Skip to main content
Sister Publication Links
  • Middle East Foam & Polyurethane
  • UTECH Asia/PU China
  • UTECH Europe
  • UTECH Las Americas
Subscribe
  • My Account
  • Login
  • Subscribe
  • Ukraine
  • News
    • Asia
    • Americas
    • Europe
    • M & A
    • Financial results
    • Automotive
  • Data
  • Information
    • Country Overview
    • Market Sector overviews
    • Technical articles
    • Company profiles and strategies
  • Events
    • Exhibitions
    • Conferences
    • Webinars / Livestreams
    • Become a Speaker
  • Advertise
  • Contact Us
  • Issues
  • Subscribe
MENU
Breadcrumb
  1. Home
  2. News
August 31, 2020 09:01 AM

Recticel saw business return as H1 2020 progressed

Simon Robinson
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Brussels — Recticel generated first half 2020 sales which were down 18% on H1 2019 at EUR374.3m but business came back as the half progressed.

    Adjusted EBITDA across the business fell 45% and hit EUR19m in the half. In the same period in the previous year the figure was EUR34.6m.
     

    Chapelle: Business returned as half progressed

    CEO Olivier Chapelle said that coronavirus had hit the company in the first half of the year, but things are getting better. 'After reaching a low point of -51.5% in April 2020 versus April 2019, the sales shortfall versus last year has improved to -35.4% in May and -9.3% in June. This recovery trend continues with July 2020 being -4.1% lower than July 2019.'

    To cope with the fall in demand, Recticel, cut production; laid off workers temporarily; and, strictly controlled spending and capital expenditure.

    'As a consequence, the cash consumption of our continued operations and the negative impact on Adjusted EBITDA have been reduced to the maximum extent possible,' he said.

    Chapelle finished his comments on a high note following recent M&A activity. He said: 'the Group ended the second quarter with a net positive cash position of EUR11.4m and ample financial headroom to focus and engage in the execution of its growth strategy in its higher value-added business segments.'

    Looking at key divisions at the company. The Flexible Foams business sales dropped by 22% between the first half of 2019 and 2020 and reached EUR147.1m. Recticel said that there was a rebound in demand for comfort foams in June. However, technical foams remained more subdued, mainly due to the slower restart of automotive and industrial customers. 

    At the same time, adjusted EBITDA in the division declined by 45% and was EUR10.3m. This is because fixed costs in the business were could not be fully offset by cost savings in the period.

    In the insulation business sales shrank by 22.3% between the 2019 and 2020 halves. Coronavirus lockdown's hit the business between March and May. But pent-up demand from the building sector took May demand this year above that in 2019. But lower raw materials prices depressed the prices that Recticel could get for its products. 

    This fed through to Adjusted EBITDA which shrank by 33.9%. It was EUR11.3m compared with EUR17.1m in the period last year. Lower volumes and a 'competitive pricing environment' contributed to the decline in profitability. Recticel's new plant in Mantsala, Finland is gradually ramping up to full production, the company said.

    Looking ahead to the rest of the year Recticel confirmed its earlier guidance. The company said that if coronavirus remains under control, the second half of 2020 should compare with the second half of 2019. 

    Recticel numbers H1 2020 (EUR m)
    2020 2019 Change %
    Sales 374.3 453.8 -17.5
    Adjusted EBITDA 19.1 34.6 -44.8
    Margin % 5.1% 7.6%
    Flexible Foams
    Sales 147.1 189.4 -22.3
    Adjusted EBITDA 10.3 18.8 -45.2
    Margin % 7.0% 9.9%
    Insulation
    Sales 112.7 129.8 -13.2
    Adjusted EBITDA 11.3 17.1 -33.9
    Margin % 10% 13%
    Bedding
    Sales 109.2 119.8 -8.8
    Adjusted EBITDA 4.5 6.9 -34.8
    Margin % 4.1 5.8
    Source: Recticel
    Recommended for You
    Dry cleaning solvents recycled into urethanes
    Dry cleaning solvents recycled into urethanes
    grupo antolin headliner 800
    Grupo Antolin launches eco-friendly automotive headliner
    iStock 800 executive jet aircraft interior
    Chromatic’s PU 3D printing materials approved for aircraft use
    Latest Issue
    December 2022/January 2023
    Get the latest edition here
    View All Archives
    Get our newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Register to access our archive of leading information on the polyurethanes industry.

    Subscribe now
    Connect with Us
    • Twitter
    • LinkedIn
    • Facebook
    • Youtube

    Follow us on social media for the latest polyurethanes industry news and event updates.

    Logo
    Contact Us

    Crain Communications
    11, Ironmonger Lane
    London
    EC2V 8EY
    United Kingdom

    Editorial
    Phone +44 (0) 20 3287 5935
    Email click to send

    Customer Service
    Phone +1 313 446 0450
    Email click to send

    Resources
    • Advertise with Us
    • Media Kit
    • Staff
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Ukraine
    • News
      • Asia
      • Americas
      • Europe
      • M & A
      • Financial results
      • Automotive
    • Data
    • Information
      • Country Overview
      • Market Sector overviews
      • Technical articles
      • Company profiles and strategies
    • Events
      • Exhibitions
      • Conferences
      • Webinars / Livestreams
      • Become a Speaker
    • Advertise
    • Contact Us
    • Issues
    • Subscribe