Villeroy & Boch (VIB3) Q2 2024 earnings summary

Executive summary

• Revenue rose 47.9% year-over-year to €647.3 million, driven by the acquisition of Ideal Standard.

• Operating EBIT increased 20.6% to €46.3 million, but group net income fell to €3.8 million due to one-off acquisition-related effects.

• Ideal Standard contributed €217.6 million in revenue from March to June 2024.

• The acquisition positions Villeroy & Boch among Europe's top bathroom product manufacturers.

Financial highlights

• Operating EBITDA rose 32.7% year-over-year to €77.1 million.

• EBIT was €14.4 million, down from €38.7 million, due to €31.9 million in non-recurring acquisition costs.

• Group net income dropped to €3.8 million from €25.8 million year-over-year.

• Return on net operating assets decreased to 20.6% from 24.8% at year-end 2023.

• Net liquidity fell to €-359.3 million, reflecting the acquisition and dividend payout.

Outlook and guidance

• Management expects significant increases in revenue, operating EBIT, and investments for 2024, confirming previous forecasts.

• Market environment remains uncertain, especially regarding the construction sector and geopolitical risks.