Creaton reports sharp improvement in first half profit

The leading German clay tile producer Creaton increased its trading profit for the first six months of the year from EUR1.5m to EUR4.0m on a broadly static turnover of EUR57.5m. Exports rose by some five per cent to EUR13.9m, with sales in Hungary, where Creaton is currently building a plain roof tile plant, being particularly strong.  While the German market shows no signs of revival, the reduction in the cost base on the back of recent investment and a continuing shift in the product mix towards the large format ‘Magnum’ tile, which carries higher margins, are the main reasons behind the marked improvement in profitability.