11.02.2016
Villeroy & Boch AG DE0007657231
DGAP-News: Villeroy & Boch AG: Villeroy & Boch in the 2015 financial year: All goals achieved without exception
DGAP-News: Villeroy & Boch AG / Key word(s): Final Results
Villeroy & Boch AG: Villeroy & Boch in the 2015 financial year: All goals
achieved without exception
11.02.2016 / 11:30
The issuer is solely responsible for the content of this announcement.
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Press Release
Mettlach, 11 February 2016
Villeroy & Boch in the 2015 financial year: All goals achieved without
exception
* Consolidated revenue up 4.9 % to EUR 803.8 million
* Operating EBIT improved by 9.6 % to EUR 42.1 million
* Group result up 12.3 % year-on-year to EUR 27.3 million
Consolidated revenue up 4.9 %
In the 2015 financial year, the Villeroy & Boch Group increased its revenue
by 4.9 % or EUR 37.5 million to EUR 803.8 million, thereby recording its
strongest revenue growth since the economic crisis in 2009. On a constant
currency basis, i.e. assuming unchanged exchange rates against the previous
year, revenue growth amounted to 4.1 %.
As in the previous years, the Group enjoyed robust revenue development in
its home market of Germany, where revenue rose by EUR 9.0 million or 4.1 %
year-on-year to EUR 227.8 million. In the other markets of Western Europe,
the Group recorded revenue growth in Norway (+8.9 %), Spain (+7.0 %) and
Sweden (+5.1 %) in particular. Driven by the strength of the pound
sterling, growth in the United Kingdom amounted to +14.6 %. Revenue
declined in France (-5.8 %) and Italy (-3.7 %), where the economy saw
below-average performance in 2015 as a whole despite a slight upturn in the
second half of the year. Revenue in Eastern Europe increased by 8.1 % to
EUR 74.6 million, with Hungary (+59.4 %) and Romania (+24.0 %) the
stand-out performers. Villeroy & Boch saw a largely currency-related
downturn in revenue in Russia (-8.4 %). In the Asia/Australia/Africa
region, revenue grew by 9.2 % thanks to strong project business, among
other things. This was primarily driven by the positive development in
China, the largest and most important market in the region (+22.3 %).
Operating result up 9.6 % on the previous year, non-recurring income from
real estate project in Sweden: EUR 1.4 million
The operating result (EBIT) increased by 9.6 % to EUR 42.1 million in the
2015 financial year. This was largely due to the Group's pronounced revenue
growth and the improvement in its revenue quality thanks to rising sales of
higher-priced product groups with strong margins. Productivity improvements
at the plants and reduced energy and commodity prices also had a positive
impact. These effects are reflected in the gross margin, which increased by
0.3 percentage points year-on-year to 44.9 %.
Taking into account the non-recurring income of EUR 1.4 million from the
sale of plant buildings in Gustavsberg (Sweden), consolidated EBIT amounted
to EUR 43.5 million. This represents a slight increase on the prior-year
figure of EUR 43.2 million even though non-recurring income was EUR 3.4
million lower than in 2014, a fact that underlines the strong improvement
in the Group's operating performance. The Group result rose by 12.3 % to
EUR 27.3 million.
Development in the divisions
The Bathroom and Wellness Division increased its nominal revenue by 5.9 %
to EUR 496.9 million in the 2015 financial year. On a constant currency
basis, divisional revenue rose by 6.9 %. In Germany, the market with the
highest revenue, the division outperformed the average growth rate within
the sector as well as the construction industry with revenue growth of 6.9
%. In Western Europe, the division recorded revenue growth in the United
Kingdom (+21.5 %) and the Netherlands (+9.3 %) in particular. The upturn in
revenue in Western Europe was due among other things to strong bathroom
furniture business and the high level of demand for DirectFlush WCs. In
Eastern Europe, the highest revenue growth was recorded in Hungary (+21.7
%), Romania (+19.0 %) and Poland (+12.9 %). Continued restraint in the
construction industry meant that revenue declined in both France (-5.7 %)
and Italy (-5.4 %). In Russia, the difficult economic and political
conditions and the massive depreciation of the rouble meant that revenue
stagnated compared with the previous year (-0.5 %); however, the division
recorded significant revenue growth of 33.7 % in local currency. Business
in China enjoyed extremely strong performance (+22.4 %) on the back of the
highly successful launch of the ViClean shower toilet collection in the
final quarter.
