Villeroy & Boch have released an Interim report on the first half-year of 2021 that reveals the company’s excellent business performance has continued in the second quarter.
Following an increase in revenue of +22.4 per cent in the first quarter of 2021, the Villeroy & Boch Group’s revenue rose by +43.0 per cent in the second quarter, though the same quarter of the previous year had been severely impacted by the COVID-19 pandemic. Overall, consolidated revenue (including licence income) climbed to € 449.6 million in the first half of 2021, a year-on-year increase of € 108.9 million or 32.0 per cent.
Incoming orders increased in the first half of 2021, rising by € 65.8 million as against 31 December 2020 to € 166.6 million. € 134.4 million (31 December 2020: € 85.1 million) of this relates to the Bathroom and Wellness Division, while € 32.2 million (31 December 2020: € 15.7 million) relates to the Dining & Lifestyle Division.
EBIT climbed to € 39.0 million (previous year: € -10.0 million) in both divisions in the first half of 2021, mainly thanks to the increase in revenue and the structural measures implemented. However, the previous year’s earnings had been squeezed by the slump in demand as a result of the COVID-19 crisis and the plant shutdowns and restrictions that followed.
The Dining & Lifestyle Division generated revenue of € 125.1 million in the first half of 2021, an increase of 33.2 per cent on the previous year (€ +93.9 million). Revenue was significantly lower in the previous year due to the officially ordered worldwide closure of Villeroy & Boch sales outlets and the global slump in demand as a result of the COVID‑19 crisis. Revenue growth was generated in almost all sales channels in the first half of 2021. Above all, this is reflected by the revenue with our retail outlet partners (€ +16.7 million) and in e-commerce (€ +15.6 million). Meanwhile, there were revenue declines of € ‑1.4 million at Villeroy & Boch retail stores, which were forced to close again on account of the second lockdown in the first and second quarters of 2021. The Dining & Lifestyle Division ended the period with operating EBIT of € 2.7 million, up € 21.3 million as against the previous year, which was also affected by downtime costs at the plants in Merzig and Torgau.
In light of continuing excellent business performance in the first half of the year, the Management Board of Villeroy & Boch AG has significantly raised its revenue and earnings forecasts for the 2021 financial year. As was already announced, it is now forecasting that consolidated revenue will rise to around € 885 million (+10.5 per cent) and that the operating Group result will grow from around € 50 million in the previous year to more than € 75 million. The earnings forecast has been raised primarily on account of the extraordinarily positive revenue performance in the first half of the year and sustainable, structural cost savings.
“The excellent business performance has continued in the second quarter as well. We are experiencing consistently high incoming orders. People are prioritising their homes, which is driving demand for our products considerably,” said Frank Göring, CEO of the Villeroy & Boch Group.