- Consolidated revenue up 3.5 % to € 416.6 million
- EBIT climbs 5.0 % to € 19.0 million
- Revenue and earnings targets for 2018 as a whole confirmed
Revenue development: up 3.5 % on previous year
In the first half of the 2018 financial year, the Villeroy & Boch Group increased its revenue by 3.5 % year-on-year to € 416.6 million. On a constant currency basis, i.e. assuming unchanged exchange rates against the previous year, revenue growth amounted to 5.7 %. Significant negative exchange rate effects resulted from the development of the US dollar, the Swedish krona and the Russian rouble. Revenue including licence income totals € 419.6 million. Orders on hand amounted to € 103.6 million as at 30 June 2018 (31 December 2017: € 107.0 million). Of this figure, € 81.8 million related to the Bathroom and Wellness Division and € 21.8 million to the Tableware Division.
EBIT improves by 5.0 % to € 19.0 million
EBIT rose by 5.0 % to € 19.0 million in the first half of 2018, largely on the back of extremely strong revenue and earnings performance in the Bathroom and Wellness Division.
Development by division
Revenue in the Bathroom and Wellness Division increased by 7.0 % to € 303.0 million in the first half of 2018. On a constant currency basis, revenue growth was even higher at 8.9 %.
On the European market, Southern Europe enjoyed particularly positive development (+18.4 %), while revenue in Germany declined slightly (-1.1 %). Outside Europe, the growth region of Asia-Pacific saw particularly strong revenue performance (+49.7 %). This was driven by the high level of demand for ViClean shower toilets, among other things.
The Tableware Division generated revenue of € 113.6 million in the first half of 2018, down 4.7 % on the same period of the previous year. This development was largely attributable to negative exchange rate effects. On a constant currency basis, revenue was down 2.0 % on the previous year. Revenue including licence income amounted to € 115.0 million.
In Europe, Germany saw falling revenue (-2.9 %), while revenue growth was recorded in the Benelux countries in particular (+4.2 %). Revenue in the USA (-9.9 %) and the Middle East/Africa (-0.6 %) declined as a result of exchange rate effects but would have risen by 1.6 % and 4.8 % respectively on a constant currency basis.
Revenue in the area of e-commerce developed positively across all markets. The Group achieved growth of 10.5 % on the back of intensified sales and marketing activities, among other things.
Investment volume in the first half of 2018: € 15.2 million
The Villeroy & Boch Group made investments totalling € 15.2 million in the first half of 2018 (previous year: € 8.8 million). At € 12.9 million, the majority of this figure related to the Bathroom and Wellness Division, where investments primarily focused on new facilities for the production sites in Mettlach (Germany), Ramos (Mexico) and Hódmezövársárhely (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
“We are continuing to anticipate a robust expansion in the world economy in 2018 as a whole, despite risks such as the potential escalation of international trade conflicts. We are reiterating our revenue and earnings targets for 2018,” states Frank Göring, CEO of Villeroy & Boch AG. This means the company expects to increase its consolidated revenue by between 3 % and 5 % accompanied by earnings growth of 5 % to 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.