Recticel's Insulation sales shrank by 2.2% between the first half 2018 and 2019. They reached EUR 130m the first half of 2019. This compares with EUR 133m in the first half of 2018.
However, Adjusted EBITDA in the division shrank by 27%. It was EUR 16.7m the first half 2019. This compares with EUR 22.8m in the first half of 2018.
Volumes increased by 'a double-digit percentage' in the division, said Recticel. The company added that again lower raw materials prices fed through to lower selling prices. The EBITDA line was hit by the start-up of the company's new plant in Finland. This is ramping up production but is not yet able to absorb it own fixed costs.
The company's Automotive business sales shrank by 5.3% between the first half 2018 and 2019. Sales reached EUR 115.1m the first half of 2019. This compares with EUR 121.5m in the first half of 2018.
Meanwhile, Adjusted EBITDA in the division rose by 5.9%. It reached EUR 12.5m in the first half 2019. This compares with EUR 11.8m in the first half of 2018.
Sales fell because of weaker demand in China and the European markets. In addition, it is ramping up production at the company's plant in Tuscaloosa, Alabama.
Recticel changed its accounting standard between 2018 and 2019. The 2018 numbers quoted are all restated to the new standard. The 2019 numbers are after IFRS16.