GranitiFiandre, 7.7% growth in first nine months

Nov 15, 2005

15/11/05 - At yesterday’s board meeting the management of the large-format porcelain tile manufacturer GranitiFiandre (Castellarano, province of Reggio Emilia) approved the company’s quarterly report to 30 September. The company posted a 10.3% increase in total revenues (45.6 million euro), while profits from brand products rose by 16%.

Turnover in the first 9 months of the year amounted to 130.2 million euro, 7.7% up on the same period in 2004.
Increase in turnover from brand products in the Italian market (18.6%) was particularly substantial as a result of investments to promote the GranitiFiandre brand name with leading architects and distributors. The loyalty of this customer segment is being bolstered by the growing network of Geologica Shops, of which there are now 20 (all the major Italian cities).

The GranitiFiandre Group has maintained high levels of profitability, with EBITDA of 19.6 million euro over the first nine months (-10.1%). This should be considered a positive figure taking account of the American subsidiary StonePeak which is at the start-up phase. EBITDA would in fact have been 22.4 million euro, up 2.4%.
EBIT on a progressive basis amounted to 10.8 million euro (compared to 13.9 million euro in the corresponding period in 2004) but would have been 14.4 million euro (+2.4%) not considering the effect of the American plant.

Following recent openings in Berlin, Arezzo, Kiev, Salzburg, Budapest, Perugia, Misano, Puerto Rico, Paris and Barcelona, the Geologica Shop network now comprises 64 brand stores, including 44 outside Italy. A megastore will soon be opened in Shanghai and a point of sale in Potenza, both as franchising agreements.

“On the basis of the orders portfolio, 16% up on last year, the expectations are equally positive for the fourth quarter and for the end-of-year results,” commented Graziano Verdi, Chairman and Managing Director of the GranitiFiandre Group.
“Following the third quarter growth due to profit margin consolidation,” he continued, “we are certain that the German subsidiary Porcelaingres will also report a rise in turnover in the last quarter of 2005.”
“As for the new American factory, Verdi concluded, “given the orders portfolio and the new contracts we expect to report substantial growth in activities over the next quarters.”monete3.jpgPorcelaingres, turnover of 14.5 million euroIn the nine month period the German subsidiary Porcelaingres reported a turnover of approximately 14.5 million euro, more than double that of the corresponding period in 2004.

Profit margin likewise continued its growth with EBITDA of more than 1 million euro over the nine-month period, an increase of about 2.5 million euro.
Significantly, EBIT was at break-even point in the third quarter of 2005, an improvement of more than 0.8 million euro over the corresponding quarter in 2004.