Panariagroup reports turnover growth

Panariagroup has closed the first quarter of 2011 with more than 5% turnover growth and a consequent 12% increase in operating margin, an extremely positive result considering the continued uncertainty of the general economic climate.

Net sales revenues rose from the 68.8 million euro reported to 31 March 2010 to 72.4 million euro as of 31 March 2011 (+3.7 million euro). In spite of the persistent difficulties in Europe, the Group has achieved encouraging results in Germany, France and Austria as well as 3.5% growth in the Italian market following the launch of new porcelain laminate products. The Group has reported excellent results in the United States (+11.8%), where the positive trend of 2010 has been maintained due to the significant contribution of the American subsidiary Florida Tile. Overseas markets (Asia, Oceania and Africa) have generated a 1 million euro increase in turnover compared to the first quarter of 2010 (+20%).

Operating margins have grown, with EBITDA (8.5% of the value of production) up by 0.7 million euro to 6.4 million euro and EBIT totalling 1.6 million euro (0.9 million euro up from 31 March 2010).

But in spite of the strong performance, the net result showed a loss due to the sharp fall in the US dollar, which pushed costs up by 1.6 million euro compared to the previous year. Against a foreign exchange gain of 1.1 million euro in the first quarter of 2010, the Group reported an exchange loss of 0.5 million euro in the same period in 2011.

For the near future, the Group plans to focus on product innovation while expanding its turnover in emerging economies in which it currently has a limited presence but which offer good growth prospects.