Brussels, Belgium – Sales were up 12.2% in the first half at Recticel, rising from €266m in the half last year to €299m this. Adjusted EBITDA was up 37.9% to €25.1m in the half, an increase from the €18.2m reported in the first half of 2023.
There was underlying double-digit organic volume growth in both its insulation boards and insulated panels business, despite the markets in western Europe being either flat or contracting, the company said, with adverse weather conditions causing delays in some construction sites, it said.
Residential continues to underperform, while the commercial market has shown more resilience. The company believes that the bottom of the cycle may have been reached in most western European markets, and a return to market growth is now being seen in the UK. Raw material prices have now dropped and, it said, have the potential to drop further in the second half of the year.
CEO Jan Vergote said the results confirm the effectiveness of its market-driven strategy. “In insulation boards, we are lowering our cost base and increasing sales volumes,” he said. “Our recent substantial expansion of the Belgian and French plants is on stream. We are building up our innovation pipeline and are launching 15 new insulation boards products over the next 18 months.”
Continued volume growth is expected for the rest of 2024. Adjusted EBITDA for the year is predicted to be about €50m.
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