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Interim report on the first half of 2017: Villeroy & Boch confirms earnings target for year as a whole

Press release   •   Jul 20, 2017 08:34 BST

  • Consolidated revenue up 1.0 % year-on-year to € 402.4 million
  • EBIT climbs 7.7 % to € 18.1 million

Revenue development: up 1.0 % on previous year

In the first half of the 2017 financial year, the Villeroy & Boch Group increased its revenue by 1.0 % year-on-year to € 402.4 million.

In the Group's home market of Germany, consolidated revenue rose by € 0.9 million or 0.8 % to € 119.3 million. At € 283.1 million, revenue outside Germany was up 1.0 % on the previous year.

Orders on hand amounted to € 117.4 million as at 30 June 2017, an increase of € 43.5 million as against 1 January 2017. Orders on hand in the Bathroom and Wellness Division reached a new record high of € 96.4 million.

EBIT improves by 7.7 % to € 18.1 million

EBIT increased by € 1.3 million or 7.7 % to € 18.1 million in the first six months of the financial year. This was due in particular to the strong revenue performance in the Bathroom and Wellness Division.

Development by division

At € 283.2 million, revenue in the Bathroom and Wellness Division in the first half of 2017 was up 5.2 % on the same period of the previous year. Revenue in Germany increased by 5.4 %, due among other things to the sustained positive development of the bathroom furniture business. China also saw extremely positive revenue development (+49.2 %) thanks to the high level of demand for ViClean shower toilets. In the Gulf States, strong project business in particular led to revenue growth of 28.2 %. Within Europe, the Netherlands enjoyed especially positive revenue development (+13.7 %). Revenue declined in France (-3.7 %) and the United Kingdom (-7.9 %); in the latter case, however, this was due to the significant depreciation of the pound sterling, whereas revenue increased by 2.7 % on a constant currency basis.

The Tableware Division generated revenue of € 119.2 million in the first half of 2017, down 8.0 % on the same period of the previous year. Revenue development was affected by the ongoing strategy of focusing on higher-margin trade channels in particular while adopting a more cautious approach to discounts in order to improve the quality of revenue in the long term. In addition, some secondary brand business was shifted to licence business. Thanks to increased margins and higher licence income, however, the resulting downturn in revenue was reflected in EBIT only to a below-average extent.

Revenue in Germany (-9.9 %) and France (-8.6 %) declined compared with the previous year due to factors including the closure of unprofitable stores. Revenue fell by 7.6 % in the USA. The weakness of the pound sterling meant revenue in the United Kingdom declined by 5.4 %, whereas it improved by 4.8 % on a constant currency basis. Positive revenue development was recorded in South Korea (+47.8 %), China (+16.5 %) and the Gulf States (+5.2 %).

Investment volume in the first half of 2017: € 8.8 million

The Villeroy & Boch Group made investments totalling € 8.8 million in the first half of 2017 (previous year: € 7.4 million). At € 6.6 million, the majority of the investment volume related to the Bathroom and Wellness Division, which saw investments in the optimisation of the logistics centre in Losheim and new facilities for the production site in Mettlach with the aim of achieving further growth in production volumes. Investment activity in the Tableware Division related to new facilities for the production plants in Merzig and Torgau as well as the logistics centre in Merzig.

Outlook for 2017 as a whole

The Villeroy & Boch Group expects its consolidated revenue for the year as a whole to increase by between 2 % and 3 %. In terms of earnings, the Group is still expecting an increase of between 5 % and 10 % and is aiming for growth at the upper end of this range.

Villeroy & Boch:

Villeroy & Boch is one of the world's leading premium brands for ceramic products. The family business, which was founded in 1748 and is headquartered in Mettlach/Germany, stands for innovation, tradition and exceptional style. As a renowned lifestyle brand, Villeroy & Boch offers products from the sectors Bathroom and Wellness and Tableware, and is active in 125 countries.

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