Marazzi reports 750 million euro turnover in 2003

May 25, 2004

25/05/04 - The Marazzi Group is in excellent health and the management is determined to pursue further growth.
This was the image that emerged from yesterday’s press conference with the group’s Chairman Filippo Marazzi, Vice Chairman Michele Preda and Managing Director Giuseppe Pifferi (pictured).

In 2003, the Group reported a consolidated turnover of 750 million euro, a gross operating margin of 94 million euro (1.3% up on 2002), profits prior to tax and depreciation of 33 million euro (+40.3%), and net profits of 17.4 million euro (+87%).

In the USA, where Marazzi operates through two companies, American Marazzi and Monarch, the Group has seen a sharp growth in sales (+20%) and an increase in market share to 5.5%. Work is in progress at the Monarch facility to double capacity, which will reach 7 million sq.m of porcelain tile by the end of the year.
The Group has also maintained its market leadership in Italy and France with a 12% share in both countries.

At the press conference Marazzi also unveiled its 2004-2006 industrial plan, which sets targets for the three-year period of a turnover of 910 million euro and gross operating margin of more than 150 million euro. To achieve these results, the Group will pursue further growth in emerging markets.

In Russia, a new factory at Malino will be starting up by the end of 2004 and when fully operational (June 2005) will produce 8 million sq.m of tiles. But the Group also has its sights set on China, where it already has a sales branch - Marazzi China - in the Foshan cluster. As Chairman Marazzi observed, this venture is likely to lead to further initiatives, including production activities.

The Group also announced plans for flotation on the Milan stock exchange (Piazza Affari) in 2005, although the management has not yet given a precise date. A study is under way to explore the possibility of seeking investment by a trust prior to the stock market launch.
About 30% of the capital will be floated: after developing the company into the world’s largest enterprise in the ceramic tile industry, the Marazzi family intends to maintain control of the company.