Marazzi Group reports positive first half of 2011

Based on excellent performances in Russia and Italy and the development plan implemented over the last two years, Marazzi Group has closed the first half of 2011 with a net positive result of 11.5 million euro (2.1% up on the same period in 2010). The consolidated revenues of 418 million euro represent a 3% increase over the first half of 2010 (+4.3% at constant exchange rates), while core sales of ceramic tiles rose by 5.3% (+6.7% at constant exchange rates). Operating margins were also very strong. EBITDA rose 15.1% on the previous year to 65 million euro, reaching 15.6% of sales compared to 14% the previous year. EBIT rose sharply to 36.6 million euro, 8.8% of sales (28% up on June 2010).

These good results are largely attributable to the Russian market, where revenues rose by 26.4% in the first half of 2011. Marazzi operates throughout the country with two facilities and a network of retail outlets and has drawn up a plan for further expansion through investments in production and new stores. It has also successfully started up the production of mosaic and small sizes as well as a wall tile manufacturing line. After opening new showrooms in the first 6 months of 2011, the chain of stores in Russia now comprises more than 300 points of sale.

Although the US market has remained fairly stable with respect to 2010 (+4.3% in local currency), Marazzi Group has continued to make investments. In February it purchased 6 new stores to complement the 7 existing outlets. Then in the summer, it started up a new flexible and highly efficient production line in order to expand its range of new products tailored to the tastes and trends of American customers.

Marazzi has also reported very positive results in Italy. Against a backdrop of sector-wide contraction, tile sales have rise by 6.5%. In the rest of Europe, the company has reported varying performances in different countries. Some areas such as Spain and Greece continue to show a sharp fall in demand, while others such as Eastern Europe are showing strong signs of recovery with double-figure growth in sales. Marazzi is making further investments in all its European factories, introducing new technologies for dry digital decoration and in-line rectification of large-format porcelain tiles in order to continue to improve the quality and design of its products.