Cosentino Hits $1.7 Billion in Annual Revenue; Australia Refines Engineered-Stone Ban; more.

Cosentino Group tops $1.7 billion in worldwide revenue for 2023; Australia refines engineered-stone ban; Coverings 2024 prepares for Earth Day.

This edition of Radio Stone Update is brought to you by Quantra.

0:23 Intro
00:33 Cosentino Hits $1.7 billion in 2023
03:38 A Word from Quantra
04:51 Australia Refines Engineered-Stone Ban
06:23 Landmark Revamps Tennessee Factory
07:30 Coverings 2024 Plans for Earth Day
09:17 NSI Opens Entries for 2024 Pinnacles, Industry Honors
11:35 Koteles Joins Northwood Machines for Midwest U.S.
12:23 Duve New ISFA Membership Director
13:03 Mapei, Daltile Headline Sponsors for Flooring Summit
14:23 Outro

Radio Stone Update is presented on the first and third Wednesdays every month at 9 a.m. everywhere on Earth with the latest news and insights in hard surfaces. Check our archives at www.radiostoneupdate.com.

Transcript

00:23

Hi, I’m K. Schipper with the latest in hard surfaces industry news from Radio Stone Update.

00:33

Cosentino Group closed 2023 with an income of $1.7 billion. In its year-end report, the Cantoria, Spain-based company also reported it invested more than $121 million in expansion, product innovation and the creation of 188 jobs.

Significant investments were made in several key areas, including its global logistics network and digital transformation. The resulting jobs creation brough the total of Cosentino employees worldwide to more than 6,000 for the first time.

The brand’s earnings before interest, taxes, depreciation, and amortization totaled $302 million, with a net income of $105 million. The company attributes these numbers to a leveling of market conditions, falling more in line with the conditions of 2021, which accounted for income of $1.5 billion.

Income, counted on a compound annual growth rate of 9 percent since 2019, has been 9.4 percent, or even higher than sales, demonstrating sustained and profitable growth.

In terms of geographics, the company’s sales continue to come mostly from international markets. The United States and Canada accounted for 57 percent of the income in 2023, followed by Europe at 32 percent.

Cosentino’s Dekton® reports a growth rate of 14 percent compared to the previous year. Particularly impressive is Dekton’s growth in North America, with a year-over-year growth rate of close to 50 percent. This trend places the Dekton brand at almost 30 percent of the company’s total sales.

Silestone®, Cosentino’s hybrid mineral surface, remains the most popular brand, accounting for 62 percent of sales last year.

Investment in foreign commercial assets also remained critical to Cosentino in 2023. The company opened eight “Cosentino City” stores around the world, including Boston, Seattle, and Vancouver in North America. Five new “Cosentino Centers” were also completed, including one in Boise, Idaho. The Boise location is the 41st in North America.

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

Cosentino Group is a global family-owned company that produces and distributes innovative surfaces for architecture and design. It currently distributes its products and brands in more than 120 countries. Its North American operations are headquartered in Coral Gables, Fla.

04:51

Australian officials have announced that engineered-stone fabrication can continue through 2024, but only under special circumstances. They voted late last year to ban quartz surfaces effective July 1.

The country’s work, health and safety ministers met in late March to iron out procedures on the ban. During the second half of the year, the exemption will apply only to projects with a contract agreed to on or before Dec. 31, 2023. Fabrication methods will be strictly controlled, however.

That means fabrication will be subject to stronger regulations for high-risk crystalline processes. A final determination on the exemption regulations will be considered later this month. Specifically cited for further enforcement are companies that attempt to rebrand engineered stone as a different product, or who do dry work with crystalline silica in all industries.

For now, the ban applies to engineered stone blanks, panels, and slabs. However, it doesn’t apply to engineered stone that doesn’t require processing. It also excluded all sintered stone and porcelain products, although more studies are planned on those materials.

Safe Work Australia is reviewing the health risks to workers associated with processing slabs and panels made from alternative materials which may contain low amounts of crystalline silica or be free from it. That review is scheduled to be completed next year.

06:23

Landmark Ceramics celebrated the latest significant expansion and investment in its Mt. Pleasant, Tenn., headquarters in late March.

The ceremony marked the completion of investments made to increase Landmark’s production capacity, expand its warehouse, renovate its showrooms for indoor and outdoor products and improve its logistics services. The plant now includes more than 1 million ft2 of covered area.

A part of Italian porcelain manufacturing group Gruppo Concorde, Landmark Ceramics officially started U.S. production in 2016 after an initial investment of more than $100 million. The recent improvements doubled the company’s total investment and increased annual production capacity to 80 million ft2.

More than 200 people attended the event, including Tennessee Gov. Bill Lee and Tennessee Economic and Community Development Commissioner Stuart McWhorter. Also on hand was Landmarks Ceramics CEO Filippo Sgarbi who said the company was excited to reveal its latest renovation, which started in 2022.

“These latest important investments to increase our production capacity and create a brand-new Logistics Hub will give Landmark Ceramics even more tools to provide all its customers a better service and resources to successfully compete in the market,” Sgarbi said.

