Bathroom products giant Roca Group has reported an increase in turnover despite a challenging market.
The Spanish bathroom specialist increased its group turnover for the 2022 financial year by 1.9% to €2.09 billion – up 1.9% from €2.05bn in 2021, which was up 21.9% on 2020.
The company said that this was achieved against a backdrop of decreased levels of demand due to rising energy costs and inflation worldwide and the negative impact of its disinvestment in Russia.
Roca pointed to significant sales increases in Brazil, India, China and Spain.
Roca attributed its ongoing profitability to continuous improvement in production efficiency, the implementation of flexible business operations that adapt to local needs and steps to reduce and control production costs. However, despite that, net profits fell substantially from €179 million in 2021 to €42m in 2022. Pre-tax profits (EBITDA) also fell from €401m in 2021 to €356m.
Commenting on the results, Roca Group chief executive Albert Magrans said: “In a year as complicated as this one, our professionals have made their involvement and effort count, prolonging the company’s growth”. He also emphasised, “Net assets have risen to 1.7 billion euros, which reflects the financial strength of the group, which bases its growth on self- financing through the reinvestment of profits.”
Roca reported that during 2023 it has continued to consolidate its acquisition policy and acquired Florida-based furniture and mirrors company Madeli.
Investment was up by 8.9% over 2021 at €135m, which was mainly used to expand and improve production capacity in Brazil and India, to build a new factory for resin shower trays and composite bathtubs in Poland, the expansion of its bathroom furniture business in Spain and Portugal and on sustainability projects such as decarbonisation and circularisation of operations.
In pursuit of its goal to be carbon neutral by 2045 and since it began is decarbonisation programme in 2018, Roca has reduced Scope 1 and 2 emissions by 39%, reduced its energy use intensity by 47% and last year installed more than 10,000 solar panels in multiple locations. It also reduced water consumption by 47%.