Villeroy & Boch Reports Decline in Profit and Revenue

by Warren Seah

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%.

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