Villeroy & Boch, the German manufacturer of ceramics, has announced a decline in first-half profit and revenue. The company attributes this downturn to a slump in the construction industry and higher interest rates.
Financial Figures
During the first half of the year, net income for Villeroy & Boch dropped to €25.7 million ($28.8 million), compared to €27.9 million in the same period last year. Revenue also decreased by 11% to reach €437.8 million. Additionally, earnings before interest and taxes fell by 6.3% to €38.7 million. The company mentioned that these declines were partially offset by cost savings and income from currency hedges.
Impact on the Business
The bathroom and wellness division of Villeroy & Boch was particularly affected by the construction industry slump. This resulted in a decrease in trade inventories and a decline in consumer investment.
Outlook for 2023
Looking ahead, Villeroy & Boch expects a further decrease in consolidated revenue for 2023. They project a decline between 3% and 6%. Additionally, operating income is predicted to fall within a range of 5% and 10%.