Economics by Tile International
Panariagroup posts double-figure growth
Panariagroup has reported double-digit growth in the third quarter of 2016 with consolidated net revenues of 286.2 million euros (+10.3% compared to 30 September 2015). Margins also performed strongly, with 22.3% growth in EBITDA to 29.6 million euros, a 55.1% rise in EBIT to 14.4 million euros and a 60.4% increase in consolidated net profits to 7.1 million euros.
This improvement in key financial indicators maintains the positive first-half trend, and according to chairman Emilio Mussini was the result of strategies aimed at improving production efficiency, increasing output volumes and promoting internationalisation. Turnover generated in the Group’s foreign markets made up 82% of the total, with non-European markets accounting for a 49% share.
In European markets, which make up 33% of total revenues, sales grew by 23% compared to September 2015. The two Italian and Portuguese Business Units reported double-digit growth in all main markets, particularly German-speaking countries, France, the UK and Portugal, while Eastern Europe also made a positive contribution. Gres Panaria Portugal further increased its shares, confirming its position as the leading player in the domestic market.
The US market likewise continued to see positive sales growth (+7% in dollars) thanks to the contribution of all distribution channels and the vitality of the construction sector. The US remains the group’s main market, accounting for 37% of total revenues.
Italian sales rose slightly (+2%) to 18% of the total.
All the other markets (Asia, Canada, South America, Africa and Oceania) saw combined growth of 9%, including an excellent third-quarter performance (+17%). The most substantial improvements were in Asia, especially in the large project segment, and in Oceania.
Projections for the fourth quarter of 2016 are in line with the trend from the first nine months of the year, so the Group is expecting to close out the year with a record turnover and major margin growth with respect to 2015.