Villeroy & Boch AG

Earnings Release • Oct 20, 2015

News Details

Corporate | 20 October 2015 08:00

Villeroy & Boch AG: Villeroy & Boch increases revenue and earnings / Targets for 2015 confirmed

DGAP-News: Villeroy & Boch AG / Key word(s): Quarter Results/9-month
figures

2015-10-20 / 08:00

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Press Release
Mettlach, 20 October 2015

Interim report on the third quarter of 2015

Villeroy & Boch increases revenue and earnings / Targets for 2015 confirmed

* Consolidated revenue up 3.5 % year-on-year to EUR 578.4 million

* Operating EBIT climbs 5.5 % to EUR 21.1 million

* Growth and earnings targets for 2015 as a whole confirmed

Revenue development: +3.5 % year-on-year

In the first nine months of the 2015 financial year, the Villeroy & Boch
Group increased its net revenue by 3.5 % year-on-year to EUR 578.4 million.
Revenue rose by 2.6 % on a constant currency basis, i.e. assuming unchanged
exchange rates as against the previous year. Net revenue on the German
domestic market increased by 3.2 % to EUR 166.0 million, while revenue
outside Germany rose by 3.6 % year-on-year to EUR 412.4 million after EUR
398.0 million in the previous year.
Orders on hand amounted to EUR 68.6 million at 30 September 2015, up a
substantial EUR 17.2 million on the start of the year. At EUR 51.6 million,
the Bathroom and Wellness Division accounted for the majority of this
figure.

Operating EBIT improves by 5.5 % to EUR 21.1 million

In the period from January to September 2015, operating EBIT increased by
EUR 1.1 million or 5.5 % to EUR 21.1 million. This was due primarily to
efficiency improvements in the production network and the optimisation of
revenue quality thanks to an improvement in the product and country mix.
A total of three properties were sold to Värmdö municipality as part of the
Gustavsberg (Sweden) real estate project in the period to 30 September
2015, thereby generating non-recurring income of EUR 1.0 million (previous
year: EUR 3.2 million). The lower level of non-recurring income meant that
total EBIT declined year-on-year to EUR 22.1 million (previous year: EUR
23.2 million). As previously, the Group assumes that the total income from
this property transaction will amount to around EUR 17 million, of which
EUR 12.8 million have already been realised.

Development in the divisions

The Bathroom and Wellness Division increased its revenue by EUR 14.0
million or 3.9 % year-on-year to EUR 370.1 million as of the end of the
third quarter of 2015. Revenue amounted to EUR 373.9 million on a constant
currency basis, corresponding to an increase of 5.0 %. The main exchange
rate effects were due to negative changes in the Russian rouble and the
Swedish krona.
The positive revenue development enjoyed by ceramic product concepts was
driven in particular by the strong demand for DirectFlush rimless toilets
and ViClean shower toilets, as well as by the launch of new Mainstream
series.
In the Group's domestic market of Germany, revenue increased by 5.2 % in
the year to date. Outside Germany, revenue growth was recorded in the
United Kingdom (+24.4 %) and the Gulf States (+23.0 %) in particular.
Revenue in France (-7.6 %) and Italy (-6.7 %) continued to decline as a
result of the difficult economic conditions in the period under review,
although these markets stabilised in the third quarter.

The Tableware Division generated revenue of EUR 208.3 million in the period
from January to September 2015, corresponding to year-on-year growth of EUR
5.6 million or 2.8 %. At EUR 199.4 million, revenue on a constant currency
basis was down slightly on the previous year. Significant exchange rate
effects resulted from changes in the US dollar, the pound sterling and the
Swiss franc.
While revenue in the Tableware Division in Germany remained essentially
unchanged year-on-year, substantial nominal revenue growth was recorded in
Japan (+31.6 %), Norway (+26.1 %), Canada (+18.8 %) and Australia (+9.3 %)
in particular.

Investment volume in the first nine months of 2015: EUR 16.3 million

The Villeroy & Boch Group made investments totalling EUR 16.3 million in
the first nine months of 2015 (previous year: EUR 30.2 million). 73.0 % of
this figure related to the Bathroom and Wellness Division, where
investments primarily concentrated on modernisation measures and new
facilities for the sanitary ware factories in Mexico, Romania, Hungary and
Thailand. The Tableware Division invested predominantly in its own retail
stores. The Villeroy & Boch's substantial investment volume in the previous
year is due in particular to the construction of the assembly and logistics
centre in Sweden.

Outlook for 2015 as a whole

"We are continuing to forecast moderate economic growth for 2015 as a
whole. We expect the current weak economic development in emerging
economies such as China to be offset by the positive performance in the USA
and large parts of the euro zone. On this basis, and on the back of our
high level of orders on hand, we are continuing to forecast an increase in
consolidated revenue of between 3 % and 5 % and an improvement in the
operating result of more than 5 %," commented Frank Göring, CEO of Villeroy
& Boch AG. The company is continuing to keep a critical eye on the economic
crisis in Russia.

Please find the complete Interim Report as a PDF-file for download here:
http://www.villeroyboch-group.com/en/investor-relations/reports.html

Further inquiry note:
Annette Engelke
Head of Press & Public Relations
Tel: (+49) 6864 81-1397
Fax: (+49) 6864 81-71331
Mail: presse@villeroy-boch.com

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Language: English
Company: Villeroy & Boch AG
Saaruferstraße 1-3
66693 Mettlach
Germany
Phone: +49 (0)6864 81-0
E-mail: information@villeroy-boch.com
Internet: www.villeroy-boch.de
ISIN: DE0007657231
WKN: 765723
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart

End of News DGAP News Service

403715 2015-10-20