Brussels – Recticel, the European rigid and flexible foam company that is currently undergoing a restructuring process, had total sales of EUR1bn in 2021. This is up 67.4% on last year. Adjusted EBITDA across the business increased by 146% to EUR109.2m.
Recticel price management led to profitable 2021
CEO Olivier Chapelle said: 'We are happy with the very positive sales and profitability development in 2021, a year marked by changes at our company.'
Recticel has restated most of its accounts this year because of the different stages of the divestment processes it is undergoing. Broadly speaking, the bedding business that is being sold to Aquinos has been separated. The remaining engineered foams business, which includes some Scandinavian mattress production and is being sold to Carpenter, is still consolidated. FoamPartner was fully consolidated from 1 April 2021.
'The Insulation and Engineered Foams business performed very well in a very volatile environment,’ Chapelle said. ‘Chemical raw materials supply remains tight, and prices are showing little signs of stabilisation. Transportation and labour costs are increasing at an unprecedented rate, while the steep energy cost inflation has a minor impact.'
He said that microchip shortages and lockdowns in Austria, Germany and the Netherlands made the business more challenging, but that Recticel showed strong resilience and generated solid profitability and strong cash flow.
In the engineered foams business, sales rose by 83.2% to EUR583.6m in 2021. This compares with EUR318.5m in 2020. Adjusted EBITDA in the division increased by 16.2% to EUR172.8m in 2021, up from EUR149m in 2020.
Sales in the insulation business were up to EUR390.6m in 2021 from EUR249.2m in 2020, an increase of 56.7%. Adjusted EBITDA in the division rose 24.9% to EUR146.7m in 2021, compared with EUR110.1m in 2020.
Higher volumes, prices, a good product mix, and integrating FoamPartner helped to drive the numbers up in 2021. The EBITDA numbers were hit by restructuring charges for the FoamPartner business in the Netherlands and France, some legal fees, and the cost of exiting some onerous contracts
The increases were driven by solid volumes increases and prices which offset rising raw material costs. The new Finnish plant came on stream, and is expected to break even in 2022.