In a period marked by challenging economic conditions, Villeroy & Boch has demonstrated resilience and adaptability, achieving notable success in navigating the turbulent market landscape. The company's recent performance, detailed in their annual results for the 2023 financial year, showcases their ability to thrive amidst adversity.
Key highlights from the 2023 financial year
Despite facing headwinds, Villeroy & Boch managed to maintain a robust EBIT margin of 9.9%, a slight improvement from the previous year's 9.7%. This accomplishment is particularly noteworthy given the decline in consolidated revenue, which decreased by 7.5% year-on-year on a constant currency basis. The group's consolidated revenue, adjusted for currency effects, stood at €901.9 million.
The decrease in revenue was primarily attributed to challenging economic conditions, with negative currency effects further impacting performance. Notably, the EMEA region (Europe, Middle East, Africa) experienced a decline in revenue by 11.3%, with Germany witnessing a downturn of 13.0%. However, the APAC (Asia/Pacific) region saw a slight increase in revenue by 2.9%, driven by strong project business.
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Divisional performance
In the Bathroom & Wellness Division, revenue declined by 10.0% on a constant currency basis, largely influenced by economic factors. Conversely, the Dining & Lifestyle Division managed to maintain stable revenue, with only a slight decrease of 2.4%. The success of the latter division was particularly evident in project business with hotel and restaurant clients, as well as through the group's own retail and e-commerce channels.
Investments and dividends
Villeroy & Boch remained committed to strategic investments, allocating €41.0 million towards property, plant, and equipment, as well as intangible assets. Additionally, plans to distribute dividends of €1.05 per preference share and €1.00 per ordinary share were proposed at the General Meeting of Shareholders.
Outlook for 2024
Looking ahead, Villeroy & Boch anticipates continued economic challenges in 2024. However, the completion of the acquisition of Ideal Standard Group's operating companies in the first quarter of 2024 is expected to drive significant growth in revenue, EBIT, and investments for the company.
More information:
Villeroy & Boch
www.villeroyboch-group.com