GranitiFiandre, 8.3% growth in 2005

Feb 14, 2006

14/02/06 - GranitiFiandre, a ceramic group based in Castellarano (province of Reggio Emilia, Italy) that manufactures large-format porcelain tiles emulating natural marble and granite, reported an 8.3% increase in turnover in 2005.
Consolidated revenues amounted to 176.3 million euro compared to 162.8 million euro at the end of 2004.
Gross operating margin (EBITDA) fell to 25.2 million euro (27 million euro in 2004), while net operating margin (EBIT) was 12.9 million euro (15.9 million euro in 2004). Note that operating margins were affected by the start-up of the American subsidiary StonePeak in June 2005. Pre-tax profits came to 15.8 million euro (6.7% up on a year-on-year basis).

During 2005 the Castellarano-based Group reported a significant increase in turnover from sales of brand products, +12% to 126.8 million euro with an even stronger growth trend (more than 15%) in the second half of the year.
In particular, brand turnover rose by 20.8% in the domestic market. In European markets, where the average increase was 7.2%, the company achieved a strong performance in Germany (+23%), Holland (+9%), Belgium (+11%), Czech Republic (+15%), Romania (+87%) and Hungary (+23%). This was partly due to the contribution of the German subsidiary Porcelaingres, which posted a 86.7% increase in sales over 2004.
GranitiFiandre also achieved good results in other world markets with total growth of 9.5% over 2004.

Following openings last year in Berlin, Arezzo, Kiev, Salzburg, Budapest, Perugia, Misano (Rimini), Potenza, Puerto Rico, Paris, Barcelona and Sacile (Pordenone), there are now 65 GeologicaShops, including 44 outside Italy. Shops are due to open soon in Shanghai, Strasburg and Miami. The results for the last quarter of 2005 confirmed the growth trend for the previous months of the year. Consolidated revenues came to more than 46 million euro, 9.8% up on the 42 million euro of the corresponding period in 2004.

Gross operating result (EBITDA) came to more than 5.6 million euro (+7.1%), while pre-tax profits were more than 2.9 million euro, a 117% increase over the 1.4 million euro of the last quarter of 2004.
Net profits amounted to 1.1 million euro (+94.7%), bringing the Group’s net result in fiscal 2005 to 6.1 million euro (compared to 7.3 million euro in 2004).