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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.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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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 +3.2% 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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