Villeroy & Boch confirms its forecasts for 2026 despite an still complex market environment

The Management Board of Villeroy & Boch considers the Group's economic performance in the first half of the financial year 2026, despite a market environment still marked by geopolitical tensions.

Decline in revenue

In the first half of this year, the Group's revenue stood at 635,8 million euros, down 12,4% year on year (725,8 million euros). Adjusted for currency effects and the disposal, completed on 1October 2025, of the Northern European brands Gustavsberg and Vatette, the decline was 7,4%. In contrast, the order book performed positively, increasing by 2025 compared with the end of 49,5 to 199,9 million euros.

Theoperating EBIT stood at 34,5 million euros, compared with 47,8 million euros in the previous year. The decline was mainly attributable to the divestment carried out in the previous financial year, as well as the effects of the geopolitical conflict in the Persian Gulf. The Group's result amounted to -6,8 million euros (previous year: +13,8 million euros), mainly as a result of extraordinary tax items with no financial impact.

Bathroom & Wellness under pressure

The Bathroom & Wellness division generated revenue of 504,4 million euros (previous year: 594,1 million euros, -15,1%); adjusted for portfolio and currency effects, the decline was 9,4%. Revenue in EMEA fell by 14,5%, mainly due to the divestment and the conflict in the Middle East, while some markets, such as Italy, Bulgaria and Hungary, recorded positive growth. The APAC and Americas regions reported a decline of 21,3% against a weakening construction market. The division's operating EBIT stood at 29,5 million euros (adjusted previous year: 43,0 million euros).

“The current global economic environment is presenting the entire sector with significant challenges, and the Villeroy & Boch Group is not immune to them. Nevertheless, we are convinced that broadening our positioning through the acquisition of Ideal Standard will strengthen our business in the medium and long term, especially in such a complex environment,” explains Georg Lörz, CEO Bathroom & Wellness.

Dining & Lifestyle: strong e-commerce growth

The Dining & Lifestyle division confirmed revenue of 130,0 million euros, broadly in line with the previous year (130,4 million euros); adjusted for currency effects, there was even a slight increase of 0,8%. Particularly noteworthy was the performance ofe-commerce, with revenue growth of 16,1%. Slight declines in EMEA (-1,0%) were partly offset by increases in the APAC region and the Americas. Operating EBIT rose slightly to 5,0 million euros (previous year: 4,8 million euros).

“The results of the Dining & Lifestyle division are particularly positive in view of the challenging market environment. The success of the new products, as well as the strong growth of e-commerce, demonstrate that we are in tune with the needs of our female consumers,” comments Peter Domma, CEO Dining & Lifestyle and Chief Digital Officer.

Outlook for the full financial year 2026

The global market environment remains marked by geopolitical and economic uncertainty; further deterioration in the second half of the year cannot be ruled out. Against this backdrop, Villeroy's Management Board & Boch confirms the forecasts for the full financial year 2026, with expected operating EBIT of 75 million euros.

The still weak market trend is temporarily exacerbated by the structural effect related to the disposal of the Northern European brands Gustavsberg and Vatette, completed on 1October 2025; for this reason, in the third quarter as well, 2026 net revenue and operating EBIT will be significantly lower than in the previous year.

”The economic environment remains extraordinarily volatile. We expect geopolitical tensions to continue to affect our business over the remainder of the year and are addressing this uncertainty with prudent planning. The solid order book and the stable performance of the Dining & Lifestyle division nevertheless demonstrate the structural strength of our business,” states the CFO, Markus Warncke.

This article was translated from the original Italian version with the assistance of artificial intelligence. In case of discrepancies, please refer to the original Italian version.