Flooring manufacturer implements cost reduction following weak demand

Floorcoverings manufacturer Belysse, formerly known as Balta, has reported a decline in half year sales.

According to its latest trading update, total sales fell 5.2% to €155.6m from €164.2m. EU sales decreased 10% to €74.7m, while US sales fell 0.4% to €81m.

Half year Adjusted EBITDA resulted at €12.2m, down 27.7%, with an Adjusted EBITDA margin of 7.9%. US EBITDA decreased 11.2% to €13.9m, while Europe EBITDA was down 221.9% to a loss of €1.6m.

Commenting on its performance, Belysse said: “In Europe, Q2 2023 results have been affected by lower volumes due to low footfall in the Residential segment and delay of Commercial projects. Unitary margins have improved compared to prior year due to sales price increases.

“In response to the current weak demand across the European market, a fixed cost reduction programme was implemented in early July. We expect an in-year 2023 fixed cost reduction of €1.7m and an annualised permanent impact of €3.4m.”

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