June 22nd, 2023
The group increased its sales by 1.9% despite the macroeconomic complexity and the slowdown in demand, achieving a net profit of 42 million euros.
Roca Group, the world leader in the design, production and marketing of products for the bathroom space, closed the 2022 financial year with a turnover of 2.092 billion euros, 1.9% more than in 2021, despite the drop in demand levels, largely due to the increase in the cost of energy, the inflation rise worldwide and, on the other hand, the negative impact of the disinvestment in Russia. The Group obtained a net profit of 42 million euros, preserving its growth trend, thanks to the continuous improvement in the efficiency of its production processes, the implementation of flexible business operations adaptable to different local needs, and the application of policies to reduce and control production costs. EBITDA was up to 356 million euros, equivalent to 17% of turnover.
In the evolution of sales, the increases obtained in Brazil, India, China, and also in Spain, which has maintained sustained growth since 2014 -except for the Covid consequences in 2020-, have been significant.
The CEO of Roca Group, Albert Magrans, highlighted that "in a year as complicated as this one, our professionals have made their involvement and effort count, prolonging the company's growth". He also emphasised that "net assets have risen to 1.7 billion euros, which reflects the financial strength of the group, which bases its growth on self-financing through the reinvestment of profits".
The company increased its investment effort to 135 million euros, up from 124 million euros in 2021, which were mainly allocated to: projects to expand and improve the production capacity of the plants in Brazil and India, a new factory for resin shower trays and composite bathtubs in Poland, the expansion of the bathroom furniture business in Spain and Portugal, and investments in decarbonisation, circularity and sensorization that guarantee the development of all production centres in terms of digitalization, sustainability and efficient use of resources.
On the other hand, the company has successfully executed the conversion of its plant in Croatia into a logistics centre, transforming it into a hub serving the main markets of Central Europe.
Since the launch of its decarbonisation plan in 2018, Roca Group has achieved a 39% reduction in its scope 1 and 2 CO2 emissions. It has also reduced its energy use intensity by 47% and, only in 2022, has installed more than 10,000 photovoltaic panels in multiple locations, including Gavà (Spain), Cantanhede (Portugal) and Suzhou (China), to reach a total of 21,800 panels counting on group's facilities worldwide.
Likewise, the water efficiency plan initiated at the factories of Burgos (Spain), Eskisehir (Turkey), Settat (Morocco) and Cantanhede (Portugal) in 2021 continues to make progress. With this in place, it has already achieved a 47% reduction in water consumption and a 55% reduction in the intensity of water use over the last five years.
Furthermore, Roca Group has managed to achieve a 74% level of reintroduction or recycling of its waste and a 54.6% reduction in its waste generation intensity over the same period.
One of the main milestones on adapting Roca Group's capabilities to the market is the extension of the industrial model of Competence Centres, which enables the company to respond with greater agility, efficiency and sustainability to user trends and demands. Competence Centres are configured as knowledge and technology hubs, that coordinate the actions of the entire group in their respective categories.
The integration of Royo and Sanit units into the group's industrial network, acquired in 2021, has particularly boosted the consolidation of this model, reinforcing the company’s global offer of integral bathroom solutions, including all product categories, in addition to sanitary porcelain: taps, bathroom furniture, installation systems, screens and accessories, composites and steel bathtubs.
During 2023, Roca Group has continued to consolidate its acquisition policy through the transaction of the US company Madeli. The group announced the purchase of the bathroom furniture and mirrors company, based in Florida, with 500 points of sale in the USA, helping to strengthen this product category and generating a strategic knock-on effect in a market where furniture takes on the weight of the refurbishment decision.
This year has also been fruitful in terms of investment in innovation through Roca Group's Corporate Venture Capital CVC platform: Roca Group Ventures. It has made an initial investment in Aquí Tu Reforma (ATR), a digital platform for home renovations aimed at improving the end-user experience, and has analysed more than 120 start-ups. The platform has also closed several collaborations through proofs of concept (POC) relied to connected bathroom products, fault management, new technologies and digital reputation.
