V-ZUG again reports record sales and commits to Swiss production
Economic growth in Switzerland was dampened in 2011 by the international debt crisis and the strong Swiss franc. In many places, this led to problems on the export side and the relocation of jobs to other countries, especially in the second half of the year. Although the construction sector performed well in terms of volume, the whole industry suffered from massive pressure on margins.
In this difficult economic environment, V-ZUG generated record results in 2011 on revenues of CHF 485,5 million (+ 1 %). This figure does not include the revenues generated by the subsidiaries (Gehrig Group AG and SIBIRGroup AG recorded a total of CHF 93,2 million (- 2,5 %)). In a tough marketplace V-ZUG succeeded in expanding its position at the head of the Swiss market.
The main factors behind this positive development were the high quality, cutting-edge products coupled with the successful development and launch of innovations. Among other things, the entire range of tumble dryers has been converted to the new, energy-saving heat pump technology. V-ZUG has become established as a high-end brand for kitchen appliances. This trend has been reinforced by what is by far the best set of steamers on the market right now, a convincing design, a comprehensive range and the appearance of the most famous top Swiss chefs as brand ambassadors.
The underlying economic conditions have hampered the company’s expansion abroad, although it has achieved some notable successes. Developments in Australia, where V-ZUG set up its first international operation in 2009, were particularly positive.
All the indicators suggest the economy will slow in 2012. Given the lack of alternative investments, record-low mortgage interest rates and low apartment-vacancy levels, investing in property remains an attractive proposition for private and institutional investors. Consequently, the number of new residences completed should roughly match the high level seen last year. The Swiss household goods market will remain hard fought, with prices above all remaining under strong downward pressure.
V-ZUG is entering the new year in confident mood. The roll-out of numerous innovations, notably including the new generation of dishwashers featuring the world-exclusive SteamFinish function, will set new trends on the market. V-ZUG is the only company to still develop and manufacture dishwashers in Switzerland today. The planned expansion of the ZUG plant will make it possible to enhance the efficiency and flexibility of the production facility. These investments represent a clear commitment to the V-ZUG brand and Switzerland as location of manufacturing industry.
Head of Public Relations
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