Original-Research: Villeroy & Boch (von Quirin Privatbank Kapitalmarktgeschäft): Buy

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: VILLEROY20250804 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/