PanariaGroup strengthens its assets

The Panaria Group's results for 3Q 2013 were influenced by strategic measures to improve financial management and reduce indebtedness. The measures consisted on the one hand of slowing down production at the European sites, and on the other, of increasing the sales of low-turnover products.  This led to a reduction in profits but also a reduction of € 15.4 million in net working capital, and a decrease of € 8.5 million in net financial indebtedness since 30 June this year.

There were also other positive signs, from the trend in revenues (€ 207.9 million) which fell by 2.1% compared to 3Q 2012, with a change of 4% compared to the cumulative figure for the first nine months of 2013 (-4.8% for the first half of the year).

In detail, the USA, which with 32% of total turnover is the Group's primary market, achieved sales of € 66.2 million, up by 9.4% compared to the same period in 2012.

The European market (34% of total sales) was still displaying the difficulties experienced in the first half, with a decline of more than 10%.

The Italian market, although still below the 2012 level (-6.1%), showed signs of improvement in the third quarter, with only a slight fall (-1.4%) compared to the same period in 2012.

Asia, South America, Oceania and Africa (10% of total turnover) displayed an upwards trend. The decline of 20% in the first quarter was followed by two trimesters of +1% and +5% respectively - an overall reduction of 5%.

The EBITDA figure was € 10.4 million compared to € 14.4 million on 30 September 2012. The reduction is mainly attributable to the 7.4% reduction in output, compared to 2012, with a penalty estimated at € 2.5 million due to the higher impact of overheads and the decline in the contributions from the Italian and Portuguese business units, due to the fall in sales. The EBIT figure was thus negative, at -€ 3.5 million (on 30 September 2012 it stood at +€0.1 million).

In 2014, the Group expects to reap the benefits of its efforts to streamline and reorganise its production, logistics and commercial operations, completed this year in Portugal. Savings are expected to exceed € 2 million. Attention will be concentrated on R&D for distinctive, high-end products, with a special focus on laminated stoneware, while the offer of mid-range products for the European markets will be expanded.