Brussels, Belgium – Recticel faces 'significant' hits on sales and profitably in 2020, CEO Olivier Chapelle said in a trading statement.
Recticel Q1 sales down 6.2% on 2019 level
Looking at Q1 2020 numbers, he said: 'Compared to the first quarter of 2019, our top line decreased by 6.2%. The first negative consequences of the coronavirus crisis became apparent in February in China, and from mid-March in Europe.
'Due to the lockdown in Europe, many factories have been closed and others are working at reduced levels. In China, we observe a gradual recovery to pre-crisis levels, which gives some confidence for the future evolution in Europe.
'While the negative impact on sales and profitability will be significant this year, Recticel['s] strong financial position will allow [us] to pass through this crisis.'
He added that it has binding agreements to sell its automotive interiors and its share of the Eurofoam joint ventures. These deals are expected to complete by the end of the quarter and will further strengthen the company's financial position, he said. Recticel plans to use the proceeds to help it grow in other business areas.