Earnings forecast for the full year 2023 confirmed
In the first quarter of 2023, Villeroy & Boch generated consolidated sales (including licence revenues) of Euro 229.3 million, down Euro 19.2 million or 7.7 percent on the very good first quarter of the previous year due to the economic situation. In the main region EMEA (Europe, Middle East, Africa), sales declined by 10.7 percent or 22.1 million euros. This was due in particular to the weak development in Germany, where a drop in sales of 14.3 percent or 11.1 million euros was recorded. On the other hand, the good development in Southern Europe should be highlighted, with an increase in sales of 23.6 percent or 2.3 million euros. Overseas, an increase in sales of 6.8 percent was achieved. Sales in the Asia-Pacific region increased by 16.6 percent or 5.1 million euros. Order intake in the first quarter of 2023 resulted in an overall increase in the order backlog of €5.7 million to €143.0 million compared with December 31, 2022. Of this, €113.7 million (Dec. 31, 2022: €116.9 million) was attributable to the Bathroom & Wellness Division and €29.3 million (Dec. 31, 2022: €20.4 million) to the Dining & Lifestyle Division.
In the first quarter of 2023, the Group generated earnings before interest and taxes (EBIT) of €19.6 million, only slightly down on the previous year (€20.4 million). Fortunately, the weak sales performance was largely offset thanks to lower purchasing costs and savings in structural costs.
The Bathroom & Wellness Division generated sales of € 150.8 million in the first quarter, down 12.4 percent on the extremely strong prior-year quarter (€ 172.1 million). As a result of the economic slowdown in Europe, the decline in sales is mainly reflected in the Sanitary Ceramics Business Segment (€ -8.8 million) and in the Wellness Business Segment (€ -7.1 million), where sales were down primarily due to the existing bans on the operation of outdoor spas. The operating profit (EBIT) of this business sector of €17.4 million was thus almost on a par with the previous year (€17.7 million). The Dining & Lifestyle division generated sales of 77.7 million euros in the first quarter, up three percent on the previous year. In the first three months, sales growth was achieved in almost all distribution channels. Particularly noteworthy is the project business with hotel and restaurant customers, with an increase in sales of EUR 2.7 million, in which the focus was strongly on the upscale segment. The Dining & Lifestyle division closed with operating earnings (EBIT) of €5.6 million, up €1.9 million on the previous year (€3.7 million), mainly as a result of the pleasing sales performance and declining purchasing costs.
Based on the business development in the first three months of the current financial year, the Management Board of Villeroy & Boch AG expects consolidated sales for the full year 2023 to be at the level of the previous year. The forecasts for operating profit, operating return on net assets and capital expenditures remain unchanged. However, it cannot be ruled out that further developments in the Ukraine war may have an even more significant impact on the economy in the construction industry and the future consumer behavior of private households, and thus also a negative impact on the development of the Villeroy & Boch Group in the second half of 2023, according to a statement from Mettlach.