21.10.2013 DE0007657231
DGAP-News: Villeroy & Boch AG: Villeroy & Boch compensates for revenue downturn in first half of year and improves operating result by 8 %

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DGAP-News: Villeroy & Boch AG / Key word(s): Quarter Results Villeroy & Boch AG: Villeroy & Boch compensates for revenue downturn in first half of year and improves operating result by 8 % 21.10.2013 / 08:00 --------------------------------------------------------------------- Press Release Mettlach, 21 October 2013 Interim report on the third quarter of 2013 Villeroy & Boch compensates for revenue downturn in first half of year and improves operating result by 8 % * Revenue after first three quarters unchanged year-on-year at EUR543.3 million. * Operating EBIT up 8 % year-on-year at EUR18.1 million. * First tranche of sale of plant buildings in Sweden realised in the amount of EUR7.4 million, resulting in year-on-year EBIT growth of 52 % to EUR25.5 million. * Revenue growth of +2 % expected for 2013 as a whole; forecast operating result (EBIT) for 2013 remains unchanged. Revenue at prior-year level In the first nine months of the 2013 financial year, the Villeroy & Boch Group generated net revenue of EUR543.3 million, a figure that was unchanged as against the same period of the previous year. Net revenue generated on the German market increased by 5.8 % year-on-year to EUR156.1 million. Revenue generated outside Germany amounted to EUR387.2 million (previous year: EUR395.7 million). The global economy saw inconsistent development in the period under review. In the USA, the economy picked up pace on the back of increased consumer spending. The German economy also remained on the path to recovery. In the euro zone markets that are important to Villeroy & Boch, the downturn in economic output slowed despite the sustained high level of unemployment. With the announcement of the end to the US Federal Bank's highly expansive monetary policy, however, the economic outlook for the emerging economies has deteriorated considerably. Operating earnings (EBIT) up 8 % year-on-year; non-recurring income from real estate sale leads to further increase in EBIT and consolidated earnings Operating earnings before interest and taxes (EBIT) of the Villeroy & Boch Group amounted to EUR18.1 million in the first nine months of the current financial year, up EUR1.3 million or 7.7 % on the same period of the previous year. This is primarily due to efficiency improvements in production. In addition to operating earnings, a non-recurring effect of EUR7.4 million was recognised in the third quarter for the first tranche of income from the sale of the plant buildings in Sweden. Including the non-recurring income from the real estate sale, EBIT amounted to EUR25.5 million compared with EUR16.8 million in the previous year (+51.8 %). Accordingly, consolidated earnings also increased from EUR6.0 million to EUR13.2 million. Development in the divisions In the first nine months of 2013, the Bathroom and Wellness Division recorded revenue of EUR346.2 million, down 2.7 % on the figure for the same period of the previous year. The downturn in revenue in the first half of the year, which was primarily attributable to the financial crisis in the euro zone as well as the sustained winter weather and the weakness of the construction industry, was partially offset by the year-on-year revenue growth of +1.4 % in the third quarter. For example, revenue development in Russia improved from -29.0 % (as of 30 June 2013) to 7.3 % for the first nine months of the year. Australia (+42.9 %) and Sweden (+10.8 %) enjoyed above-average revenue performance. Revenue in the Group's important domestic market of Germany also increased (+1.7 %). Highly encouraging revenue growth was recorded in the areas of fittings (+4.7 %) and bathroom furniture (+4.6 %). This was driven in particular by the markets of Central Europe and Scandinavia. In China, we recorded significant revenue growth of 24.8 % in the third quarter on the back of the further expansion of our distribution network. This meant that the revenue shortfall in the first half of the year as a result of the higher level of taxation on the sale of property was almost entirely recovered in the period under review ( 2.8 %). Additionally, the third quarter saw the opening of a dedicated warehouse in China, which means that we can now also reach smaller and medium-sized customers and satisfy time-critical orders at short notice. In North America, the establishment of a distribution network for the sales partnership with TOTO USA develops according to plan. The Tableware Division continued to enjoy highly encouraging revenue development. Between January and September 2013, we generated revenue of EUR197.1 million, up EUR9.7 million or 5.2 % on the previous year. This extremely positive development was driven in particular by the revenue growth of 13.4 % in Germany, which is primarily attributable to the very strong sales of our new products 'Mariefleur Gris' and 'Cooking Elements' as well as increased marketing efforts and the opening of additional retail stores. Outside Germany, the markets of Eastern Europe (+27.0 %), Switzerland (+9.4 %), Russia (+5.6 %) and the United Kingdom (+3.8 %) saw particularly strong revenue development. Encouragingly, Spain (+3.1 %) also enjoyed positive revenue performance. Lower revenue was recorded in Australia ( 9.7 %) and France ( 2.1 %). Decision by European Court in antitrust proceedings 'incomprehensible' On 16 September 2013, the European Court announced its verdict on the action filed by the affected Villeroy & Boch companies against the decisions by the European Commission in the so-called bathroom case. The Court ruled that the decision by the European Commission was invalid in some respects but did not reduce the amount of the fines imposed. Frank Göring, CEO of Villeroy & Boch AG: 'We find it incomprehensible that the Court did not correct the decision by the European Commission and did not reduce the fine. We consider the EU antitrust proceedings to be fundamentally questionable; the review conducted by the Court is not consistent with the generally accepted principles of German law. We are currently examining the reasons for the verdict in detail, after which we will decide whether to lodge an appeal.' As the fines were already paid in 2010 and sufficient provisions were recognised for the costs of the legal proceedings, the verdict of the European Court will not have an impact on earnings in the current financial year. Outlook for the 2013 financial year 'We are happy to have been able to compensate for the downturn in revenue in the first half of the year with a good third quarter in which we outperformed the previous year by almost 2 %. Our strong performance in September in particular gives us important momentum going into the final quarter,' commented Frank Göring. 'We are now forecasting revenue growth of 2 % for 2013 as a whole. We still expect operating EBIT to increase by more than 5 % thanks to the rationalisation of our production activities and our workflows and structures in the areas of administration, sales and logistics,' Göring confirmed. 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: Almut Kellermeyer Head of Presse & Public Relations Tel: +49(0)6864 81-1397 Fax: +49(0)6864 81-21397 Mail: presse@villeroy-boch.com End of Corporate News --------------------------------------------------------------------- 21.10.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- 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: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 235284 21.10.2013

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