Villeroy & Boch reports growth in Bathroom and Wellness segment

Villeroy & Boch (Mettlach, Germany), one of the most prestigious international groups in the ceramic sanitaryware and tableware sectors, closed 2016 with consolidated revenue of 820.1 million euros (up 2% in nominal terms on 2015 or 3.3% on a constant currency basis) and a 9.4% improvement in EBIT to 47.6 million euros. These positive results were driven by the Bathroom and Wellness division, which generated almost two-thirds of the group’s revenues (524.4 million euros, up 5.5% in nominal terms or 7.3% on a constant currency basis), offsetting the contraction in the Tableware segment (down 3.6% to 295.7 million euros).

The most satisfactory results were achieved in the domestic market, where sales grew by 6% to 241.4 million euros. Exports accounted for 70.6% of total revenues and remained slightly above 2015 levels at 578.7 million euros (+0.5%). The Group recorded strong growth in several other European markets, including the Czech Republic (+11.7%), Benelux (+5.5%), Austria (+4.3%) and Sweden (+2.4%). Revenue also returned to moderate growth in France (+0.6%) following several years of decline, but fell by 5.2% in the United Kingdom due to the weakness of the sterling. Revenue also declined in the Americas and in Russia (-7.8% in both cases), while in the Asia region the group recorded an excellent performance in China (+35.2%).

Investments amounted to 26.2 million euros in the past financial year. Of this figure, around three quarters related to the Bathroom and Wellness Division (modernisation and new facilities) and one quarter to the Tableware Division (machinery and expansion of brand stores).

Last year’s good results continued in the first quarter of 2017, with consolidated revenue up 1.4% (201.2 million euros) and EBIT climbing 5% compared to the first quarter the previous year. The performances of the various segments and markets also reflected those of 2016, with the Bathroom and Wellness Division continuing to grow (+7.1%) and the Tableware Division seeing a further decline (-9.3%), while the domestic market (+2.3%) was more dynamic than the export market (+1%).

Orders on hand amounted to 94 million euros as of 31 March 2017 (20 million euros more than at 31 March 2016), in the light of which CEO Frank Göring confirmed the Group’s 2017 goals of increasing its consolidated revenue by between 3% and 5% and EBIT by between 5% and 10%.