The operating result (EBIT) increased by 12.7 % to EUR 32.8 million as a
result of higher revenue with stronger margins, productivity improvements
in production, reduced energy and commodity prices and systematic cost
management in the area of administration.
The Tableware Division increased its revenue by a nominal 3.3 % to EUR
306.9 million. On a constant currency basis, revenue was essentially
unchanged as against the previous year (-0.4 %). The division enjoyed
extremely positive performance across all sales markets in terms of its
project business with hotels and restaurants (+6.7 %) and its own
e-commerce activities (+30.5 %). Tableware revenue in Germany remained
largely stable at EUR 87.4 million (-0.1 %). In Western Europe, the
strongest revenue growth was recorded in Norway (+17.6 %) and the United
Kingdom (+4.6 %). Economic factors led to a downturn in revenue in France
(-5.8 %) and Italy (-3.0 %) in particular. In Eastern Europe, significant
revenue growth was recorded in Poland (+13.3 %), among other markets.
Revenue in the region as a whole rose by 10.1 % to EUR 17.5 million.
Outside Europe, positive revenue development was recorded in South Korea
(+43.6 %), Japan (+22.9 %), China (+21.7 %) and the Americas region (+21.6
%) in particular. In Russia, revenue declined by 39.4 % as a result of the
massive depreciation of the rouble and muted consumer behaviour.
The Tableware Division saw stable year-on-year development with EBIT of EUR
9.3 million. The downturn in revenue in Villeroy & Boch's high-margin
Russian market was offset by growth in project business, e-commerce and
secondary brands as well as strict cost discipline in sales, marketing and
administrative structures.
Orders on hand, operating cash flow and net liquidity
Orders on hand increased by EUR 11.9 million year-on-year to EUR 63.3
million as of 31 December 2015. Of this figure, EUR 50.9 million related to
the Bathroom and Wellness Division and EUR 12.4 million to the Tableware
Division.
Net cash flow from operating activities amounted to EUR 34.1 million, down
EUR 16.8 million on the previous year. This was attributable primarily to
the increase in inventories compared with the previous year, particularly
for the Bathroom and Wellness growth markets, as well as the higher level
of trade receivables due to revenue development. Net liquidity amounted to
EUR 15.0 million, down slightly on the prior-year figure of EUR 15.8
million. Cash inflows from the improved Group result and the sale of the
former plant property in Sweden offset the financing requirements in
connection with the increased inventories.
Dividend
The Management Board and the Supervisory Board will propose to the General
Meeting of Shareholders on 1 April 2016 that the unappropriated surplus of
Villeroy & Boch AG be used to distribute a dividend in the amount of EUR
0.49 per preference share and EUR 0.44 per ordinary share, EUR 0.05 more
than in the previous year in each case.
Investments
Investments in property, plant and equipment and intangible assets amounted
to EUR 29.1 million in the 2015 financial year. Around 75 % of investments
were made in the Bathroom and Wellness Division, with a focus on the
optimisation of the production network. Investments in the Tableware
Division concentrated on the expansion and optimisation of the sales
network. The higher prior-year figure of EUR 44.6 million was due in
particular to investments in the new assembly and logistics centre in
Sweden and the new combined heat and power plant at the Mettlach site.
Assessment of the company's position
"We are extremely satisfied with the past financial year. We achieved all
of our goals without exception: our revenue growth represents our best
performance since the economic crisis in 2009, while we improved our
operating result once again. Villeroy & Boch stands for reliable positive
development that we intend to continue in the coming years," commented
Frank Göring, CEO of Villeroy & Boch AG.
Despite uncertainties in the emerging economies, the company expects the
global economy to enjoy a slight upturn in 2016 compared with the previous
year thanks to the positive outlook for the euro zone. To this end, the
International Monetary Fund is forecasting global economic growth of 3.4 %
(2015: 3.1 %). "Our aim is to increase consolidated revenue by between 3 %
and 6 % in 2016," added Göring. "We are anticipating growth in our
operating result of between 5 % and 10 %."
Please find the annual financial report 2015 on
http://www.villeroyboch-group.com/en/investor-relations/annual-report-2015
.html
Further inquiry note:
Annette Engelke
Head of Press & Public Relations
Tel: (+49) 6864 81-1397
Fax: (+49) 6864 81-71331
Mail: [email protected]
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11.02.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart
End of News DGAP News Service
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