Panariagroup posts 6.5% turnover growth in 2014 to reach 290.7 million euros

In spite of continued instability in the international economy, Panariagroup, the fourth largest Italian ceramic group, closed 2014 with strong growth over the previous year.

In particular, it reported a turnover of 290.7 million euros (6.5% up on the 273 million euros of 2013) and a marked improvement in profitability: gross operating margin rose from 14 to 21 million euros and net operating margin returned to positive territory at 1.9 million euros (in 2013 it was 6.8 million euros in the red).

Panariagroup's Chairman, Emilio Mussini, commented: "The 2014 results met our targets, including growth in sales and margins of all Business Units, greater use of production capacity and a further reduction in Net Working Capital and Net Financial Debt", which dropped from 90.9 to 80.2 million euros (-10.7 million euros).

"The advantage gained from having consolidated a significant share (45%) of our turnover in very dynamic non-European markets will enable us to maintain good growth prospects in the medium term," continued Mussini. This in turn will allow for greater risk diversification and greater competitiveness in all contestable markets.

PANARIAGROUP: MAIN CONSOLIDATED ECONOMIC INDICATORS
(values in thousands of euros)

The Group has reported different turnover trends in the various geographical areas.

In Panariagroup's largest market, the United States, revenues rose to 99 million euros (13.3% up on 2013), accounting for 33% of the Group's total turnover. This result benefited from the favourable economic climate and the competitive advantage of having a direct market presence in terms of both production (with Florida Tiles) and sales (Lea North America).

Sales also rose by more than 6% in the European market, largely due to a stronger than expected performance in the Portuguese market, where Panariagroup is one of the leading producers (with Margres, Love Ceramic Tiles and Gres Panaria). The Group also reported strong sales in Belgium, Germany, the UK and Spain, while the crisis in Russia failed to have a negative impact as it is a marginal market for the Group. European markets accounted for 33% of total turnover, on a par with the figure for 2013.

While demand continued to decline in the Italian market, which accounts for 22% of Panariagroup's total sales, the resultant fall in sales was in line with that of the entire sector, allowing the Group to maintain its market share.

In the other markets (Canada, South America, Africa, Asia and Oceania), Panariagroup reported 20% growth in all key areas, largely due to the results achieved by the Portuguese Business Unit in Africa and by the Italian Business Unit in Asia and Oceania. These markets now account for 12% of total turnover.

The forecasts for 2015 are positive for both the European and US Business Units, for which a major investment programme is planned this year.