Villeroy & Boch posts double-digit growth
In the first nine months of 2021, the German group’s consolidated revenue reached €684.5 million, up 24.7% on 2020. Forecasts for the end-of-year 2021 results are for €920 million
The German group Villeroy & Boch recorded strong growth figures in the first nine months of 2021 including consolidated revenue of €684.5 million (+24.7% on 2020), higher even than pre-Covid levels. Operating EBIT rose sharply to €61.8 million compared to the €10.3 million of 2020, a year in which results had been impacted by the pandemic-related slump in demand and plant shutdowns.
All the Mettlach-based multinational’s production segments contributed to the upswing.
The Bathroom and Wellness division generated revenue of €477.8 million (+24.5%) and an EBIT of €50.2 million compared to the previous year’s €19.3 million. The biggest increase was recorded in the ceramic sanitaryware segment (+€56.2 million compared to the first 9 months of 2020), driven by the strong performance of the home renovation market. The wellness (+€15.2 million) and fittings (+€12.6 million) divisions also saw good growth.
The Dining & Lifestyle division posted 25.6% revenue growth to €204.7 million thanks to a strong performance in almost all sales channels. E-commerce revenue rose by €22 million compared to 2020 and revenue from retail outlet partners by €18.8 million, while revenue at the group’s own retail stores fell slightly (down €0.9 million). The division ended the period with an operating EBIT of €11.6 million, up €20.6 million against 2020, which was also affected by downtime costs at the plants in Merzig and Torgau.
Between January and September 2021, the group led by CEO Frank Goring invested €15.4 million, including €10.7 million for the Bathroom and Wellness division. New equipment was installed at the sanitaryware plant in Hungary and the bathroom furniture plant in Austria, as well as on the ViClean shower toilet series production line. The remaining €4.7 million was allocated to the Dining & Lifestyle division for maintenance and modernisation of the logistics centre in Merzig, the purchase of new isostatic presses and pressing tools, as well as the energy optimisation of a kiln.
In view of the strong results, the Management Board of Villeroy & Boch has again revised up its expectations for the 2021 financial year and now forecasts consolidated revenue of more than €920 million and an EBIT in excess of €85 million. Based on the revised targets, the return on net operating assets is expected to range between 25% and 30%.
With production facilities in 8 European countries and Thailand, Villeroy & Boch sells its products in 125 countries. The group has a history stretching back more than 270 years and has been listed on the stock market since 1990.