Last year was a 'milestone for the important strategic repositioning of the group', according to Oliver Chapelle, CEO.
The company has restated its numbers for 2019. This accounts for its sale of 51% of its automotive interiors trim business to investment company Admetos in June 2020, and the sale of its 50% stake in Eurofoam to Greiner.
Further restructuring is on the way with an announced purchase of FoamPartner. This has not yet completed, but when it does, Recticel will become a truly global player in engineered foams, Chapelle said.
‘Its closing is progressing well,’ he said. 'The board of directors has also decided to started the divestment process for our bedding division.'
The coronavirus pandemic had a big impact on the company's numbers in 2020. Adjusted EBITDA fell by 44.9% in the first half of the year, but rose by 10% in the second half. In the first half Recticel said that it managed costs and laid off staff where necessary. In the second half, insulation and bedding volumes increased.
The company believes that raw material prices are likely to stay high until the third quarter of the year. But, it added: 'Many force majeure events have occurred after the restart of suppliers' production lines, which had been stopped in the first lockdown. This has resulted in an extremely tight supply situation in the last four months of 2020, and prices have increased at a historical speed, and to new record levels.'
Sales in the company's flexible foams business fell by 10.8% between 2019 and 2020, to EUR322m. Adjusted EBITDA across in the division dropped to EUR28.6m, a 23% fall.
The 1.8% rise in sales values in the second half of the year were swamped by the 22.3% fall in first half sales brought about by coronavirus lockdowns. This hit adjusted EBITDA in the division because it was impossible to fully absorb fixed costs, despite cost cutting and price rises.
Solid demand helped the company's insulation business sales to rise slightly in 2020 to EUR249.But adjusted EBITDA in the division fell by 12.3% to EUR27.7m in 2020.
In the first, half lines were closed because of coronavirus restrictions, and proved impossible to regain all the loses in the second half. Volumes were strong, Recticel said, but raw material prices rose steeply in the period. However, EC stimulus plans and green regulatory incentives will remain a key volume driver in Europe this year, it added.