Original-Research: Villeroy & Boch (von Quirin Privatbank Kapitalmarktgeschä...

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Original-Research: Villeroy & Boch - from Quirin Privatbank

Kapitalmarktgeschäft

04.08.2025 / 12:03 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

Group.

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result of this research does not constitute investment advice or an

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Classification of Quirin Privatbank Kapitalmarktgeschäft to Villeroy & Boch

Company Name: Villeroy & Boch

ISIN: DE0007657231

Reason for the research: Update

Recommendation: Buy

from: 04.08.2025

Target price: 34.50

Last rating change:

Analyst: Ralf Marinoni

H1-25 development: no major surprise

In the H1-25 period, Villeroy & Boch's sales grew by 12.1% to EUR 725.8m as

a result of acquisitions. At EUR 47.8m, the operating EBIT was up .2% on

the previous year. However, due to reduced non-operating effects, the

reported EBIT significantly improved to EUR 38.5m, more than doubling the

EUR 14.4m reported in H1-24. After accounting for income taxes of EUR 9.6m

(compared to EUR 1.7m in the first half of 2024), the company achieved a net

income of EUR 13.8m, substantially higher than the EUR 3.8m earned in the

first half of 2024.

Sale of two brands:

Villeroy & Boch announced on July 11, 2025 that it had sold the Gustavsberg

and Vatette brands. In 2024, net sales of the Gustavsberg and Vatette brands

amounted to EUR 93m. The transaction is expected to be completed during the

third quarter of 2025. The parties have agreed not to disclose the purchase

price.

In our opinion, the margin of the two subsidiaries was below group level;

the divestment is therefore a sensible measure to achieve the medium-term

EBIT margin target of around 10%.

According to our estimates, the sale should lead to a slight decline in

group revenues in FY 2026.

FY 2025 guidance:

Due to the agreement reached on July 11, 2025 on the sale of the Northern

European business of the Gustavsberg and Vatette brands to the Finnish

sanitary fittings manufacturer Oras Group and in light of the current

environment and the associated uncertainties in the markets, the Management

Board of Villeroy & Boch AG is adjusting its forecast for FY 2025 and

expects consolidated revenue to increase by a low to mid-single-digit

percentage in the current financial year and operating EBIT to remain at the

previous year's level. The previous forecast was an increase in consolidated

revenue in the high single-digit percentage range and a moderate increase in

operating EBIT.

However, this adjustment is marginal and hardly surprising, which is why we

confirm our Buy recommendation and the price target of EUR 34.50.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=b4dbf0c8548a1335f4555d4806028e38

For additional information visit our website:

https://research.quirinprivatbank.de/

Contact for questions:

Quirin Privatbank AG

Institutionelles Research

Schillerstraße 20

60313 Frankfurt am Main

research@quirinprivatbank.de

https://research.quirinprivatbank.de/

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2179004 04.08.2025 CET/CEST

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