V-ZUG enjoys constant growth

PRESS RELEASE


V-ZUG enjoys constant growth


Revenue record beaten again
Against the backdrop of a recovery across parts of the world and a Swiss economy that has performed better than expected, V-ZUG Ltd. generated revenues of CHF 480.9 million in 2010, up 8.9 % on the previous year and again beating its previous record. These figures do not include the revenues recorded by the subsidiaries (GehrigGroup and SIBIRGroup with an aggregate of CHF 95.6 million, up 1.4 % compared with 2009). This strong growth enabled V-ZUG to boost its share of the market against very strong competition and expand its leading position in the Swiss market.

This strong performance was driven by innovations that again underscore the technological competence fielded by V-ZUG. The market responded positively to the addition of the new 45 series to the FutureLine range of kitchen appliances. The new line includes the Combi-Steam XSL boasting the biggest capacity in its class and the world-exclusive GourmetSteam and BakeOmatic programmes. The Adora SLQ washing machine featuring the steam anti-crease and WetClean innovations and the energy-saving Adora TSL WP heat-pump dryer were each supplemented by a range based on the new technology, which similarly contributed to the large increase. A very pleasing performance was also recorded by Adora dishwashers, the only dishwashers on the market developed and produced exclusively in Switzerland.

The company’s expansion in international markets was slowed in 2010 by the patchy yet hesitant recovery in the global economy overall. The company has been selling a new export range under the proprietary V-ZUG brand in selected international markets since mid-2009. The export activities have been stepped up constantly since then and initial successes can already be observed in individual markets. Establishing a less well-known brand in the premium segment abroad does, however, require plenty of patience and intensive groundwork in the various markets. A further agreement has been signed with a new distribution partner in Singapore.

The commissioning of the new ZUGgate logistics centre and the new production block has helped to enhance V-ZUG’s competitiveness.

Outlook
The overall demand for household appliances is unlikely to increase much in 2011 on account of a decline in the construction of new housing. The international markets will similarly fail to experience a tangible improvement as the long-term effects of the financial and debt crisis remain uncertain. The already tough competition in these markets will become even more intense as a result. Nevertheless, V-ZUG is confident of being able to build on its leading market position primarily on the back of groundbreaking innovations set to be unveiled at the start of 2011 coupled with strong investment at home and abroad (customer care, research and development, and productivity enhancements).

Contact:
V-ZUG AG
Daniela Hotz
Head of Public Relations
Industriestr. 66
6301 Zug
Tel. 041 767 68 68
Fax 041 767 98 68
E-mail: daniela.hotz@vzug.ch