Floorcoverings manufacturer Belysse, formerly known as Balta, has reported an increase in first quarter revenues although EU sales were down.
According to its latest Q1 trading update, total sales rose 2.2% to €76.6m from €75m. EU sales decreased 3.2% to €39.2m, while US sales grew 8.6% to €37.4m.
Q1 Adjusted EBITDA resulted at €5m, down 17.5%, with an Adjusted EBITDA margin of 6.5%. US EBITDA decreased 18.1% to €4.9m, while Europe EBITDA was break even.
Commenting on its performance, Belysse said: “While our US business saw a slow start, after an acceleration of shipments at the end of last year, volumes recovered in the second part of the quarter. The EBITDA margin saw a temporary drop affected by higher raw material costs following the change of our main yarn supplier last year. This transition and the negative impact on margins are coming to an end.
“In Europe, Q1 2023 faced a challenging macro-economic environment with weak demand across the market, in particular in residential renovation. Countering the negative volume impact, we have been seeing some recovery in our unitary margins from last year’s low levels.”