Villeroy & Boch reports first quarter decline in revenue due to challenging market conditions

The Villeroy & Boch Group experienced a 13.7% decline in revenue during the first quarter of 2026 compared to the same period in 2025 with sales amounting to €318.7m, down from €369.1m the previous year. 

Revenue for the Bathroom & Wellness division fell by 16.1% year on year to €248m in the first quarter of 2026. Adjusted for revenue from the divested Gustavsberg entities, the revenue decline was 9.9%. On a regional basis, revenue fell by 15.6% in EMEA (Europe, Middle East, Africa) and by 23.2% in APAC/Americas, driven primarily by divestments, economic weakness, the conflict in the Middle East, and the slowdown in the Chinese construction sector. Operating EBIT (earnings before interest and taxes) for Bathroom & Wellness amounted to €12.9m. 

In a statement, the Group described the result as ‘satisfactory’ in a ‘continued challenging market environment, shaped primarily by the current geopolitical and global economic situation’.

Revenue performance was affected by the disposal of the northern European business of the Gustavsberg and Vatette brands as well as adverse currency effects. On an adjusted basis, the revenue decline amounts to 8.3%. 

Despite the decline in revenue, Villeroy & Boch says it recorded a ‘pleasing’ increase in its order book as of 31st March 2026, up by €47.3m to €197.7m. The Group recorded operating EBIT of €17.2m.  

Dr Markus Warncke, chief financial officer of Villeroy & Boch AG, said: “The first quarter of 2026 was marked by a complex interplay of divestments and geopolitical tensions that affected our results. Despite these challenges, we were able to achieve positive developments in certain areas, such as the order book across both divisions and the e-commerce business in Dining & Lifestyle. This underscores the resilience of our business model and our strategic direction.”

Amidst the continuing high level of geopolitical and economic uncertainty, the Executive Board of Villeroy & Boch AG confirmed its full year 2026 forecast, with consolidated revenue expected to be in the mid- to high-single-digit percentage range below the prior year. However, the Executive Board now expects operating EBIT, which had been forecast between €75m and €85m, to be at the lower end of this range.