Press Release
Mettlach, 20 July 2017
Interim report on the first half-year of 2017:
Villeroy & Boch confirms earnings target for year as a whole
- Consolidated revenue up 1.0 % year-on-year to EUR 402.4 million
- EBIT climbs 7.7 % to EUR 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 EUR 402.4 million.
In the Group's home market of Germany, consolidated revenue rose by EUR 0.9 million or 0.8 % to EUR 119.3 million. At EUR 283.1 million, revenue outside Germany was up 1.0 % on the previous year.
Orders on hand amounted to EUR 117.4 million as at 30 June 2017, an increase of EUR 43.5 million as against 1 January 2017. Orders on hand in the Bathroom and Wellness Division reached a new record high of EUR 96.4 million.
EBIT improves by 7.7 % to EUR 18.1 million
EBIT increased by EUR 1.3 million or 7.7 % to EUR 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 EUR 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 EUR 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: EUR 8.8 million
The Villeroy & Boch Group made investments totalling EUR 8.8 million in the first half of 2017 (previous year: EUR 7.4 million). At EUR 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.
Please find the complete Interim Report as a PDF-file for download here:
http://www.villeroyboch-group.com/en/investor-relations/publications.html
Further inquiry note:
Jessika Rauch
Head of PR
Tel: (+49) 6864 81-1344
Mail: [email protected]
or
Nicole Hofmann
Corporate Communications
Tel: (+49) 6864 81-1365
Mail: [email protected]
20.07.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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