Interim report on the first quarter of 2017 - Positive start to 2017: Villeroy & Boch records revenue and earnings growth

• Consolidated revenue up 1.4 % year-on-year to € 201.2 million
• EBIT climbs 5.0 % to € 10.5 million
• Growth and earnings targets for 2017 as a whole confirmed in light of positive order situation

Revenue development: up 1.4 % on previous year

In the first quarter of the 2017 financial year, the Villeroy & Boch Group increased its revenue by 1.4 % year-on-year to € 201.2 million.

In the Group's home market of Germany, revenue rose by € 1.4 million or 2.3 % to € 62.0 million. At € 139.2 million, revenue outside Germany was up 1.0 % on the previous year. Orders on hand amounted to € 94.0 million as at 31 March 2017, a significant increase of € 20.1 million compared with the start of the year. Of this figure, € 79.0 million related to the Bathroom and Wellness Division and € 15.0 million to the Tableware Division.

EBIT improves by 5.0 % to € 10.5 million

EBIT increased by 5.0 % to € 10.5 million in the first three months of the financial year. This was due in particular to strong revenue performance in the Bathroom and Wellness Division.

Development by division

At € 138.4 million, revenue in the Bathroom and Wellness Division in the first quarter of 2017 was up 7.1 % on the same period of the previous year.

In Germany, revenue increased by 8.6 % to € 43.2 million after the first three months of the current financial year. Substantial revenue growth was also recorded in Norway (+22.4%), Finland (+15.8%), the Netherlands (+8.7%) and the United Kingdom (+7.3%). Outstanding revenue growth of 60.7 % in China resulted from strong demand for ViClean shower toilets, among other things. Revenue in France declined by 2.8 %.

The Tableware Division generated revenue of € 62.8 million in the first quarter of 2017, down 9.3 % on the previous year. Revenue development was affected by the strategy of adopting a pronounced focus on higher-margin trade channels, which was initiated in 2016 with the aim of improving revenue quality in the long term.

Revenue of € 18.8 million was generated in Germany (-9.9 %). Revenue also declined in the USA (-10.8 %) and France (-8.8%). By contrast, revenue in the United Kingdom increased by 4.6 % on a constant currency basis in the United Kingdom, although the depreciation of the pound sterling meant revenue was down 6.0 % year-on-year in nominal terms. China (+12.6 %) and Poland (+11.6 %) enjoyed notable revenue growth.

Investment volume in the first quarter of 2017: € 3.0 million

The Villeroy & Boch Group made investments totalling € 3.0 million in the first quarter of 2017 (previous year: € 2.4 million). Around three-quarters of the investment volume related to the Bathroom and Wellness Division, which invested in new facilities for the production site in Mettlach and the optimisation of the logistics centre in Losheim in particular. Investment activity in the Tableware Division primarily related to new production tools.

Outlook for 2017 as a whole

For 2017 as a whole, in light of the positive order situation, the company expects to increase its consolidated revenue by between 3 % and 5 %, accompanied by EBIT growth of 5 % to10 %.

Villeroy & Boch:

Villeroy & Boch is one of the world's leading premium brands for ceramic products. The family business, which was founded in 1748 and is headquartered in Mettlach/Germany, stands for innovation, tradition and exceptional style. As a renowned lifestyle brand, Villeroy & Boch offers products from the sectors Bathroom and Wellness and Tableware, and is active in 125 countries.