The Villeroy & Boch Group’s consolidated revenue for the first nine months of 2023, adjusted for currency effects, was €650.6 million, down 8% on last year.
Revenue in the EMEA region declined by 13% due in particular to a weak performance in central Europe, where revenue fell by 13.5%. Overseas, revenue in China increased by 13.1%, thanks to good project business.
EBIT in the first nine months of 2023 was €56.8 million, down 11.7% on the same period in the previous year. The downturn in earnings due to revenue development was only partly offset by cost savings and income from currency hedges.
Revenue generated by the dining and lifestyle division of the business in the first nine months of 2023 was also down 2.7% year-on-year as a result of economic developments. In terms of revenue performance, project business with hotel and restaurant customers saw particularly strong growth of €1.6 million on the back of the company’s pronounced focus on the high-end segment.
Meanwhile, revenue generated by the dining and lifestyle division in retail stores came to €61.8 million, slightly higher than the previous year, while ecommerce saw a downturn in revenue of -€8 million. The dining and lifestyle division recorded an operating result (EBIT) of €12.1 million, down from €12.6 million the previous year.
Looking ahead, Villeroy and Boch said in its report: “Given the further deterioration of conditions in the European construction industry in the third quarter of 2023 and negative currency effects, the Villeroy & Boch AG Management Board expects that the forecast range adjusted at the end of the first half of the year – with a reduction in consolidated sales (at previous year exchange rates) of 3% to 6% and operating EBIT of 5% to 10% – will narrow further to the lower range as a result of the sales and earnings development in the fourth quarter. Based on the revised targets, the return on net operating assets is expected to range between 23% and 25%.”