PanariaGroup reports stable third quarter of 2012

PanariaGroup's results for the third quarter of 2012 confirm the main trends of the previous quarters in terms of both sales and economic results.

In spite of negative trends in a number of key markets, the group succeeded in limiting its fall in turnover by pursuing growth strategies in areas such as Asia and America.

Profit margins were hit by the rise in energy prices and by the smaller output volumes with respect to the previous year, largely caused by the earthquake that damaged the factory in Finale Emilia.

Net sales revenues totalled 216.5 million euro, 1.7% down from the 220.3 million euro reported to 30 September 2011.

The Group saw strongly divergent performances in its various key markets. Whereas North America and the Asian countries marked up positive trends, the traditional European markets (which account for 36% of total turnover) suffered a 13% contraction. Portugal is the country that registered the biggest downturn, although difficulties are also being experienced in France, Belgium and Holland. By contrast, the Group has maintained its turnover levels in Eastern Europe and has performed strongly in Spain.

Italian sales, which account for 26% of total turnover, fell by approximately 15% (the decrease in the sector's total sales in the domestic market was around 17%).

On the back of more than 25% growth, the US has now become the Group's largest market. This is largely due to the results achieved by Florida Tile, which has further improved on the positive performances reported in the previous quarters. The North American market accounts for 29% of total turnover.

The overseas markets of Asia, Oceania and Africa (9% of total turnover) have maintained more than 20% growth rates, with the best performances reported in the Middle East, Singapore, Japan and South Africa.

EBIT totalled 14.4 million euro (6.6% of the value of production), 19.6 million euro down from 30 September 2011, while EBITDA amounted to 0.1 million euro (compared to 4.9 million euro to 30 September 2011). The result was a consolidated net profit for the period of 0.4 million euro, almost in line with the results to 30 September 2011.

Following the sizeable investments made in the Group's factories, the financial position registered a negative balance of 92.5 million euro, an improvement of around 3 million euro compared to 30 June 2012. Net assets totalled 153.6 million euro at 30 September 2012.

Over the coming months the Group will be pursuing initiatives aimed at maximising opportunities in the areas of highest development potential and optimising resources so as to maintain market share in countries with weaker prospects.