KBB

KBB

News: 

Cosentino Releases 2023 Financial Results

April 2, 2024

Cosentino Group, the Spanish global leader in the production and distribution of innovative and sustainable surfaces for the world of architecture and design – including premium hybrid mineral surface Silestone and ultra-compact Dekton, closed 2023 with a turnover of $1.7 billion. Significant investments were made in key areas that support the brand’s business model, including: commitment to innovation and sustainability, human capital, and its global logistics network and digital transformation. These investments led to strong job creation, resulting in over 6,000 Cosentino employees across the globe for the first time.

 

Key Earnings

The brand’s earnings before interest, taxes, depreciation, and amortization amounted to 302 million dollars, and net income reached 105 million dollars. These results can be attributed to the leveling of market conditions, falling more in line with the conditions of 2021, which accounted for a turnover of 1.5 billion dollars. This turnover has counted on a compound annual growth rate of 9% since 2019, with a growth of more than 40% compared to the last pre-covid year. As for EBITDA, the compound annual growth rate since 2019 has been 9.4%, even higher than sales, demonstrating sustained and profitable growth.

In terms of geographics, the company’s sales continue to come mostly from international markets, reaching 92% with the main markets being North America (the United States and Canada), accounting for 57% of the turnover in 2023, followed by Europe at 32%. As far as the performance of specific product brands, Dekton stands out as it managed to grow 14% compared to the previous year. Particularly noteworthy is its growth in North America, with a year-over-year growth of close to 50%. This upward trend places the Dekton brand at almost 30% of the company’s total turnover. Silestone hybrid mineral surface remains the most renowned brand, accounting for 62% of sales for the year.

 

Sustainable, Industrial and Commercial Expansions

Despite the slight slowdown, the company has continued to make important investments totaling over 121 million dollars, focused on its Industrial Park in Cantoria (Almeria). Sustainability is inherent to the DNA of Cosentino Group, leading to further investments in R&D and innovation, robotization, industrial extensions, and, especially, the circular economy and a commitment to a new energy model. Cosentino activated the third manufacturing line for Dekton, its ultra-compact, carbon-neutral stone, and completed the second phase of its photovoltaic plant with the installation of more than 27,000 solar panels on the roofs of its factories and warehouses, which increased electricity production capacity for self-consumption to 35MW/peak. Investments were also made for the construction and activation of Cosentino’s urban wastewater regeneration plant.

In terms of investment in foreign commercial assets, Cosentino remains committed to its international growth and expansion plan. In 2023, the company opened eight “Cosentino City” stores around the world, including the relocation in London, as well as Boston, Seattle, Vancouver, Antwerp, Istanbul, Lisbon, and Sao Paulo. Additionally, five new “Cosentino Centers” were completed, including two in Italy (Bari and Catania), one in Lithuania (Vilnius), one in Poland (Poznan, the third in the country), and in the U.S., in Boise, Idaho, marking the 41st location in North America.

 

Workforce and Human Capital

In relation to the main corporate areas, the company once again made investments in environmental, health and safety assets, which amounted to over 31 million dollars, while the investment in R&D&I assets and projects was 24 million dollars.

Last year, the company generated significant quality employment with the creation of 188 new jobs, closing the year with a total of 6,039 employees. Of these, 58% are located in Spain, more specifically at Cosentino’s headquarters and Industrial Park in Cantoria (Almeria). The percentage of employees with permanent contracts remains above 95% for another year.

Finally, as part of the company’s responsibility towards the social and economic development of the countries in which it operates, and awareness that responsible taxation and taxes support this, in 2023 Cosentino maintained an effective global contribution through the payment of over $36 million of its own taxes (mainly corporate income tax, customs duties and other taxes), and collected over $366 million of taxes from third parties (mainly VAT and withholdings) generated by the development of its economic activity.

 

Investment Plan 2024-2026

Over the next three years, the company will maintain investment rates like previous comparable periods, approximately $433 million. This plan focuses on four main investment areas: expansion of production capacity in Spain; opening many new commercial assets around the world, mainly “Cosentino City” stores; reinforcement of the commitment to sustainability and innovation; and finally, starting the new manufacturing infrastructure in the United States.

This entire investment plan will be marked, on the industrial side, by a model of excellence that seeks to maximize safety, efficiency, and quality. In turn, commercial growth will be guided by a continued commitment to digital transformation, both in the company’s internal processes and in the relationship with its entire commercial ecosystem.

Photo credit: TrendyImages/Adobe