Ricchetti Group reports 10.9% increase in profits in 2007

Ricchetti Group, an industrial holding company which manufactures and markets ceramic floor and wall tiles, reported growth in 2007 over the previous year.

Consolidated net profits amounted to 10.9 million euro, 6.2 million euro more than in 2006. This increase was partly a result of deferred taxation for the parent company. On the strength of this result, the payout of a dividend of approximately 1.6 million euro (0.03 euro per share) was proposed.

EBITDA showed good margins, up from 7.0% in 2006 to 9.2% in 2007 (2007 total 26.632 million euro compared to the 19.660 million euro of 2006).
Net operating margin (EBIT) was also positive at 14.338 million euro, 5% of the value of production (compared to 5.421 million euro in 2006).
The process of rationalising production facilities that began last year has led to a reduction in labour costs (80.7 million euro compared to 86.5 million euro in 2006). The number of employees at the end of the year was 1,996 (compared to 2,083 in 2006).

Sales suffered a slight fall and ended the year at 271 million euro compared to 282 million euro in 2006. The factors behind this include higher costs of energy, raw materials and transport together with the record fall in the dollar.

According to the group's chairman and managing director Oscar Zannoni, 2008 is expected to show a similar trend to last year. However, the Group has prepared for future challenges by establishing an extensive distribution network in Northern Europe and Portugal and by earmarking substantial sums for technology investments in Italy and abroad.