Balta: Revenue up, operating profit down
The figures the Balta Group announced for 2019 yielded a mixed picture. Europe’s largest manufacturer of textile floor coverings recorded a moderate 3.9% increase in consolidated revenue (2.6% organic) to EUR 671.2 million, but the company’s operating profit declined 5.7% (-7.4% organic) to EUR 74.4 million. One positive consideration is that the EBITDA decline in the previous year, 2018, was twice as large.
The Belgian producer reported growth in its Rugs (+7.4%) and Commercial (+9.7%) business segments for the year, but its Interiors business saw another 5.8% decline – still significantly less than the 11.9% fall in revenue recorded in 2018.
The Balta Group has accumulated EUR 313.7 million in debt, which again increased slightly in 2019 due to expenditures connected with an ongoing investment and cost-cutting program. Balta is primarily investing in its e-commerce custom carpets business in the US with the aim of being capable, through partnerships, of delivering to consumers and others within two to three days.Carpet Home-Newsletter: Click here for free newsletter subscription