Villeroy & Boch : Mettlach, 20 October 2015, Interim report on the third quarter of 2015:

• Consolidated revenue up 3.5 % year-on-year to € 578.4 million
• Operating EBIT climbs 5.5 % to € 21.1 million
• Growth and earnings targets for 2015 as a whole confirmed

Revenue development: +3.5 % year-on-year

In the first nine months of the 2015 financial year, the Villeroy & Boch Group increased its net revenue by 3.5 % year-on-year to € 578.4 million. Revenue rose by 2.6 % on a constant currency basis, i.e. assuming unchanged exchange rates as against the previous year. Net revenue on the German domestic market increased by 3.2 % to € 166.0 million, while revenue outside Germany rose by 3.6 % year-on-year to € 412.4 million after € 398.0 million in the previous year.

Orders on hand amounted to € 68.6 million at 30 September 2015, up a substantial € 17.2 million on the start of the year. At € 51.6 million, the Bathroom and Wellness Division accounted for the majority of this figure.

Operating EBIT improves by 5.5 % to € 21.1 million

In the period from January to September 2015, operating EBIT increased by € 1.1 million or 5.5 % to € 21.1 million. This was due primarily to efficiency improvements in the production network and the optimisation of revenue quality thanks to an improvement in the product and country mix.

A total of three properties were sold to Värmdö municipality as part of the Gustavsberg (Sweden) real estate project in the period to 30 September 2015, thereby generating non-recurring income of € 1.0 million (previous year: € 3.2 million). The lower level of non-recurring income meant that total EBIT declined year-on-year to € 22.1 million (previous year: € 23.2 million). As previously, the Group assumes that the total income from this property transaction will amount to around € 17 million, of which € 12.8 million have already been realised.

Development in the divisions

The Bathroom and Wellness Division increased its revenue by € 14.0 million or 3.9 % year-on-year to € 370.1 million as of the end of the third quarter of 2015. Revenue amounted to € 373.9 million on a constant currency basis, corresponding to an increase of 5.0 %.
The main exchange rate effects were due to negative changes in the Russian rouble and the Swedish krona.

The positive revenue development enjoyed by ceramic product concepts was driven in particular by the strong demand for DirectFlush rimless toilets and ViClean shower toilets, as well as by the launch of new Mainstream series.

In the Group's domestic market of Germany, revenue increased by 5.2 % in the year to date. Outside Germany, revenue growth was recorded in the United Kingdom (+24.4 %) and the Gulf States (+23.0 %) in particular. Revenue in France (-7.6 %) and Italy (-6.7 %) continued to decline as a result of the difficult economic conditions in the period under review, although these markets stabilised in the third quarter.

The Tableware Division generated revenue of € 208.3 million in the period from January to September 2015, corresponding to year-on-year growth of € 5.6 million or 2.8 %. At € 199.4 million, revenue on a constant currency basis was down slightly on the previous year. Significant exchange rate effects resulted from changes in the US dollar, the pound sterling and the Swiss franc.

While revenue in the Tableware Division in Germany remained essentially unchanged year-on-year, substantial nominal revenue growth was recorded in Japan (+31.6 %), Norway (+26.1 %), Canada (+18.8 %) and Australia (+9.3 %) in particular.

Investment volume in the first nine months of 2015: € 16.3 million

The Villeroy & Boch Group made investments totalling € 16.3 million in the first nine months of 2015 (previous year: € 30.2 million). 73.0 % of this figure related to the Bathroom and Wellness Division, where investments primarily concentrated on modernisation measures and new facilities for the sanitary ware factories in Mexico, Romania, Hungary and Thailand. The Tableware Division invested predominantly in its own retail stores. The Villeroy & Boch's substantial investment volume in the previous year is due in particular to the construction of the assembly and logistics centre in Sweden.

Outlook for 2015 as a whole

'We are continuing to forecast moderate economic growth for 2015 as a whole. We expect the current weak economic development in emerging economies such as China to be offset by the positive performance in the USA and large parts of the euro zone. On this basis, and on the back of our high level of orders on hand, we are continuing to forecast an increase in consolidated revenue of between 3 % and 5 % and an improvement in the operating result of more than 5 %,' commented Frank Göring, CEO of Villeroy & Boch AG. The company is continuing to keep a critical eye on the economic crisis in Russia.

*) Return on net assets as at 31 December 2014

Contact:
Annette Engelke
Head of Press and Public Relations
Tel: +49 (6864) 81-1397
Mobile: +49 (170) 782 44 21
E-mail: engelke.annette(at)villeroy-boch.com