Panariagroup expands and restructures

Feb 21, 2007

21/02/07 - Panariagroup has reported strong 2006 growth, closing the year with a 45.4% increase in revenues to 351.5 million euro.
This growth is due to the consolidation of Novagres and Florida Tile while the group's organic growth amounted to 8.4 million euro (+4%).
Gross operating margin stood at 49.9 million euro (14.2% up on 2005) and net profits totalled 18.1 million euro (0.3% up on 2005).

The Group enjoyed very positive results in all three of its leading markets. Italy now accounts for 30% of total sales and saw 3.4% growth to 31 December. The United States, which has a 26% share of total turnover, saw an increase in sales from 24.2 million euro in 2005 to 90.7 million euro in 2006.
Europe maintains a 40% share of turnover with good growth percentages over all markets and all group brands. Portugal remained the Group's leading European market with an increase in gross revenues from 17.1 to 36.9 million euro due to the growth of Margres and the acquisition of Novagres.
The merger between Maronagres (Margres) and Novagres was completed, resulting in the creation of a new company called Gres Panaria Portugal which will have the task of optimising the operating synergy between the two Portuguese brands that was first established in 2006.

As part of its reorganisation, Panariagroup has completed its restructure programme for its American subsidiaries. The new organisation includes a holding company, Panariagroup USA, which will control 100% of Florida Tile and Lea North America.
The reorganisation of Florida Tile is also continuing in the United States. Besides the shutdown of the Shannon factory and the start-up of the new porcelain tile line at the Lawrenceburg facility scheduled for June 2007, new top management appointments have been made.
Luca Setti has been placed in charge of finance and management auditing. Massimo Barbari will be head of sales, marketing and distribution, while Bernie Schwartz will stay on as production manager. They will report directly to Panariagroup managing director Giuliano Pini and Florida Tile president Emilio Mussini.
Panariagroup managers Fabio Marasi and Luca Bazzani will continue to support the American company and its managers during this important transition phase.
Current CEO Buck Burwell, CFO John Corcoran and sales manager Bill Powers will leave the company over the next few months.