18.07.2013
Villeroy & Boch AG DE0007657231
DGAP-News: Villeroy & Boch AG: Earnings targets for 2013 as a whole confirmed; revenue increase anticipated at lower end of corridor (+3 %)
DGAP-News: Villeroy & Boch AG / Key word(s): Half Year Results
Villeroy & Boch AG: Earnings targets for 2013 as a whole confirmed;
revenue increase anticipated at lower end of corridor (+3 %)
18.07.2013 / 08:00
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Press Release
Mettlach, 18 July 2013
Villeroy & Boch: Interim Report on the Second Quarter of 2013
Earnings targets for 2013 as a whole confirmed; revenue increase
anticipated at lower end of corridor (+3 %)
* Revenue for the first six months down 1 % year-on-year at EUR359.8
million
* EBIT at prior-year level of EUR11.9 million, consolidated earnings
improve by 13 %
* Agreement for sale of Gustavsberg property (Sweden) signed in June 2013
Revenue down slightly on previous year
The Villeroy & Boch Group generated net revenue of EUR359.8 million in the
first half of 2013, down 0.9 % on the previous year's figure of EUR363.2
million.
Net revenue on the German market was up 6.2 % year-on-year at EUR103.3
million. Revenue generated outside Germany amounted to EUR256.5 million
(previous year: EUR265.9 million).
The global economy saw inconsistent development in the first half of 2013.
While there was a slight upturn in Asia, the United States and Germany,
economic development in the euro zone markets that are important to
Villeroy & Boch continued to deteriorate as a result of the unresolved
sovereign debt crisis and the associated uncertainty concerning the
financial policy of the countries affected. In Central Europe, the impact
of adverse weather conditions also led to a slump in construction activity
and a further slowdown in employment.
EBIT stable, consolidated earnings improved
The Villeroy & Boch Group reported earnings before interest and taxes
(EBIT) of EUR11.9 million as at the end of the first half of the year, the
same as in the prior-year period. Consolidated earnings improved from
EUR4.5 million to EUR5.1 million (up 13.3 %).
Agreement signed for sale of Gustavsberg property (Sweden)
The agreement for the sale of the Gustavsberg property (Sweden) was signed
in June 2013. The property will be sold in several tranches subject to the
legal approval of the development plan required for the construction of
residential units by the Swedish investor Ikano Bostad. In accordance with
the terms of the contract, revenue is expected to be recognised in the 2013
and 2014 financial years. The total income may amount to up to EUR17
million. The recognition of the first instalment is expected in the fourth
quarter of this year.
Development in the divisions
The Bathroom and Wellness Division generated revenue of EUR234.0 million in
the first half of 2013, down 4.6 % or EUR11.3 million on the same period of
the previous year.
This development was primarily due to the impact of the euro zone financial
crisis and the sustained winter weather in Europe and Russia. The latter
factor had an adverse effect on the construction industry in terms of both
new building and renovation activity. Examples include the downturn in
revenue in Russia (-29.0 %) and the Netherlands
(-15.4 %).
By contrast, Sweden saw positive revenue development (+13.4 %), while
revenue performance in Germany was stable with growth of 0.7 %.
Factors including the higher level of taxation on the sale of property led
to a slowdown in project business in China, resulting in a downturn in
revenue of 14.8 %. The establishment of a dedicated warehouse in China is
planned in order to help the development of retail business in the country.
Meanwhile, Australia enjoyed encouraging revenue performance (+28.7 %).
In North America, the establishment of a distribution network for the sales
partnership with TOTO USA developed according to plan. The downturn in
revenue in the US (-43.8 %) was primarily attributable to the sale of the
St. Thomas Creation brand. The lower level of revenue in Mexico (-28.8 %)
was largely due to the targeted withdrawal from low-margin local project
business in the previous year.
The Tableware Division generated revenue of EUR125.8 million in the
reporting period from January to June 2013, and was therefore up EUR7.9
million or 6.7 % on the previous year.
This positive development was driven in particular by the revenue growth of
18 % in Germany. Reasons for this included the good performance of new
products such as 'Mariefleur Gris' and 'Cooking Elements', the successful
intensification of promotional and impulse business, and the opening of
additional retail stores. Outside Germany, the markets of Eastern Europe
(+24.3 %), Russia (+22.2 %), Switzerland (+12.6 %), Austria (+10.4 %) and
the UK (+6.8 %) saw particularly strong revenue growth. The downturns in
the first quarter of the current year were more than offset in Italy (+1.6
%) and almost offset in Spain (-0.7 %) in the second quarter.
Lower revenue was recorded in Australia (-4.0 %) and France (-2.7 %).
Investments
The Villeroy & Boch Group invested EUR4.2 million in the first six months
of the 2013 financial year (previous year: EUR11.2 million). EUR2.9 million
or 69 % of this related to the Bathroom and Wellness Division. We expect
investments for 2013 as a whole to amount to EUR26 million as a result of
postponements.
Outlook for the 2013 financial year
'The fact is that given our ambitious targets, we cannot be satisfied with
our revenue performance. However, we had planned in advance that the first
six months would be affected by the difficult economic environment. Our
performance is therefore in line with our expectations, albeit at the lower
end of the range,' said Frank Göring, CEO of Villeroy & Boch AG.
'We are still assuming that revenue will be up for 2013 as a whole.
However, this growth will be at the lower end of our previously forecast
corridor, namely 3 %. In operative EBIT we are still projecting an increase
that will be significantly above our forecast revenue growth, i.e. more
than 5 %,' emphasised Göring.
The revenue and earnings targets will be achieved with continued intensive
investments in high-growth markets (particularly in Asia) and sales
measures in the saturated markets of Europe. The rationalisation of
production and in workflows and structures in the areas of administration,
logistics and sales will also continue.
Please find the complete Interim Report as a PDF-file for download here:
http://www.villeroy-boch.com/en/gb/home/the-company/investor-relations/rep
orts.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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