Marazzi Group reports increase in revenues and profitability

Reaping the benefits of the development plan implemented in Italy over the last two years (more than 100 million euro of completed investments) and the excellent market performance in Russia and the United States, Marazzi Group closed 2010 with a total turnover of 818.3 million euro, an increase of 2.2% compared to 2009, and a 5.2% increase in sales of ceramic tiles.
In Russia, where the Group has two production facilities and around 200 direct points of sale, revenues rose by 34.7%, while in the United States, where Marazzi has been operating as a manufacturer since the 1980s, sales rose by 13.6% and the Group also increased its market share. In the USA the Group recently purchased 6 points of sale which join the 7 outlets already present, broadening its range of offerings and enhancing its capacity to provide service in the American market. An investment is also nearing completion for a new production line that will continue to improve the offerings of new products for the local market.

The Group's European sales have seen a recovery in profitability in spite of the continued fall in consumption that has affected the entire construction sector.
The Group’s operating income was also significant: EBITDA (14.4% of net sales) totalled 118.1 million euro, 35.4% up on the previous year, while EBIT (7.6% of sales) amounted to 62 million euro. Net profits totalled 13.5 million euro.

Operating cash flow reached 105.1 million euro, allowing the level of debt to be reduced from 298.7 to 226.9 million euro at 31/12/2010 in spite of the investments made by the Group (68.4 million euro for refurbishment of facilities, especially in Italy).