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Interim report on the third quarter of 2018: Villeroy & Boch reports revenue and earnings growth

Press release   •   Oct 19, 2018 08:11 BST

  • Consolidated revenue up 3.2 % on a constant currency basis and 1.4 % in nominal terms to € 611.3 million
  • EBIT improves by 5.3 % to € 25.8 million
  • Earnings target for 2018 as a whole confirmed


Revenue up 3.2 % year-on-year on a constant currency basis

In the first nine months of the 2018 financial year, the Villeroy & Boch Group increased its revenue on a constant currency basis, i.e. assuming unchanged exchange rates against the previous year, by 3.2 %. In nominal terms, revenue grew by 1.4 % to € 611.3 million. Accordingly, revenue performance was significantly impacted by negative exchange rate effects resulting from the development of the Swedish krona, the US dollar and the Russian rouble, among others. Revenue including licence income amounted to € 615.9 million.

Orders on hand amounted to € 78.6 million as at 30 September 2018. Of this figure, € 65.3 million related to the Bathroom and Wellness Division and € 13.3 million to the Tableware Division.

EBIT improves by 5.3 % to € 25.8 million

EBIT rose by 5.3 % to € 25.8 million in the first nine months of the financial year. This was largely due to the robust revenue and earnings development in the Bathroom and Wellness Division, as well as effective cost management.

Development by division

Revenue in the Bathroom and Wellness Division increased by 4.4 % to € 435.9 million in the first three quarters of 2018. On a constant currency basis, revenue rose by 6.1 %.

Revenue performance on the European market varied from region to region. While revenue growth was recorded in Southern Europe in particular (+11.3 %), development in Germany (-1.3 %) was impacted by the muted performance in the area of showroom business as a result of the unusually hot summer. In the growth region of Asia-Pacific, business in China enjoyed extremely strong performance (+49.9 %). This was due among other things to the high level of demand for ViClean shower toilets and rimless DirectFlush toilets.

The Tableware Division generated revenue of € 175.4 million in the first nine months of the current financial year, down 5.2 % on the previous year. On a constant currency basis, revenue declined by

-3.3 %. Revenue including licence income amounted to € 177.6 million.

Exchange rate losses impacted revenue development in the USA in particular (-4.7 %), whereas revenue in this market rose by 2.9 % on a constant currency basis. Germany saw lower revenue (-5.7 %), with the unusually long, hot summer having an adverse effect on visitor numbers, which also affected the Villeroy & Boch retails stores. By contrast, revenue growth was recorded in markets such as Italy

(+8.4 %) as well as in e-commerce (+7.0 %) thanks to intensified sales and marketing activities across all markets and sales channels.

Investment volume in the first nine months of 2018: € 25.7 million

The Villeroy & Boch Group made investments totalling € 25.7 million in the first three quarters of 2018 (previous year: € 15.9 million). At € 21.6 million, the majority of this figure related to the Bathroom and Wellness Division, where investments primarily focused on new facilities for the sanitary ware plants in Mettlach (Germany), Ramos (Mexico) and Hódmezővásárhely (Hungary). Investments in the Tableware Division concentrated on modernisation measures for the plants in Merzig and Torgau as well as the optimisation of the retail network.

Outlook for 2018 as a whole

“In the final quarter, we expect showroom business in the Bathroom and Wellness Division to increase again, and a strong Christmas business for the Tableware Division,” commented Frank Göring, CEO of Villeroy & Boch AG. On this basis and taking into account the latest market estimates and the course of business in the year to date, the Villeroy & Boch Group expects to record growth in consolidated revenue of between 2 % and 3 % for 2018 as a whole, accompanied by earnings growth of between 5 % and 10 %. 

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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