DGAP-News: Villeroy & Boch AG: Villeroy & Boch reports revenue and earnings growth

Press Release

Mettlach, 20 April 2018

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

• Consolidated revenue up 3.4 % to EUR 208.0 million
• EBIT climbs 5.7 % to EUR 11.1 million
• Revenue and earnings targets for 2018 as a whole confirmed

Revenue development: up 3.4 % year-on-year
In the first quarter of the 2018 financial year, the Villeroy & Boch Group increased its revenue by 3.4 % year-on-year to EUR 208.0 million. On a constant currency basis, i.e. assuming unchanged exchange rates against the previous year, revenue growth amounted to 5.7 %. This means revenue was influenced by negative exchange rate effects to a considerable extent, with the US dollar, the Chinese renminbi and the Swedish krona seeing the most pronounced depreciation. Revenue including licence income amounted to EUR 209.7 million.
Orders on hand amounted to EUR 110.4 million as at 31 March 2018, an increase of EUR 3.4 million as against 1 January 2018. Of this figure, EUR 94.7 million related to the Bathroom and Wellness Division and EUR 15.7 million to the Tableware Division.

EBIT increases by 5.7 % to EUR 11.1 million
EBIT rose by 5.7 % to EUR 11.1 million in the first quarter 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 6.3 % to EUR 147.1 million in the first three months of the financial year. On a constant currency basis, revenue growth was even higher at 8.3 %.
In Villeroy & Boch's home market of Europe, revenue saw particularly pronounced growth in Northern Europe (+6.2 %) and the Benelux nations (+3.7 %). Revenue in Germany increased by 1.4 %. Outside Europe, China generated especially strong growth of 61.5 %. This was driven by a high level of demand for ViClean shower toilets, among other things.

The Tableware Division recorded revenue of EUR 60.9 million in the first quarter, down 3.0 % on the same period of the previous year. However, this development was largely attributable to negative exchange rate effects. On a constant currency basis, revenue was unchanged as against the previous year at EUR 62.8 million. Revenue including licence income amounted to EUR 61.7 million (on a constant currency basis: EUR 63.6 million).
In Europe, revenue remained largely stable at EUR 48.0 million (-0.6 %). Outside Europe, revenue growth of 46.4 % was generated in the Middle East/Africa region thanks to extremely successful project business. Revenue in the USA declined almost exclusively as a result of exchange rate effects (-14.0 %; on a constant currency basis: -0.6 %).
Revenue in the area of e-commerce developed positively across all markets. The Group achieved growth of 8.3 % which is attributed, among other things, to intensified sales and marketing activities.

Investment volume in the first quarter of 2018: EUR 4.8 million
The Villeroy & Boch Group made investments totalling EUR 4.8 million in the first three months of the financial year (previous year: EUR 3.0 million). Of this figure, EUR 3.8 million related to the Bathroom and Wellness Division, where investing activities primarily focused on new facilities for the ceramics plants in Mettlach/Germany, Ramos Arizpe/Mexico and Valence d'Agen/France. In the Tableware Division, investments primarily concentrated on new facilities and modernisation measures for the production site in Merzig, as well as new stores in Spain, the United Kingdom and Canada.

Outlook for 2018 as a whole
Despite risks including a potential intensification of the trade conflict with the USA, the Villeroy & Boch Group expects the world economy to continue to enjoy robust expansion in 2018 as a whole. "Our assessment of the market and our positive start to the 2018 financial year serve to reinforce our full-year revenue and earnings forecasts," explains Frank Göring, CEO of Villeroy & Boch AG. As previously, the company expects to increase its consolidated revenue by between 3 % and 5 % accompanied by EBIT growth of 5 % to 10 %.

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: presse@villeroy-boch.com

or

Nicole Hofmann
Corporate Communications
Tel: (+49) 6864 81-1365
Mail: presse@villeroy-boch.com