07:30

When Coverings 2024 opens for business April 22 in Atlanta, show organizers will be focusing on more than just tile and stone. The exhibition and conference will also include a curated selection of sustainability-centric show activities to commemorate Earth Day.

This year’s Coverings, scheduled for the Georgia World Congress Center April 22-25, is focusing on sustainable design, building and installation practices through ceramic tile. Earth Day festivities will feature a wide selection of learning sessions, workshops, displays, tours, and philanthropic programs to showcase the many eco-friendly aspects of ceramic tile.

One program will feature mosaic artist David Arnott, who will be crafting a tile mosaic from leftover tiles from Coverings’ exhibitors. The completed mosaic will then be donated to a local Atlanta organization.

Coverings 2024 is bolstering its commitment to sustainable design, building and installation practices involving ceramic tile and natural stone with a range of environmentally focused educational opportunities of particular interest to the architecture and design community.

Other Coverings 2024 education within the show’s “Sustainability” emphasis include “Building Resilience for Health” and “Reducing Embodied Carbon with Natural Stone,” both of which are scheduled for April 24.

To learn more about the Coverings 2024 Earth Day activities, go to www.coverings.com/earth-day/. To learn more about the show and to register at no cost, go to www.Coverings.com

09:17

The entry period for the 2024 Natural Stone Institute awards program is now open. The association is calling for entries for the Pinnacle Awards, Industry Recognition Awards, and scholarship program.

The Pinnacle Awards honor the projects whose beauty, creativity, ingenuity, and craftsmanship reflect professional mastery in the use of natural stone. Recognition is given to both residential and commercial applications.

Pinnacle Awards are given in the following categories:
Commercial Interior;
Commercial Exterior;
Renovation/Restoration;
Residential Interior/Exterior (single and multi-family);
Architectural Carving/Lettering/Sculpture;
Public Landscapes/Parks/Memorials, and;
Kitchen/Bath
The Grande Pinnacle Award, sponsored by Marmomac, is presented to the jury’s choice for the best overall project. Pinnacle Award submissions are due June 20.

The Industry Recognition Awards celebrate individuals in the stone industry for exemplary contributions to the industry and association over several years. Those awards include:
The Migliore Award for Lifetime Achievement;
The Women in Stone Pioneer Award;
The Natural Stone Craftsman of the Year Award;
The David Fell Spirit of Service Award, and;
The Thor Lundh Quarrier Award (new this year).
Industry Recognition Award submission deadlines are May 20.

In addition, two scholarships, the Natural Stone Scholarship, and the Women in Stone Empowerment Scholarship, provide hands-on education opportunities for aspiring professionals. Scholarship applications are also due May 20.

Award recipients will be celebrated at the Natural Stone Institute Awards Ceremony at StonExpo in Las Vegas in January 2025. Awards are open to NSI members. For more information on each award, including nomination forms, submission requirements, scholarship information and details on past recipients, go to www.naturalstoneinstitute.org/awards

In other news around the industry….

11:35

Travis Koteles is the new sales manager for the Midwest territory of the Stone Division of Northwood Machine. Koteles will cover Illinois, Indiana, Iowa, Kansas, Michigan Minnesota, Missouri, Nebraska, North Dakota, Ohio, Oklahoma, South Dakota and Wisconsin.

Based in Fenton, Mich., Koteles gained industry experience working in a stone shop powered by a Northwood Machine during college. He comes to Northwood from Zoller Inc., a Northwood industry partner. He can be reached at tkoteles@northwoodmachine.com, or at 502-523-0320.

12:23

The International Surface Fabricators Association -- the ISFA -- announces the appointment of Heather Duve as its new membership director. In her new role, Duve will focus on membership growth and retention, as well as contribute to the development of events, programs, groups, resources, and other initiatives.

Duve has devoted her career efforts to the nonprofit sector, holding membership services positions for various groups, particularly trade associations. She holds a Certified Association Executive designation from the American Society of Association Executives.

13:03

MAPEI Corp. and Mohawk Industries’ Daltile/Mohawk Group have signed on as headline sponsors for the Flooring Sustainability Summit scheduled for July 17-18 in Washington. The Flooring Sustainability Summit will bring together sustainability leaders within the flooring industry, architects and designers, policymakers, advocacy groups and more.

Brittany Storm, MAPEI’s sustainability manager, says that company has supported various sustainability initiatives since its founding in 1937. “We know the importance of building with sustainable materials and the long-term positive impacts it will have on the environment,” she says.

Summit Chairman Bill Griese says that as multi-divisional flooring companies, the support of MAPEI and Mohawk symbolizes the Summit’s aim for proactive cooperation between different flooring sectors. Co-hosting the Flooring Sustainability Summit are Tile Council of North America, Natural Stone Institute, National Wood Flooring Association and North American Laminate Flooring Association. For additional event information or to register, go to www.flooringsummit.com.

14:23

Remember, for the latest hard surfaces import data, go to Hard Surface Report, which appears monthly at www.hardsurfacereport.com. For a transcript of this broadcast, go to www.radiostoneupdate.com. For Radio Stone Update, I’m K. Schipper, and we’ll see you here again soon.