Panariagroup reports strong first-half growth

Following on from 18% growth in consolidated turnover in 2015 to 342.9 million euros, Panariagroup has maintained its strong performance in the first half of 2016 with consolidated net revenues of 193.8 million euros (+10.8%).

The group also saw a strong performance in terms of margins with 30.4% growth in EBITDA to 21.4 million euros (10.7% of the value of production), 64.5% growth in EBIT, and consolidated net profits up by 65.9%. These results stem from increased output volumes and sales and, according to chairman Emilio Mussini, also owe much to the group’s international outlook and ability to adapt rapidly to market changes.

Sales have grown in all the main geographical areas with the exception of the Italian market, which remains stagnant. European sales saw impressive 24% growth, accounting for 34% of total Group revenues. The best performances in Europe were in Portugal (thanks to the steady growth of the Portuguese Business Unit which has become the country’s leading player), as well as Germany and the Netherlands where new customer segments were acquired. The results in Eastern Europe were also encouraging.

Sales in the US market rose by 9% (in dollars), accounting for 36% of total revenues. The installation of a complete new production line is nearing its conclusion at the factory in Lawrenceburg (USA) and the group is studying the possibility of introducing innovative products (laminated porcelain stoneware) with the aim of securing new market shares.

The remaining markets (Asia, Canada, South America, Oceania and Africa) have seen 5% growth and make up 11% of Panariagroup’s sales, and are believed to offer considerable potential, especially in the large project segment.

Emilio Mussini believes that another driver of Panariagroup’s growth is the consolidation of its multibrand strategy, which uses distinct brands to cover different target markets effectively while benefiting from group synergies and shared investments in technology.

The investment programme at the various facilities continued during the first six months of this year. In addition to the investments made at the US factory, the third laminated porcelain stoneware line and a new polishing line came into operation at the Fiorano Modenese facility in March, and a further polishing line has been installed at the Portuguese facility in Aveiro.

All the Group’s Business Units are expected to post improved results in the second half of 2016 with respect to the previous year thanks to the anticipated effect of the higher production volumes and revenues, savings on energy tariffs and the impact of the investments on production costs. In view of all these factors, in 2016 Panariagroup appears set to generate the highest turnover in its history.