Ceramics brand Villeroy & Boch has exceeded €1bn in revenue for the first-ever time following its Ideal Standard acquisition, despite the deal taking a toll on this year’s profits.
In the company’s latest financial report, which covers January to September 2024, Villeroy & Boch generated revenue of €1.008b (roughly £840m). This is an increase of €357.2m over last year’s revenue of €650.6m (roughly £542.4m), with an almost 55% increase in revenue year-on-year.
The bathroom and wellness brand said it had managed to more than double its sales in Western and Southern Europe. It also achieved a 74.8% increase in sales for Eastern Europe, and saw a stable 1% growth figure in the Asia-Pacific and Americas regions.
In the first three months of the year, Villeroy & Boch’s pre-tax earnings also increased by more than 11%, to €64.5m (roughly £53.7m).
However, the company’s net profits were not as fortunate. This year’s group result is reported at €5.4m (or £4.5m), which is a steep 85% drop from last year’s result of €37.7m (roughly £31.4m).
In the report, Villeroy & Boch acknowledges that the sharp downturn in profits were “related to one-off effects related to acquisitions and financing costs”.
In February of this year, the company completed its acquisition of well-known bathroom brand Ideal Standard, which went on to be integrated as a separate part of Villeroy & Boch Group. Following the acquisition’s approval from antitrust authorities, Villeroy & Boch said it believed the deal now made it one of Europe’s largest manufacturers of bathroom products.
In this latest financial report, the ceramics manufacturer refers to the deal as “the most significant event in the history of Villeroy & Boch”.
The company has defended its underwhelming profit figure, saying that the reported total is likely skewed by this year’s acquisition. The report goes on to say that as a result, “the figures are only comparable with the previous year to a limited extent”.
Looking ahead to the company’s future, the company’s management board commented that it, “continues to expect a significant increase in revenue, the operating result, and investments as a result of acquisitions”.
