After seeing a double-digit decline in its revenue across the first half of 2026, ceramics and sanitaryware brand Villeroy & Boch said it blamed the current “exceptionally volatile economic environment” for the dip.
Across the first half of the year, Villeroy & Boch reported consolidated revenue of €635.8m (roughly £544.5m), which was down by around 12.4% compared to last year’s figure of €725.8m.
When adjusted for exchange rate effects – as well as sale of its Northern European Gustavsberg and Vatette brands last year – the company said this decline amounts to around 7.4%.
However the company said its order book was showing a much more positive trajectory, and had risen by approximately €49.5 when compared with the end of 2025.
According to Villeroy & Boch, its pre-tax operating profits for the first half of 2026 amounted to around €34.5m. This represents a decline of around 27% year-on-year, when the company reported a figure of €47.8m instead. Specifically, the brand said this was “primarily attributable to the divestment carried out in the previous year, as well as the effects of the geopolitical conflict in the Persian Gulf”.
Looking specifically at Villeroy & Boch’s Bathroom & Wellness division, the company said its year-on-year revenue was down by roughly 15%, dropping to €504.4m in 2026 compared with last year’s figure of €594.1m.
While acknowledging that revenue in the Europe, the Middle East, and Africa (EMEA) region fell by around 14.5% in the first half of the year, Villeroy & Boch singled out markets such as Italy, Bulgaria and Hungary as areas that saw particularly encouraging growth. The Americas and Asia-Pacific regions also saw a decline of around 21.3% across the period.
All in all, this totalled a decline of roughly 31.3% for the company’s pre-tax operating profits across its global Bathroom and Wellness division, down from an adjusted €43m last year to €29.5m in 2026.
“The current global economic environment poses significant challenges for the entire industry, and the Villeroy & Boch Group is not being spared either,” explained Georg Lörz, the management board member for Villeroy & Boch’s Bathroom & Wellness arm. “Still, we are confident that the broader market position resulting from the acquisition of Ideal Standard will strengthen our business in the medium and long term, particularly in challenging times.”
Villeroy & Boch acquired the Ideal Standard brand back in 2024, and in the years since, has credited taking on the bathroom supplier with helping the company achieve a record-breaking increase in revenue.
Meanwhile, figures from the company’s Dining & Lifestyle division were relatively flat, with the first half of 2026 seeing €130m in revenue generated, which is virtually on par with last year’s figure of €130.4m. However, Dr Peter Domma, Villeroy & Boch’s Dining & Lifestyle division management board member and chief digital officer, said that the results for this arm of the business were “particularly encouraging given the challenging market environment.”
Looking ahead to the rest of the year, Villeroy & Boch predict that the wider global market “will continue to be affected by geopolitical and economic uncertainty”, and said it couldn’t rule out further deterioration in the second half of the year. As a result, the company forecasts that its net revenue and pre-tax profits will also likely be significantly below the previous year’s figures in the third quarter of 2026.
“The economic environment remains exceptionally volatile,” commented chief financial officer Dr Markus Warncke. “We expect geopolitical tensions to continue to impact our business for the rest of the year, and we are addressing this uncertainty through appropriately cautious planning.
“That said, our solid orders on hand and the stable performance in the Dining & Lifestyle Division highlight the fundamental strength of our business.”
In related news, Villeroy & Boch’s CEO and executive chairwoman, Gabi Schupp, stepped down from her role back in May 2026. Following her departure, the company unveiled a new “streamlined” executive board to lead the company going forwards.