Press release -
2019 financial year: Group result more than doubles at Villeroy & Boch
Consolidated revenue: € 833.3 million
The Villeroy & Boch Group generated consolidated revenue of € 833.3 million in the 2019 financial year, and was therefore within the target corridor that was adjusted after the first half of the year. Revenue declined by 2.3 % year-on-year.
Consolidated EBIT: € 103.4 million; operating consolidated EBIT: € 51.0 million
The Group result before interest and taxes (EBIT) amounted to € 103.4 million in the past financial year, significantly higher than the previous year’s figure of € 53.6 million. This is thanks in particular to non-recurring income of € 52.4 million, especially as the result of the disposal of property in Luxembourg. At € 51.0 million, operating EBIT was slightly lower than the previous year’s figure, above all on account of revenue effects.
Group result: € 80.4 million
The Group result more than doubled year-on-year to € 80.4 million in the 2019 financial year. The significant increase is primarily based on the non-operating result generated.
Development in the divisions
The Bathroom and Wellness Division generated revenue of € 554.0 million in the past financial year, with revenue performance varying in the different business areas: While revenue grew by 4.1 % and 1.1 % respectively in wellness and kitchen business, it declined in ceramic sanitary ware (-8.3 %), fittings (-1.4 %) and bathroom furniture (-1.3 %). The increase in wellness revenue was above all thanks to a good performance in Quaryl® bathtubs. The revenue contraction in sanitary ware products principally resulted from the difficult first half of the year, which was characterised by the reduction in inventories by customers and delays in project business in China in particular. The stabilisation of business in the third quarter and revenue growth in the fourth somewhat made up for the significant year-on-year revenue deficit seen earlier in the year.
The Tableware Division increased its revenue by 3.9 % to € 276.5 million in the past financial year. The biggest growth driver was e-commerce business (+16.3 %). E-commerce activities account for around 19.6 % of the Tableware Division’s total revenue across all regions. Project business also developed positively (+3.9 %), particularly in Europe and the Americas. Growth of 1.3 % was achieved thanks to optimised shop management at the Group’s own retail stores. There was also a positive development in business with retail partners, above all on European markets.
Investments in property, plant and equipment and intangible assets amounted to € 33.2 million in the past financial year. The Bathroom and Wellness Division accounted for the majority of investment at 82.5 %, focusing on the acquisition of new production facilities for ceramic sanitary ware plants in Germany and abroad. The Tableware Division mainly invested in new tools and machinery for production, and in the optimisation of its retail network.
At the General Meeting of Shareholders on 27 March 2020, the Supervisory Board and the Management Board will propose that the unappropriated surplus of Villeroy & Boch AG be used to distribute a dividend of € 0.60 per preference share and € 0.55 per ordinary share.
Assessment of the company’s position
“While our Tableware Division developed positively over the whole of 2019, revenue performance in the Bathroom and Wellness Division was softer than expected in the first half of the year. Overall, however, we achieved our forecast for the year that was adjusted in the summer of 2019, and generated an excellent Group result thanks to our non-recurring income,” said Frank Göring, CEO of Villeroy & Boch AG.
The Group is striving for minor growth in revenue and operating earnings in the 2020 financial year.
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.