Villeroy & Boch raises the forecast for the financial year 2020

In view of the recovery of the business in the summer months, the Management Board of Villeroy & Boch AG has today significantly raised its forecast for the financial year 2020. It now expects an operating result (EBIT) of EUR 30 - 35 million. The previously communicated target was to compensate for the losses of the 1st half of the financial year caused by the COVID-19 pandemic in the 2nd half and to achieve a positive operating result. Thanks to stringent cost management since the beginning of the COVID-19 pandemic and a significantly improved sales performance in the 3rd quarter, which was even higher than in the previous year, this target was achieved earlier than planned.

The Management Board expects the positive sales trend to continue in the traditionally strong 4th quarter and to be able to close the fiscal year with total sales revenues of at most 6% below the previous year.

The new forecast is based on the assumption that there will be no further significant measures by governments to contain the pandemic and associated negative effects on the economy.

Taking into account the positive business development in the 3rd quarter of 2020 and the continued high net liquidity, the Management Board and the Supervisory Board have decided to propose to the Annual General Meeting on 30 October 2020 a total dividend of EUR 0.55 per preferred share and EUR 0.50 per common share for fiscal year 2019, less the already paid advance payment on the distributable profits of EUR 0.20 per preferred share and EUR 0.15 per ordinary share, i.e. a further dividend payment of EUR 0.35 per share.

Note: The interim report for the third quarter of 2020 will be published as scheduled on 20 October 2020 and will contain detailed information on business performance in both divisions.