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Interim report on the first quarter of 2016:

Press release   •   Apr 20, 2016 07:53 BST

Villeroy & Boch starts new fiscal year with revenue and earnings growth

  • Consolidated revenue up 1.6 % to € 198.4 million
  •  Operating EBIT improves by 5.3 % to € 10.0 million
  •  Growth and earnings targets for 2016 as a whole confirmed


Revenue performance: +1.6 % year-on-year

In the first three months of the 2016 financial year, the Villeroy & Boch Group increased its revenue by 1.6 % year-on-year to € 198.4 million. On a constant currency basis, i.e. assuming unchanged exchange rates compared with the previous year, revenue amounted to € 199.1 million (+2.0 %).

Revenue in the Group's home market of Germany increased by € 0.6 million or 1.0 % to € 60.6 million. Revenue outside Germany rose by 1.9 % year-on-year to € 137.8 million. Orders on hand amounted to € 77.2 million as at 31 March 2016, an increase of € 13.9 million compared with the start of the year. The Bathroom and Wellness Division accounted for € 58.5 million of this figure.

Operating EBIT up 5.3 % to € 10.0 million

Operating EBIT increased by 5.3 % to € 10.0 million in the first three months of the financial year.

Development in the divisions

The Bathroom and Wellness Division generated revenue of € 129.2 million in the first quarter of 2016, an increase of 4.4 % as against the previous year. Revenue rose by 5.4 % on a constant currency basis. Significant negative exchange rate effects resulted from the development of the Russian rouble, the Mexican peso and the Norwegian krone.

In the Group's home market of Germany, revenue increased by 2.8 % to € 39.7 million in the first quarter. Significant revenue growth was also recorded in China (+25.3 %), the United Kingdom (+24.8 %), the Netherlands (+21.3 %) and Sweden (+18.8 %). Revenue in France
(-5.7 %) and Italy (-4.8 %) declined due to the sustained weakness of the construction industry. The continued difficult political and economic conditions and the weakness of the rouble meant that revenue in Russia fell by 33.0 %.

The Tableware Division reported revenue of € 69.2 million in the first quarter of 2016. This represents a year-on-year decrease of 3.2 %, but while the prior-year figure included revenue from project business with hotels and restaurants and business with secondary brands, comparable revenue is not expected to be generated until the coming quarters of 2016. Revenue declined by 3.9 % on a constant currency basis. Significant positive exchange rate effects resulted in particular from the development of the US dollar.

Revenue of € 20.9 million was generated in the Group's home market of Germany (-1.9 %). Revenue growth was also recorded in Belgium (+16.6 %), the Netherlands (+14.3 %) and the Eastern Europe region (+12.7 %) in particular. The division's e-commerce business enjoyed positive performance across all sales markets (+19.8 %). Downturns in revenue were recorded in Japan (-23.0 %), Italy (-10.7 %) and the USA (-8.9 %).

Investment volume in the first quarter of 2016: € 2.4 million

The Villeroy & Boch Group made investments totalling € 2.4 million in the first quarter of 2016 (previous year: € 2.9 million). Two-thirds (66.7 %) of this figure related to the Bathroom and Wellness Division, which invested in new facilities at the production sites in Germany, Romania, Thailand and the Netherlands. Investments in the Tableware Division related primarily to the newly opened retail stores in Helsinki (Finland) and Ringsted (Denmark).

Outlook for 2016 as a whole

"We are satisfied with our start to the 2016 financial year on the whole. Assuming continued moderate growth in the global economy and based on the significant increase in our orders on hand, we are confirming our revenue and earnings guidance for the full year," commented Frank Göring, CEO of Villeroy & Boch AG. This means that the company is continuing to forecast consolidated revenue growth of between 3 % and 6 % accompanied by an increase in operating EBIT of between 5 % and 10 %.

A summary table, see the attached PDF document.

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.

Attached Files

PDF document