Balta Releases H1 2017 Results, Revenue Increase of 15.1%

Sint-Baafs-Vijve, Belgium, August 31, 2017-Balta, of which Bentley is now a part, has released its financial results for H1 2017. H1 2017 revenue increased by 15.1% to €333.9 million. Organic growth amounted to 6.1% driven by the company’s rugs business (+12.9% organic growth) and commercial business (+7.8% organic growth).

The acquisition of Bentley (completed at the end of Q1 2017) contributes to revenues as from April 1st and accounted for an additional 10.1% growth.

Bentley integration is on track. In June 2017, Bentley and Modulyss jointly showcased their products for the first time at the NeoCon trade fair in Chicago. A selected number of Modulyss products have been carefully chosen based on their European style and appeal to U.S. customers. The company expects the excitement by both the U.S. sales force and architect and design community to crystalize into revenues as from Q4 2017.

Rugs realized €126.4 million revenue, representing a 12.9% organic growth. Growth has been realized across all three key regions (Europe, North America and Rest of World). The growth in Europe was driven by the roll-out of new collections, while the growth in North America was primarily driven by the continued increased sales of outdoor rugs.

The residential division has realized €121.4 million revenue, despite the challenging market environment. On a constant currency basis, revenue was flat. In the segment’s largest end-market, the U.K. (representing just over 50% of sales), the company has recorded slight organic growth, partly as the result of promotional activity in core ranges with selected customers in anticipation of the further roll-out of higher end new products. The U.K. growth has been offset by a continued decline in continental Europe, in particular France and Germany.

Revenue in the commercial segment has increased by 79% to €72.5 million, driven by both the acquisition of Bentley at the end of Q1 2017 (contributing to reported revenue as from April 1st 2017) and the 7.8% organic growth of the European commercial business. Organic growth is driven by double-digit growth in tiles, as the company succeeded in increasing volumes and upscaling the product mix.