Cosentino Reaches Billion-Dollar Level
CANTORIA, Spain – Net annual revenues for the surfacing producer Cosentino Group are anticipated to clear more than $1 billion in 2017, according to a report from the company.
The company reported a 10% increase in sales and 19% increase in profitability. The Spanish company also made investments totaling nearly $246 million, most notably the construction and opening of a second Dekton® manufacturing plant in Almeria, Spain, and two new showroom openings, resulting in the creation of 340 direct jobs.
Click chart to enlargeThe revenues represented an increase of more than 8% from 2016, a figure negatively impacted by the decrease of sales income against the Euro. In comparable terms (using a regularized exchange rate), this figure was 10 percent, highlighting strong growth in certain markets, including Europe (+20%) and Spain/Portugal (+12%).
In terms of operating results, the company’s earnings before interest tax depreciation and amortization (EBITDA) last fiscal year totaled $157 million, an increase of 10%. Changes in the exchange rate had a strong negative impact on this figure; with regularized figures, the relative growth on 2016 was 19%. This increase in profitability was caused by the absorption of fixed costs, which led to an increase in combined revenue (+10%).
The figure with the most distinct improvement over the last fiscal year was net profit, totaling $70 million, or a 33% increase from 2016. This was due to very strong financial results, as well as the financial coverage provided by the exchange-rate risk-management policy, which mitigated the negative effect previously mentioned in the EBITDA case.
The company investment of approximately $246 million is 52% of total planned investments of $468 million; 70% of this has been in productive growth investments.
In addition, Cosentino focused on automating existing factories at Cosentino’s corporate headquarters in Cantoria to increase production speed and flexibility. These changes also helped to improve Cosentino’s sustainability practices.
To increase involvement in international markets, Cosentino opened seven new Cosentino Centers in 2017, scattered across countries such as the United States, Canada, Israel, Singapore, South Africa, Poland and the United Arab Emirates. Along with the Centers, Cosentino opened showrooms located at the hearts of two of the world’s most important cities – Madrid and Dubai.
The company closed 2017 with 140 business units in 32 countries across five continents. For the next three years, the company is maintaining an ambitious growth plan, including opening 30 new full-service warehouses and showroom business units. This follows up on the company’s new and recent corporate commitment to “inspire people through innovative spaces.”
The preceding investments, in production as well as business and logistics, have been financed through a combination of the company’s own assets and outside financing (which grew 9%, or approximately $24 million, last year). Company debt has undergone positive changes, and the current debt ratio (net debt divided by EBITDA) is 1.5.
As in previous fiscal years, industrial and commercial growth have been accompanied by strong job growth; the workforce at the end of last year the end of 2017 totaled more than 4,000 people worldwide.
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