Panariagroup posted a 76% growth in consolidated net profit in the first half of 2017

After closing 2016 with 9.9% growth in revenues to 377 million euros, Panariagroup, one the biggest the Italian ceramic groups, posted further 6.7% growth in net consolidated revenues in the first half of the current year to reach 206.8 million euros. It also reported a sharp improvement in profit margins with respect to the already positive figures for the first half of 2016: 30.4% growth in gross operating margin to 27.9 million euros; a 47.3% upturn in net operating margin to 16.2 million euros; and an impressive 76.8% surge in consolidated net profit to 9.6 million euros.

According to the management of the ceramic multinational (which boasts 3 facilities in Italy, 2 in Portugal and one in the USA, as well as a joint venture in India), one of the main drivers of the sales growth was the favourable macroeconomic climate leading to an overall increase in tile consumption. But another equally important factor was the group’s sales capacity, which enabled its 9 brands (Panaria, Lea, Fiordo, Cotto D’Este, Blustyle, Florida Tile, Margres, Love Tiles and Bellissimo) to compete successfully in the world’s main markets.

While Panariagroup’s sales grew across all regions, the best performance was in the European market, which now makes up 36% of Panariagroup’s total revenues. Panariagroup also posted 4% turnover growth in the USA, thanks to the group’s strong presence in the local market through the US Business Unit and the direct production of Florida Tile. The group has also posted strong results in the Italian market, which saw 5% sales growth in the first half of 2017.

“Panariagroup’s consolidated presence in all the main international markets remains a key factor behind the Group’s competitiveness,” commented Chairman Emilio Mussini. “The search for new business development opportunities remains one of our main goals”.

“The positive effects of the major reorganisation carried out by the Italian Business Unit in the last two years are becoming increasingly evident,” said Mussini, adding that “the Portuguese Business Unit is also seeing outstanding growth rates that bode well for further growth in sales.”

With this in mind, Gres Panaria Portugal is at the centre of Panariagroup’s plans for the future.  As the two Portuguese factories are now running at maximum capacity, the group has decided to increase the production capacity of the Aveiro facility by installing a new complete line for porcelain tile production. Work should be completed by the end of the year.

• Read the complete article published in Ceramic World Review 123/2017