2016 was a successful year for
Villeroy & Boch, but not in the way you might think. In recently reported results, the company’s consolidated revenue increased by 3.3%, EBIT increased by 9.4%, EBT up by 9.8%, and return on net operating assets rose from 13.6% to 15.7%. The company met every projected number for 2016, but the success was not due to their Tableware division, but rather the Bathroom & Wellness division.
The nominal revenue of the Tableware division fell 3.6% compared to 2015’s figures. Villeroy & Boch attribute this revenue loss to the decrease in retail store visits across Europe, and plan to optimize their online shops, which experienced 7.9% growth across all markets in 2016. Other factors also played into the decrease in revenue, such as consumer behavior as well as the company’s shift of focus from secondary branding to licensing.
Villeroy & Boch look to new opportunities in the tableware industry to increase numbers in 2017. Their key opportunity in tableware will involve tracking and identifying new trends in society regarding how consumers enjoy food and drink at an early stage so they in turn can offer a corresponding product range.
Villeroy & Boch is looking to expand their target market to include cruise ships and care homes, in addition to the
hotel and restaurant industries.
To read the full financial report from Vileroy & Boch, go here:
https://www.villeroyboch-group.com/en/investor-relations/publications/annual-reports.html
-G. Stegall
