June 21st, 2024
In an extraordinarily complicated environment due to the contraction in construction and the shift in consumer priorities in the post-pandemic period, the group recorded a profit of 27 million euros.
Roca Group closes the 2023 financial year with a turnover of 2,057 million euros. This year was marked by a slowdown in new construction due to high interest rates and changes in the consumer behavior, which in a post-pandemic context prioritized the consumption of other types of goods, services and leisure over home refurbishment. This complicated situation was further aggravated by inflationary pressure and the consequent reduction in commercial margins. In this context, EBITDA amounted to 318 million euros, equivalent to 15% of revenues, and net profit was 27 million euros, heavily impacted by the hyperinflation adjustment in the Argentinian subsidiary.
The company increased its investment effort to 153 million euros, compared to the 135 million euros investment in 2022. These resources were mainly allocated to expanding and improving the production capacity of factories, strengthening the Competence Centres, digitalisation and development of new products, and moving forward the milestones set out in the sustainability roadmap, as well as in updating facilities and showrooms (Roca Galleries and Laufen Spaces, among others).
In 2023, Roca Group also committed to strengthening its position in the premium bathroom furniture segment with the acquisition of Madeli in the United States. It complemented its portfolio in bathtubs and shower trays with the purchase of Clarke (also in the USA) and, in the premium steel washbasin market, incorporated into the group the German company Alape. These operations have enabled the company to remain at the forefront of technology in each category, consolidating its Competence Centres model initiated last year.
Roca Group goes on with its commitment to sustainability from an integral point of view, encompassing all its operations. By the end of 2023, it achieved a 50% reduction in its Scope 1 and 2 CO2 emissions compared to 2018, as well as halved the waste generated in the same period. The intensity of energy use in its operations (the energy required to produce a given output) has been reduced by 57% compared to the same year. The development of the Water Neutrality and Circularity plans contributed, also, to fulfill the group's sustainability roadmap.
This year, the company also stood out for the commissioning of the world's first electric tunnel kiln for the production of sanitary ceramics at the Gmunden plant in Austria, an unprecedented milestone that leads the paradigm shift in sanitary and broader ceramic sectors. The implementation of this technology turns the Gmunden plant into the first in the world dedicated to producing sanitary ceramics with net-zero emissions.
All these objectives positioned the company in the top 3% of global companies on sustainability performance according to the Ecovadis rating, having received its Gold Medal in recognition.
Roca Group Ventures platform continues promoting collaborations and investments with start-ups that drive innovation and the evolution of the sector, with €25 million of committed investment for emerging companies that contribute to innovation and propel the sector and the industry.
Precisely this week, the fund announced its investment in two new projects. First, in the Spanish company KMINA: a manufacturer of products to aid reduced mobility, which also develops and distributes products for the prevention of domestic accidents and to facilitate the use of the bathroom space. Its products are designed for people with different needs, such as the elderly or dependants. Second, Roca Group Ventures is investing in Boon, Indian water tech start-up that develops, manufactures, and distributes AI-enabled smart and sustainable water purifiers for offices, hotels, and resorts. These purifiers come with connected features to enhance water quality and do predictive analysis for service, eliminating the need for plastic water bottles and reducing plastic waste and carbon emissions.
