21.10.2013
Villeroy & Boch AG DE0007657231
DGAP-News: Villeroy & Boch AG: Villeroy & Boch compensates for revenue downturn in first half of year and improves operating result by 8 %
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
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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: [email protected]
End of Corporate News
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Language: English
Company: Villeroy & Boch AG
Saaruferstraße 1-3
66693 Mettlach
Germany
Phone: +49 (0)6864 81-0
E-mail: [email protected]
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
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