Granitifiandre weathers the crisis

Sep 22, 2003

22/09/03 - In spite of the difficult economic situation and the unfavourable euro-dollar exchange rate, Granitifiandre maintained high levels of profitability in the first half of 2003.

Consolidated turnover was 72.7 million euro, 3.8% down on the 75.6 million euro of the first half of 2002 but in line with last year's results at constant interest rates. Gross operating result (Ebitda) was likewise consistent with 2002 results at constant interest rates. Ebitda reached 17.4 million euro, 10.1% down on the 19.4 million euro of the first half of 2002 and equivalent to 24% of turnover. Operating margin (Ebit) was 13.5 million euro (13.2% down on the first half of 2002), equivalent to 18.7% of turnover.

During the half-year period the company (based in Castellarano, province of Reggio Emilia, Italy) also pressed on with its plan of investment in the productive and commercial sectors.

A new production facility has recently been completed at Brandenburg (Germany) and will be officially opened on 26 September in the presence of all the local authorities. It will initially manufacture 26 different products, all of which are new additions to the company's current range. And with the 4 new openings in July, the number of Geologica brand stores worldwide has now reached 41. Those opened during the first half of 2003 include London, Zurich, Brussels, Vienna and Dusseldorf. In September the company signed a major agreement with the Villeroy & Boch Group (read article: Partnership between Villeroy & Boch and Granitifiandre )

"This agreement with the oldest and most prestigious ceramic manufacturer in the world," commented Romano Minozzi, Granitifiandre's largest shareholder, "follows on from a series of important partnerships established in the last few years with the world's foremost distributors."

Granitifiandre Chairman Graziano Verdi commented: "In spite of the persistent weakness of the dollar, turnover was up by 3% in July 2003 over the same month in 2002 and orders portfolio is up by more than 10%. These figures, together with the recent agreement with Villeroy & Boch, allow us to predict a positive end-of-year result together with high levels of profitability." GRANITIFIANDRE.gif