DGAP-News: Villeroy & Boch AG / Key word(s): Quarter Results Villeroy & Boch AG: Management Board confirms growth and earnings targets for 2013 as a whole
19.04.2013 / 08:00
———————————————————————
Press Release Mettlach, 19 April 2013
Villeroy & Boch: Interim report for the first quarter of 2013
Management Board confirms growth and earnings targets for 2013 as a whole
* Revenue for the first quarter down slightly year-on-year at EUR183.7 million
* EBIT up slightly at EUR7.2 million
* Group result up 10% year-on-year to EUR3.4 million
Revenue down slightly on previous year
In the first quarter of 2013, the Villeroy & Boch Group generated net revenue of EUR183.7 million, down slightly on the prior-year figure of EUR184.5 million. Net revenue in the German market was up 5% year-on-year at EUR54.3 million. Revenue outside Germany amounted to EUR129.4 million (previous year: EUR133 million). The global economy saw inconsistent development in the first quarter of 2013. While there was a slight upturn in Asia, the USA and Germany, economic development in the euro zone markets that are important to Villeroy & Boch continued to deteriorate as a result of the unresolved sovereign debt crisis, which led to the need for a bailout package for Cyprus in the period under review.
Improvement in EBIT and Group result
The Villeroy & Boch Group generated earnings before interest and taxes (EBIT) of EUR7.2 million in the first quarter, up slightly on the previous year (EUR7.1 million). EBIT for the first three months of the current financial year contains a gain on the disposal of the former branch office in Frankfurt/Main in the amount of EUR1.3 million. Including the income from the reversal of a recultivation obligation, total extraordinary income was at a largely similar level to the gain on the disposal of the sanitary ware factory in Saltillo, Mexico, in the previous year. The Group result improved from EUR3.1 million to EUR3.4 million (+ 10 %)
Orders on hand up 6 % since the start of the year
Orders on hand amounted to EUR49 million as of 31 March 2013, an increase of 6 % since the start of the year. The Bathroom and Wellness Division accounted for EUR28.2 million of this figure, with the remaining EUR20.8 million attributable to the Tableware Division.
Development in the divisions
The Bathroom and Wellness Division generated revenue of EUR117.0 million in the first quarter of 2013, down EUR5.1 million or 4 % on the same period of the previous year. This development reflects the continued impact of the euro zone financial crisis on the Group’s markets in Western and Eastern Europe in particular. The prolonged winter weather in Europe also adversely affected construction activity in the first quarter of the year. The most notable downturns in revenue were in Russia (- 43 %), Switzerland (- 18 %) and the Netherlands (- 16 %). Outside Europe, there was negative revenue development in Mexico (- 38 %) and the USA (- 31 %) in particular. In Mexico, this was partially due to the targeted withdrawal from low-margin local project business in the previous year. In the USA, the temporary fall in revenue was due in particular to the sale of the St. Thomas Creation brand. Rising income from the new sales partnership with TOTO USA is expected from the second quarter onwards. Australia (+ 34 %) and China (+ 20 %) enjoyed positive revenue development, while performance in Germany was stable with revenue growth of 1 %. The Tableware Division generated revenue of EUR66.7 million in the period from January to March 2013, up EUR4.4 million or 7 % on the previous year. Germany enjoyed encouraging revenue growth of + 14 %. Outside Germany, the markets of Russia (+ 35 %), Switzerland (+ 21 %), Austria (+ 21 %) and the United Kingdom (+ 14 %) saw particularly strong revenue development. The improved course of business in these countries in particular was further boosted by the fact that, unlike in the previous year, the first quarter of 2013 included Easter. The negative trend resulting from the euro zone financial crisis continued in Italy (- 6 %) and Spain (- 5 %). Australia also saw lower revenue (- 8 %).
Balance sheet structure: Equity ratio falls to 25% due to IFRS amendment
The application of the amended IAS 19 ‘Employee Benefits’ resulted in a significant change to the Villeroy & Boch Group’s balance sheet structure compared with 31 December 2012. Actuarial losses, which were not recognised within the defined corridor until 31 December 2012, are required to be taken directly to equity with retrospective effect from 1 January 2013. As a result, equity decreased by EUR41.2 million in the opening balance sheet as at 1 January 2013. Provisions for pensions increased by EUR58.3 million as a result of the change in accounting treatment, while deferred tax assets increased by EUR17.1 million. The new accounting treatment meant that the equity ratio declined by 7 % to 25 % compared with 31 December 2012. This modified IAS standard is required to be applied by all entities preparing IFRS financial statements.
Investments
The Villeroy & Boch Group made investments of EUR1.8 million in the first three months of the 2013 financial year (previous year: EUR6.3 million). The Bathroom and Wellness Division accounted for EUR1.3 million or 72 % of this figure. The planned investment projects for the current financial year are scheduled in particular for the second quarter onwards.
Outlook for the 2013 financial year
‘In light of our high expectations, we cannot be satisfied with our revenue development. At the same time, earnings are in line with our forecasts – we knew in advance that the first quarter of the year would not be easy,’ commented Frank Göring, CEO of Villeroy & Boch AG. The growth and earnings targets for 2013 as a whole that were communicated in February are unaffected by the results for the first quarter. ‘We still expect consolidated revenue to increase by between 3 and 5 %, while EBIT growth is expected to be significantly higher than the forecast revenue growth, i.e. in excess of 5 %,’ confirmed Göring. These revenue and earnings targets will be achieved through continued intensive investments in the high-growth markets of Russia and Asia, as well as organic growth in the saturated markets of Europe. Villeroy & Boch will also press ahead with the rationalisation of production and workflows and structures in the areas of administration, logistics and sales.
Please find the complete Interim Report as a PDF-file for download here: http://www.villeroy-boch.com/en/gb/home/the-company/investor-relations/rep orts.html
Further inquiry note: Almut Kellermeyer Head of Presse & Public Relations Tel: (+49) 6864 81-1397 Fax: (+49) 6864 81-21397 Mail: presse@villeroy-boch.com
End of Corporate News
———————————————————————
19.04.2013 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement.
———————————————————————
Language: English Company: Villeroy & Boch AG SaaruferstraŸe 1-3 66693 Mettlach Germany Phone: +49 (0)6864 81-0 E-mail: information@villeroy-boch.com Internet: www.villeroy-boch.de ISIN: DE0007657231 WKN: 765723 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service ——————————————————————— 207692 19.04.2013
Quelle: presseportal.de finanzen