18.07.2014
Villeroy & Boch AG DE0007657231
DGAP-News: Villeroy & Boch AG: Villeroy & Boch remains on growth path and confirms targets for 2014
DGAP-News: Villeroy & Boch AG / Key word(s): Half Year Results/Interim
Report
Villeroy & Boch AG: Villeroy & Boch remains on growth path and
confirms targets for 2014
18.07.2014 / 08:00
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Press Release
Mettlach, 18 July 2014
Interim report on the second quarter of 2014
Villeroy & Boch remains on growth path and confirms targets for 2014
* Consolidated revenue up 5.4 % on a constant currency basis;
Revenue (nominal) increases by 3.4 % year-on-year to Euro 372.1 million.
* Operating EBIT up 13.4 % year-on-year to Euro 13.5 million.
* Further non-recurring income of Euro 1.1 million generated from real
estate project in Sweden.
* Growth and earnings targets for 2014 as a whole confirmed.
Revenue development: +5.4 % year-on-year (on a constant currency basis)
In the first half of the 2014 financial year, the Villeroy & Boch Group
increased its net revenue by 5.4 % to Euro 379.3 million on a constant
currency basis, i.e. assuming unchanged exchange rates compared with the
previous year. Nominal consolidated revenue amounted to Euro 372.1 million,
up 3.4 % on the same period of the previous year. The relatively pronounced
exchange rate effects were due in particular to the changes in the Russian
rouble, the Swedish krona, the Norwegian krone, the US dollar and the
Australian dollar.
Net revenue in the Group's domestic market of Germany increased by 6.0 %
year-on-year to Euro 109.5 million. Nominal revenue outside Germany
amounted to Euro 262.6 million (+2.4 %).
Orders on hand amounted to Euro 64.5 million as of 30 June 2014, an
increase of around Euro 19.2 million compared with the start of the year.
The Bathroom and Wellness Division accounted for around 60 % of this
figure.
Operating result (EBIT) improves by 13.4 %
In the first six months of the current financial year, operating earnings
before interest and taxes (EBIT) increased by Euro 1.6 million or 13.4 % to
Euro 13.5 million. The conclusion of additional purchase agreements in
connection with our real estate project in Gustavsberg, Sweden, resulted in
non-recurring income of Euro 1.1 million as of 30 June 2014. This meant
that the unadjusted operating result totalled Euro 14.6 million (+22.7 %
year-on-year).
Gustavsberg real estate project: additional non-recurring income to be
recognised in Q3
Another tranche of the plant properties in Gustavsberg, Sweden, was sold on
10 July 2014. The corresponding revenue will be recognised in the third
quarter of 2014. As previously, the total income from this real estate
transaction is expected to amount to Euro 17 million, of which Euro 7
million was already recognised in 2013.
Development in the divisions
The Bathroom and Wellness Division generated revenue of Euro 247.5 million
on a constant currency basis in the first half of 2014, up 5.8 % on the
same period of the previous year. Nominal revenue increased by 3.6 %
year-on-year to Euro 242.5 million.
Growth in Germany (+4.1 %) again contributed to the positive revenue
development. This upturn was driven by the extremely good performance in
the area of bathroom furniture. With regard to sanitary ware, our WCs with
an open rim and "DirectFlush" technology continued to enjoy encouraging
development.
Villeroy & Boch also recorded substantially higher nominal revenue in its
important growth markets of China (+53.3 %) and Russia (+27.3 %), as well
as in Eastern Europe (+13.0 %).
There was a downturn in revenue in Mexico (-28.7 %), Italy (-18.1 %),
Denmark (-15.2 %) and France (-11.2 %) in particular, largely as a result
of economic factors.
In the period from January to June 2014, the Tableware Division generated
revenue of Euro 131.8 million on a constant currency basis, up 4.8 % or
Euro 6.0 million on the previous year. Nominal revenue improved by Euro 3.8
million or 3.0 % to Euro 129.6 million.
The division's home market of Germany remained the main driver for this
revenue growth on a half-yearly basis (+9.4 %). Outside Germany, the upward
trend recorded in the first quarter continued in a number of countries,
with significantly higher (nominal) revenue generated in Poland (+32.0 %),
Austria (+12.7 %) and Benelux (+8.5 %). The division also enjoyed
substantial revenue growth in the Middle East (+33.1 %), especially in
Saudi Arabia.
Lower revenue was primarily recorded in the United Kingdom (-9.2 %),
particularly as a result of the closure of retail stores, and in Italy
(-8.9 %) due to economic factors.
The new products presented at the relevant trade fairs have seen extremely
positive development to date. This is already reflected in revenue to an
extent, but particularly in the incoming orders that have been placed.
Above and beyond this, the orders for products from this year's Christmas
collection give us reason to expect improved revenue and earnings
performance in the financial year as a whole.
Investment volume in the first half of 2014: Euro 15.5 million
Villeroy & Boch invested a total of Euro 15.5 million in the first half of
2014 (previous year: Euro 4.2 million). The Bathroom and Wellness Division
accounted for 84.5 % of this figure. Investments in this division primarily
focused on the construction of the new logistics and assembly centre in
Sweden, as well as the sanitary ware plants in Mettlach (Germany) and
Saraburi (Thailand) and a Bathroom and Wellness World of Discovery in
Lübeck-Dänischburg (Germany).
Investments in the Tableware Division mainly related to the further
expansion of the retail network; for example, new or renovated retail
outlets were opened in Lübeck-Dänischburg, Luxembourg, Marseille (France)
and Wijnegem (Belgium).
Outlook for the 2014 financial year
"The course of business in the first six months is consistent with our
revenue forecast for 2014 as a whole. Adjusted for the relatively
pronounced exchange rate effects from the conversion of the respective
national currencies into our Group currency, the euro, we are pleased to
note that we are actually performing slightly better than expected,"
commented Frank Göring, CEO of Villeroy & Boch AG.
The Company expects to see moderate economic growth in the second half of
the year. Göring: "At the same time, the financial and commodities markets
remain a source of potential uncertainty. Most notably, the development of
the Ukraine conflict represents a risk that is difficult to assess, and a
further aggravation of the situation could also have a negative impact on
the economy in our growth market of Russia in particular."
The outlook for the 2014 financial year remains unchanged after the second
quarter. "We are continuing to forecast growth in consolidated revenue of
between 3 % and 5 %. We expect to see above-average growth in operating
earnings, i.e. an improvement of more than 5 % compared with the previous
year," 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:
Annette Engelke
Head of Press & Public Relations
Tel: (+49) 6864 81-1397
Fax: (+49) 6864 81-71331
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
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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