Majorca bucks the trend with 32% growth over 2009

The Majorca Spa group has closed 2009 with a 32% increase in turnover and is looking ahead to three years of growth. This result was achieved through the new commercial strategies and production innovations introduced in 2009, including the acquisition of two important Italian ceramic design brands, Ceramica Monica and Eurotiles, and has enabled the company to position itself in the mid to high segment of the market.

In spite of the negative market situation, in the three-year period 2007-2009 the Group’s strategy of innovation and commercial expansion enabled it to optimise its production cycle by increasing capacity to 2.4 million sq.m/year and investing 6% of turnover in industrial renewal and line automation. Majorca has succeeded in changing production from two to three daily shifts, increasing output by 50% and taking on 6 new employees while at the same time cutting industry costs by 20%.
With the subsequent acquisition of Ceramica Monica and Eurotiles, this overall growth trend has enabled the group to optimise synergies in both the domestic and export markets. It has also succeeded in steadily increasing its average prices to reach a 6% increase at the end of 2009 over the previous year, while gross operating margin was up by 8 points and turnover totalled 20.2 million euro.

The group’s objective for the three-year period 2010-2012 is to position itself amongst the ceramic sector companies with a turnover in excess of 50 million euro. To reach this new target, Majorca Spa is developing strategies to enter the most dynamic emerging markets (Asia and Africa) where ceramic tile consumption is expected to grow strongly.