The initiatives enacted and the results achieved in 2017 (period going from January 1st to December 31st) by the Group in the field of sustainability.
Panariagroup closed the 2017 financial year with net income of €11.3m and turnover of €385m (a plus of 9%, which is also the average growth rate of sales over the last three years). These are convincing figures, the result of winning strategic choices such as the gradual process of internationalization, a broad and diversified product range, the capillary sales organization and investment in technological innovation in manufacturing. An EBITDA of €42.7m, with constant growth over the last five years, underlines the ability to generate wealth through the operations management.
Always in a close relationship with the areas it operates in but also focused on national and international dynamics, the Group – thanks to its presence on the stock market – is always aware of its responsibility towards its shareholders, actual and future, and financial institutions. The earning per share in 2017 is 0.25 Euro while the ratio between Net Financial Situation and Gross Operating Margin is 2.33 thus proving the sustainability of the finances of the Group.
Focus on: economic sustainability
Technological innovation is the key for Panariagroup to reach new targets in the production of porcelain stoneware tiles and for what concerns the environment.
Development and evolution of the production lines, continuous research, excellence in the choice of raw materials, variety and richness in the surface applications are a constant process and a daily challenge. Challenges such as having vision and investing on innovative technologies like laminated porcelain stoneware, product that not only created a new way of conceiving tiles, allowing their use in ways that until only a few years ago were considered unthinkable, but that also is a clear display of how to innovate a product with a strong focus on sustainability, thanks to a lower use of raw material and resources. Another clear example of the Group’s innovative ability is PROTECT, the exclusive line of antibacterial floor and wall covering developed in collaboration with Microban®, a world leader in hygienic technologies. PROTECT surfaces guarantee extremely high performances thanks to an antibacterial shield incorporated in the ceramic product, eliminating up to 99.9% of bacteria from the surface.
Focus on: eco-sustainable products for a better quality of life
Aware that, in the sector of the production of porcelain stoneware for flooring and wall covering, environmental awareness is more and more a critical factor for success, the Group was able to display, year after year, a true green philosophy that comes through at every level.
To prove the central role environmental sustainability has for the Group, every production plant in Europe, all highly automated and integrated, achieved the ISO 9001, ISO 14001 and EMAS environmental management certifications.
In 2017 Panariagroup began the process of transitioning the quality and environmental management systems to the respective new ISO 9001: 2015 and ISO 14001: 2015 standards.Focus on: significant 2017 initiatives in Italy
THE RAW MATERIALS
Raw materials used in the manufacturing plants are constantly monitored, in full respect of the environmental standards set by the law. Equally, the production waste is mostly reused thus causing a diminution in the use of natural raw materials. It is important to highlight how the Panariagroup production plants in Italy reutilise 100% of the water in the process. This allows the Company to reduce the consumption of natural water resources by up to 80%.
ENERGY AND EMISSIONS
Panariagroup constantly invests in improving energy efficiency in its plants. In 2017, the Group consumed 2,095 GJ from renewable sources and its Italian plants produced electric energy for internal consumption and reduction of CO2 emissions. Thanks to these systems, the Group avoided emissions of 218 tons of CO2 in 2017, an increase of 14% compared to 2016. Moreover, the production of laminated porcelain stoneware – the product on which the Group has strongly invested during the last years – requires less energy and has less environmental impact in terms of CO2 emitted.
Most of the waste produced, about 87,234 tons including 82 tons of dangerous waste, was destined for recovery. In fact, 93% of waste produced was recovered, a very high percentage. By contrast, only a small part was destined for disposal. Taking into account the increase in production recorded in 2017, the Panariagroup did not register a significant increase in waste production, thanks to the high percentage of material recovered and the efficient use of raw materials throughout all the production processes.
One of the core values of the Panariagroup is to always make people and their quality of life the center of our attention and to have the utmost respect for those who work with the Group.
It is precisely the people, their well-being, their growth and their professional development that is the key to the Panariagroup’s success. Operating in a complex economic environment, the Panariagroup has decided until now to maintain stable employment levels and solid relations with the local communities in which it operates, both fundamental elements in responsibly maintaining the Group’s economic growth.
The Group almost exclusively employs permanent staff. This type of contract that guarantees employees more stability and greater opportunities for professional growth. As of December 31, 2017, the Group employed 1,729 staff, up 2.6% on the previous year. Against the background of a growing workforce, the Group’s turnover between 2016 and 2017 remained almost stable. The number of new employees increased, particularly in the United States, in line with the development policy of the Group. It is also worth considering that the Panariagroup is committed to ensuring equal opportunities for employees and for those applying to become part of the organization.
Creating a motivating work environment and a sense of community is one of the key objectives to make every single employee feel an integral part of the organization. To this effect, various initiatives and activities in the plants in Portugal and the USA were aimed at strengthening the sense of belonging and endorsing employees as key elements of the Group.
Focus on: the value of employees working in foreign plants
In Italy, through a welfare system, the Group guarantees its employees support not only in terms of money but also with further benefits. Education and professional development are fundamental aspects for the Group, with the aim to develop skills and increase knowledge. For this reason, the Group companies analyze workers’ specific needs on an annual basis, in order to guarantee the delivery of the training activities that are best suited to them and to the operational requirements. Panariagroup implemented an integrated system of Quality, Environment, Hygiene and Safety Management in order to guarantee the protection and the safety of its employees.
Sustainability also includes relations with the local communities and associations in the territory that the Company actively support through donations and sponsorships.
The Panariagroup aims to strengthen relations with its suppliers so as to jointly create a system committed to sustainability throughout the whole value chain. Recognising the importance of giving value to local economies the Group favours carefully selected local suppliers.
Focus on: the italian welfare system