Franchi Umberto Marmi: In the First Half of 2023 Turnover Registered a Slight Decrease

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Franchi Umberto Marmi S.p.A., leading international company in the processing and trading of Carrara marble, listed on Euronext Growth Milan announces that total revenues at June 30, 2023 amounted to EUR 37.6 million, with a decrease of 9%, compared to the same period of the previous year

Total Revenues at June 30, 2023: EUR 37.6 million compared to EUR 41.5 million at
June 30 2022 (-9%), a decrease equal to approx. EUR 3.9 million mainly relating to sales
in the Middle East1 and in the Italian Market, which in the previous year recorded
higher results compared to the historical avarage values.

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Middle East: sales at June 30, 2023 amounted to approx. EUR 4.2 million, firmly
confirming itself as the third geographical destination, after Italy and China, and thus
consolidating a very important result with a view to the projects under development
in the area. The result is lower compared to the one achieved in the same period of
2022 (equal to EUR 6.8 million, just because deliveries for important projects were
concentrated in the first half of 2022), but still growing compared to previous years.

Italy: revenues amounted to EUR 17.3 million, a decrease of 11% (about EUR -2.1
million) compared to the same period of 2022. The domestic market is always the first
area for sales representing 46% of total revenues.

The United States: sales in the first half of 2023 reached EUR 2.9 million, down by –
32% compared to the same period of 2022 and they represent 8% of total sales for the
period.

China: in absolute value, revenues amounted to EUR 6.8 million at June 30, 2023,
decreasing by 15% compared to the same period of the previous year. Sales achieved
on the Chinese market represent the second most important destination contributing
to 18% of total revenues for the period.

In contrast to the decrease in some countries, mainly the Middle East, Italy, the United
States and China, there were significant increases in emerging markets such as South
Korea, Turkey, Mexico, India and Vietnam.

In the first half of 2023, sales of Statuario and Calacatta reached EUR 19.1 million,
equal to 51% of total sales, decreasing compared to 58% of the total recorded in the
first half of 2022.

Alberto Franchi Chairman and Chief Executive Officer of the Company commented: “The business results achieved in the first half of 2023 are particularly interesting, even if they slightly decreased compared to the sales achieved in the same period of 2022. These sales were supported by significantly high orders, caused by the euphoria witnessed on various markets due to the end of the pandemic and the consequent need for distributors to restock their warehouses. In 2023, the 37.6 million Euros of revenues gained in the first half of the year confirm a period of sustained growth that started in 2018 and is still ongoing with a compounded annual growth rate of approximately 4% (referring to the first half of 2018 when a revenue of Euro 31.7 million was recorded).

The result achieved in the Middle East is particularly important and the area now represents the third destination in order of importance and will certainly constitute a market of strategic interest for our Company in the future, in view of the important projects that will be developed in the area and which have been announced by the main market players.

Sales achieved in the Middle East, Italy and China had benefited in the first half of 2022 from important seasonal factors related to the request for advance payments on some shipments linked to important projects, which had contributed to the strong growth recorded in that period. In consideration of the foregoing, we are confident that we will be able to recover part of the results in the second half of the year, in view of the positive outcome of the exhibition we have just attended in China and especially the Marmomac scheduled for next September in Verona.

Also, the Chinese market today represents and will be in the coming years one of the main
development priorities that we will follow with great attention, as well as the US market, where important development projects are expected in the coming years, particularly in Florida.

Finally, I am pleased to announce that growing through external acquisitions is an absolute priority for Franchi Umberto Marmi and again this year we have implemented an operation through which our Company will be able to consolidate its presence on international markets also with new product qualities and new customers.”