Balta: Enormous growth in rugs in Q1
Balta has started 2021 with significantly improved adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation): At EUR 21.2 million, it is now 23.9% higher than last year; the margin has risen from 10.7% to 13.9%. The Belgian machine weavers are thus increasingly recovering from the pandemic-related downturn. Balta's consolidated revenue for Q1 2021 amount to 152.6 million EUR (-4.5 % compared to the previous year).
Balta Home, the company's carpet division, played an important role in this positive development. Here, the adjusted EBITDA grew by an impressive +160.7 % to 11.2 million EUR. According to Balta CEO Cyrille Ragoucy, sales increased especially in the US and in the e-commerce segment. Better plant utilisation, continued cost reductions and the benefits of the NEXT earnings improvement programme helped boost profits, he said, adding that comparatively low raw material costs in H2 2020 still had a positive impact on Q1 2021. Since the turn of the year, however, material and transport costs have risen considerably, and Balta has adjusted prices accordingly in all divisions.
Balta's wall-to-wall carpet segment continued to decline: Adjusted EBITDA shrank by -7.5 % in the Residential division and by -21.1 % in the Commercial division.Carpet Home-Newsletter: Click here for free newsletter subscription