DGAP-News: Villeroy & Boch AG / Key word(s): Half Year Results/Quarter Results Villeroy & Boch AG: Villeroy & Boch increases revenue and earnings/Goals for 2016 confirmed 20.07.2016 / 08:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Press Release Mettlach, 20 July 2016 Interim report on the first half of 2016: Villeroy & Boch increases revenue and earnings/Goals for 2016 confirmed * Consolidated revenue up 3.0 % to EUR 398.6 million * Revenue momentum increases in second quarter (+4.4 %) * Operating EBIT improves by 7.0 % to EUR 16.8 million * Growth and earnings targets confirmed for 2016 as a whole Revenue development: +3.0 % year-on-year The Villeroy & Boch Group increased its net revenue by 3.0 % year-on-year to EUR 398.6 million in the first half of the 2016 financial year. Revenue amounted to EUR 403.9 million (+4.4 %) on a constant currency basis, i.e. assuming unchanged exchange rates as against the previous year. Net revenue in the Group's domestic market of Germany climbed by EUR 8.3 million or 7.5 % to EUR 118.4 million. Revenue outside Germany was up by 1.2 % to EUR 280.2 million. Orders on hand improved by EUR 31.2 million compared to 1 January 2016 to EUR 94.5 million as at 30 June 2016, with the Bathroom and Wellness Division accounting for EUR 71.4 million of this figure. Operating EBIT improves by 7.0 % to EUR 16.8 million Operating EBIT rose by EUR 1.1 million or 7.0 % to EUR 16.8 million in the first six months of the financial year. As non-recurring income was not generated from the Gustavsberg real estate project in Sweden in the first half of 2016, operating EBIT is equal to total EBIT. Non-recurring income from this real estate project had amounted to EUR 1.0 million in the same period of the previous year (total EBIT: EUR 16.7 million). Income of a similar amount is not expected until later quarters this year. Development in the divisions The Bathroom and Wellness Division generated revenue of EUR 269.1 million in the first half of 2016, an increase of 6.4 % on the previous year. On a constant currency basis, revenue rose by 8.2 %; significant negative exchange rate effects resulted from developments in the Russian rouble, the Norwegian krone and the Mexican peso. On the Group's domestic market of Germany, revenue increased by 12.6 % in the year to date to EUR 81.9 million, due in part to major demand for DirectFlush WCs. There was also significant growth in revenue in China (+32.9 %), the UK (+12.2 %) and Sweden (+10.1 %). Following a relatively weak previous year, France also posted an increase in revenue again of 2.3 %. Revenue in Russia was down by 24.8 % on account of the prolonged difficult political and economic conditions and the weakness of the rouble; revenue was in decline in Italy (-8.7 %) due to the weak construction industry. The Tableware Division reported revenue of EUR 129.5 million in the first half of 2016. This corresponds to a decline in revenue of 3.3 %, though the figure for the previous year includes revenue from secondary brand business, which in 2016 is not expected until the second half of the year. On a constant currency basis, revenue contracted by 2.8 %; significant negative exchange rate effects resulted mainly from the development of the Australian dollar and pound sterling. Tableware revenue on the domestic market in Germany amounted to EUR 36.6 million (-2.3 %). Revenue declines were mainly seen in the US (-8.7 %), the UK (-6.6 %) and Italy (-5.5 %). In particular, revenue increases were made possible thanks to strong project business with hotels and restaurants in China (+89.9 %). The division also achieved key improvements in revenue in the Eastern Europe region (+6.5 %) and the major Benelux (+5.2 %) and France (+1.1 %) markets. The company's own e-commerce business performed well across all sales markets (+11.9 %). Investment volume in first half of 2016: EUR 7.4 million The Villeroy & Boch Group invested EUR 7.4 million in the first half of 2016 (previous year: EUR 7.5 million). At 73.0 %, more than two-thirds of the investment volume related to the Bathroom and Wellness Division, where the main areas of investment were new facilities and modernisation work at production sites in Germany, Hungary and Thailand. The Tableware Division also invested in new facilities for the Merzig plant in addition to the expansion and optimisation of retail activities. Outlook for 2016 as a whole The Villeroy & Boch Group is still assuming moderate momentum for the economy as a whole in the financial year. The company expects that the economy in Europe, despite the uncertainty caused by political debates, such as the referendum on the UK leaving the EU, will remain robust thanks mainly to strong domestic demand. The difficult conditions in the Russian market environment due to the lingering recession are still seen as cause for concern. "On the basis of the performance in the year to date, the high level of orders on hand and our market opinion, we are reiterating our revenue and earnings forecast for the year as a whole," said Frank Göring, CEO of Villeroy & Boch AG. The company is therefore still forecasting an increase in consolidated revenue of between 3 % and 6 %. The operating result is expected to improve by between 5 % and 10 %. 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: Katrin May Press & Public Relations Tel: (+49) 6864 81-2714 Fax: (+49) 6864 81-72714 Mail: [email protected] or Nicole Hofmann Press & Public Relations Tel: (+49) 6864 81-1365 Fax: (+49) 6864 81-71365 Mail: [email protected] --------------------------------------------------------------------------- 20.07.2016 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- 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, DE0007657207 WKN: 765723 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart End of News DGAP News Service --------------------------------------------------------------------------- 483907 20.07.2016