Panariagroup reports sharp improvement in first 9 months of 2014

Panariagroup has closed the first 9 months of 2014 with a marked improvement in its results and a return to profitability, largely due to a strong performance in the third quarter of the year (revenues up 8%). The results include consolidated net revenues of 218.1 million euros (4.9% up on the first nine months of 2013); gross operating margin up from 10.4 to 14.7 million euros and a net operating margin back in positive territory at 0.7 million euros, compared to the negative result of 3.5 million euros to 30 September 2013. The asset and financial situation is also positive, with a 9.7 million euro decrease in net debt since the beginning of the year.

According to Panariagroup's chairman Emilio Mussini (pictured), the results have confirmed expectations. "Given our Group's positive sales in the major European markets in recent months and our increasingly strong presence in the most dynamic non-European markets, we are confident of maintaining good growth forecasts in the medium term," he said.

The Group reported approximately 13% growth in sales in the United States, its largest market with 33% of total revenues. Two new Florida Tile stores were opened here in 2014 and a third is due to open by the end of the year. The prospects for 2015 are also good thanks to the competitive advantage of a direct manufacturing presence and sales operations in the country.

Sales also rose by 5% in European markets (which likewise account for 33% of total revenues) following a steady improvement in the second and third quarters. The best result was in Portugal, where Gres Panaria Portugal has production facilities.

However, turnover in Italy has continued to fall (-5%) and now accounts for 22% of total revenues.

The other markets - Asia, the Americas, Oceania and Africa - saw overall growth of about 20% and accounted for 12% of total revenues. This was largely a result of efforts to consolidate the Group's commercial presence in areas considered to have greatest growth potential. The Group's strategy of pursuing internationalisation in non-European markets (to diversify risk and increase competitiveness) is reflected in the share of turnover generated in these areas, up from 26% in 2009 to the current figure of 45%.