Brussels – Recticel's sales flipped from a decline of 33.3% in the second quarter of 2020 to 2.5% rise in the third, despite raw materials problems.
Recticel upgrades Q3 outlook despite raw material tightness
In a trading update, CEO Oliver Chapelle said: 'The positive sales momentum developed month after month within the quarter, with July, August and September at respectively 4%, +3.2% and +8.1% versus 2019.'
He said the strength of the recovery, coupled with severe production issues at raw material suppliers – including several forces majeures –created critical supplier issues from September. 'Our suppliers have used these to raise prices at an historically high speed,' he said.
Chapelle said that these price rises are being passed on to customers as quickly as possible.
He added that the company is now adapting its organisational set up, and is redeploying its resources to further develop the highest value-added segments of the business, with the revenue from its recent business sales.
The company sold its 50% share of Eurofoam and 51% of its automotive interiors division in July this year.