• Third quarter net sales decrease from € 160.2 million in 2022 to € 132.3 million (-17.5%) in 2023
• Year-to-date September net sales decrease from € 447.5 million in 2022 to € 398.4 million (-11.0%) in 2023
• Net cash position: € 155.6 million (30 June 2023: net cash position € 142.3 million ; 31 December 2022: net financial debt of € 250.0 million)
• Divestment of the 33% share in Orsa Foam completed on 11 October 2023 and first instalment received

Jan Vergote (CEO Recticel): "European construction markets have further contracted throughout the third quarter of 2023.

Compared to the first half of 2023, our Insulated Panels activity has increased volumes and profitability generally in line with our previous outlook and will also enter 2024 with a stronger order book then at the start of 2023.

On the contrary, our Insulation Boards activity has been confronted with additional margin pressure, severely impacting profitability.

These market trends have been observed now in all European countries and our teams are working on several projects to compensate for these shortfalls going into 2024, as no material improvement in market conditions is expected.

Our net cash position has further improved to € 155.6 million since June 2023, linked to disciplined working capital management, some M&A related incoming payments and positive interest income. We continue to further explore several acquisition opportunities to enhance our market and segment positions in Europe.”

OUTLOOK

While Insulated Panels has improved its performance compared to the first half of 2023, Insulation Boards’ profitability has further deteriorated due to increased competition in depressed markets.

In this context, we have to adjust our guidance downwards and expect our full year 2023 Adjusted EBITDA to come out between € 35-40 million.

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