Balta books strong profits ahead of split
February 28, 2022
Balta has booked strong profits growth of 28% for 2021 ahead of the splitting out of its rugs and residential carpets to Victoria plc in April this year.
Reporting its full year results to shareholders today, Balta posted profits of €87 million on sales 12.9 percent higher at €634.3 million.
Cyrille Ragoucy, CEO and Chairman of the Board of Balta said,
“2021 was a year of recovery from the COVID-19 disruptions experienced the year before. We emerged stronger from the crisis with increased sales.
The success was based partly on a fast reaction on costs. "Raw materials, energy and transportation cost increased significantly. In order to mitigate the impact, we took swift action and increased prices across all divisions, most markets and customer groups. We expect more cost inflation impacts in 2022, which will require further actions," says Mr Ragoucy.
Victoria plc is to acquire more than half Balta's business, the €300m rugs and UK carpets operation, in a deal worth €138m which is expected to be finalised in April.
Balta reported on this "discontinuing" part of the business separately and showed profits up 46.7% to €43.9m on sales up 17.8% to €357m following an especially strong performace in rug sales.
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