METTLACH (dpa-AFX) - The weakening economy, particularly in the construction industry in Europe, has caused problems for ceramics manufacturer Villeroy & Boch in 2023. In addition, customers were reluctant to buy due to inflation plus uncertainty due to conflicts and crises not only in Europe, as CEO Gabi Schupp said on Thursday in Mettlach. All of this led to a significant drop in turnover and earnings.

At 901.9 million euros, revenue was 9.3 percent below the previous year's figure in nominal terms. Adjusted for currency effects, the drop was 7.5 percent. Negative currency effects were mainly due to the Chinese yuan and the Swedish krona.

Earnings before interest and taxes (EBIT) fell by 8.1 percent year-on-year to 89.0 million euros. At 61.0 million, consolidated net profit was 14.7 percent below the previous year's figure. The family-owned company had lowered its forecast for the year last year due to the poor economic outlook.

Nevertheless, the Group was satisfied: against the background of the difficult market environment, Villeroy & Boch had "mastered the past financial year very well", said Chief Financial Officer Markus Warncke. The number of employees worldwide at the end of the year was 6.4 percent lower than a year earlier at a good 6,000.

The acquisition of the operating companies of the Belgian fittings and sanitary products manufacturer Ideal Standard Group is to be completed this quarter. "We are waiting for the official okay from the authorities," said Schupp. Due to the takeover, Villeroy & Boch expects "a significant increase in sales" as well as EBIT and investments in the current year. Schupp was unable to provide specific figures, as the deal has not yet been finalized.

The purchase of Ideal Standard will give Villeroy & Boch a "greatly expanded international presence and thus a boost to growth". It is the largest acquisition in the company's history. As a result, Villeroy & Boch will "catch up with the largest bathroom product manufacturers in Europe and thus increase the competitiveness of our new company", said Schupp./rtt/DP/jha