments that continue to be made in the site transformation and equipment, cash flow from investment activities amounted to CHF -29.1 million (previous year: CHF -25.3 million). Free cash flow amounted to CHF -51.5 million (previous year: CHF -36.2 million).

The balance sheet of the V-ZUG Group as of 30 June 2025 continues to be very solid with an equity ratio of 77.0% (30 June 2024: 76.4%) as well as cash and cash equivalents including securities of CHF 34.1 million (30 June 2024: CHF 45.5 million). With the start of construction work on the office and laboratory building “Zephyr West”, V-ZUG has, as announced, taken on external funds for the first time. From the approved credit facility, CHF 10.0 million has been allocated to short-term liabilities.

Swiss market: realignment of project business and sales strategy
In the first half of 2025, the net sales of CHF 232.3 million in the Swiss market declined compared to the previous year (previous year: CHF 240.5 million; -3.4%). The sluggish project business was realigned in the first half of the year, allowing for more targeted support for customers. It is expected that the engagement of experienced specialists and intensified project support compared to previous years will lead to greater visibility and have a positive impact on sales in the medium term. Furthermore, the service organisation has been strengthened and the average response time from initial customer contact to device repair has been reduced from around four to three working days – an industry-leading response time that sets new standards. In parallel, V-ZUG is identifying trends in online and specialised retail at an early stage and aligning the sales strategy accordingly. A fair and transparent partner model not only strengthens partnerships for the long term but also lays a foundation for sustainable growth. The procurement conditions offered to the partners are based on an objective assessment of the respective contribution to the strength of the V-ZUG brand; this includes aspects such as brand presentation, the quality of consultation provided to customers and growth. The concept accommodates different business models, allowing brick-and-mortar retail with or without showrooms, wholesale and online retail to successfully operate side by side. After the transitional phase, positive volume development is expected in the second half of the year, also thanks to additional sales initiatives. 

International: short-term challenges, long-term growth initiatives
Regionally different developments shaped international business in the first half of 2025. Overall, net sales decreased by 10.8% (currency adjusted: -8.7%) to CHF 38.9 million (previous year: CHF 43.6 million); net sales in the own-brand business declined by 23.0% to CHF 30.2 million (previous year: CHF 39.3 million), while the OEM business doubled to CHF 8.6 million (previous year: CHF 4.3 million.). 

In Europe, net sales remained largely at the previous year’s level. In the Asian markets, net sales in the project business decreased in comparison to the exceptionally strong first half of 2024. The decline is partially due to the postponement of some projects planned for the first half of the year, with the weakened momentum in the Chinese construction sector increasingly having an impact on V-ZUG as well. The OEM business in North America increased significantly in the first half of the year. In the last one and a half years, net sales were at an unusually low level due to inventory reduction and product turnover. Order intake is once again showing a positive development.

New studios in Melbourne and Bangkok, along with the V-ZUG presence at the Salone del Mobile in Milan, reinforce the company’s commitment to increasing brand awareness in the international market. Market expansion is also advancing with the V-ZUG presence established in Dubai through a partnership with a local distribution partner.

2025 outlook
The economic environment remains challenging. Even so, there are positive signs: the order book, especially the international projects scheduled for the second half of the year, gives rise to optimism about the coming months. Seasonality also has a strong impact in the market, meaning that the second half of the year is usually stronger than the first. 

The “Simplify” initiative will see efficiency improvements being implemented this year. Additional savings are expected from the projects initiated to reduce procurement costs. In addition, V-ZUG launched targeted growth initiatives in the second quarter to further develop the business in Switzerland and in the International Market through enhanced market penetration, the expansion of the retail and project business, and consistent differentiation.

Based on the order book in the international markets and the initiated strategic measures, V-ZUG aims to increase net sales and profitability in the second half of 2025 compared to the previous year. Given the half-year results, there is a risk that the annual results for 2025 will not exceed the previous year’s level.

Key Figures

Further information

This ad hoc announcement is available at www.vzug.com/gb/en/investor-relations-news and the 2025 Half-Year Report at www.vzug.com/gb/en/financial-reports.
 

Key dates

Media release (PDF)

About the V-ZUG Group

Swiss perfection for your home. Since 1913.

V-ZUG is Switzerland’s leading brand in household appliances and markets its products in Switzerland and selected international markets. 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, 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/gb/en/privacy-statement.