V-Zug company puts Middle East on hold

After a disappointing fiscal year in 2025, V-Zug is off to a good start in the new half of the year. Its products are in particularly strong demand in Switzerland and the USA.
 

V-Zug, the Zug-based household appliance manufacturer, is pulling itself out of the slump. After a weak fiscal year, it has announced improved figures for the first half of 2026, increasing its sales to CHF 284.5 million, representing a 4.9% increase compared to the previous year. Gross profit also rose from CHF 3 million to CHF 7.9 million. "The solid start to 2026 confirms our commitment to consistently pursuing our refined strategy and our initiatives for targeted growth and further efficiency and cost optimisation," says Christoph Kilian, CEO of V-Zug.

The drivers of this growth are both the positive sales development in Switzerland and the North American business. “The increase in the Swiss market stems primarily from business with our retail partners,” adds Christoph Kilian. In Switzerland, V-Zug distributes its appliances through a broad network of specialist retailers.

The V-Zug logo at its headquarters in Zug              Photo: Dominik Wunderli
 

US business flourishes despite tariffs
Although the private label business via subsidiaries in various parts of the world was somewhat weaker at CHF 28.6 million (previous year: CHF 30.2 million), total international revenue increased. This is mainly due to the North American business with an OEM partner: “The economy in the USA is performing well, and we offer one of the best products in America,” says Christoph Kilian.

Net revenue rose from CHF 8.6 million to CHF 15 million, more than compensating for the slight decline in sales at the other subsidiaries. The company is also managing well with the currently low tariffs. The planned market entry into the United Arab Emirates has now been put on hold, with negotiations being suspended due to the war.

With the construction of the new Zephyr West headquarters in Zug, the final phase of the site transformation will be completed in 2028, a project costing the company a total of CHF 350 million. Until the transformation is finished, investment costs will remain high, and free cash flow correspondingly low. Compared to the previous year, however, cash flow increased by CHF 20 million, due in part to improved operating results.

The product range has been expanded in all price segments. Looking ahead, Christoph Kilian stated that the company remains cautiously optimistic, given the ongoing challenging macro-economic and geopolitical situation.