Swiss appliance manufacturer V-Zug to cut costs

Following the slump in profits in the first half of the year, Swiss household appliance manufacturer V-Zug is resorting to more stringent cost-cutting measures.

V-Zug publishes profit warning and resorts to cost-cutting measures Keystone-SDA

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The Group expects sales and profits to plummet in 2025

Net sales for the current financial year are expected to be in the mid single-digit percentage range below the previous year’s figure, V-Zug announced. Last year, the company increased its turnover to CHF591.7 million. With a decline of 4 to 6%, V-Zug would therefore achieve sales of CHF556 to CHF568 million in 2025.

“The main reason for this is the declining market trend in Switzerland and in the international markets,” wrote the manufacturer of dishwashers and washing machines, for example. In some cases, orders were cancelled at short notice and unexpectedly.

Cancelled China project

In China, a major real estate project for which the orders were already on the books was simply cancelled, a company spokesperson told the news agency AWP. There had also been cancellations of two or three smaller real estate projects in Germany.

The lower volume will have a disproportionate impact on the operating result (EBIT) and profitability due to the fixed costs, the spokesperson added. A value adjustment will also have a negative impact on the financial result. Last year, V-Zug achieved an EBIT of CHF25.3 million and a net profit of CHF21.4 million.

However, the company’s management does not fear a slide into the red. V-Zug will remain in the profit zone for the year as a whole, said the company spokesperson.

Cost-cutting measures

The Group has now decided on an extended package of measures to optimise costs. These include savings in purchasing, process optimisation and the exploitation of additional synergy potential. There will be no job cuts across the board, said the spokesperson. However, the company is examining whether vacancies can be filled.

The market situation is likely to remain challenging in the coming year, the company estimates. In Switzerland, V-Zug is focusing on strengthening the sales organisation and on sales promotion measures. There is considerable growth potential in the international markets, even if the market situation is not expected to recover significantly in the coming year.

“Overall, despite the challenging market environment, V-Zug sees intact conditions for positive business development in the coming years, even if it has had to face a new dynamic that was not expected in this form since April 2025,” the company says.

Translated from German by DeepL/mga

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