Floorcovering group Balta is embarking on a ‘new chapter’ following the sale of two of its businesses as Q1 sales grow 15%.

Last month, Balta Group nv announced that it completed the sale of its Rugs, Residential polypropylene (Residential PP) and Non-Woven businesses (the Discontinued Operations), together with the Balta brand, to Victoria PLC.

According to its latest trading update for the first quarter of 2022, total sales rose 15% to €75m, with both its Commercial division, up 15.7%, and Residential division, up 13.3%, delivering growth.

Adjusted EBITDA for the period resulted at €6m, down -33.6% against last year, with an adjusted EBITDA margin of 8%.

The declining EBITDA, despite strong revenue increase, reflects a “partially anticipated margin compression versus a strong Q1 2021 (that benefited from 2020 cost prices) and the rapid recent surge in input costs which still needs to be passed on to customers”, the group said.

Balta added that further price increases will be introduced in due course to ‘defend margins’.

Cyrille Ragoucy, CEO and Chairman of the Board of Balta Group nv said: “2022 marks a new important chapter in the history of Balta with the closing of the transaction with Victoria PLC and transformation of Balta Group nv into a more focused and resilient business.

“During Q1, we experienced a recovery of our commercial business with a strong order book conversion to sales as COVID-19 restrictions eased, while the results of our Residential PA business suffered from the significant headwinds caused by the unprecedented and sudden costs increases which require further commercial action in Q2.”

Following the completion of the divestment of its Rugs, Residential polypropylene and Non-Woven businesses to Victoria PLC in April 2022, Balta Group nv manufactures sustainable textile floor coverings for commercial and residential applications and commercializes its products focusing 90% on North-America and Europe under premium brands modulyss, arc edition, ITC and Bentley.