FIRST HALF-YEAR 2019 RESULTS
- Combined sales decreased by 7.6% on a comparable restated basis
- Combined Adjusted EBITDA: EUR 58.4 million, EUR 44.9 million before IFRS 16
- Result of the period (share of the Group): EUR 16.1 million, EUR 16.7 million3 before IFRS 16
- Combined net financial debt: EUR 201.1 million, EUR 83.9 million before IFRS 16 (30 June 2018: EUR 138.7 million; 31 December 2018: 100.2 million)
Olivier Chapelle (CEO): “Our topline has decreased by 7.6% during the 1st half of 2019, influenced by soft Automotive and Comfort markets and by selling price erosion as a consequence of the isocyanates raw material cost decrease. In the 2nd quarter, the volumes in our Insulation division remained very strong, and our Bedding division has turned the corner and is back on a growth path.
The Group’s profitability has shown good resilience in these unfavourable market circumstances, as profitability improved sequentially in the 2nd quarter versus the 1st quarter. The Flexible Foams division delivered a strong performance, and the lower profitability of the Insulation division, linked to start-up costs of the new plant in Finland and to temporary margin erosion, is back to standard level in the 3rd quarter of 2019. In Bedding, the profitability is improving as from the 2nd quarter, as a result of topline growth and mix improvement, and this trend is expected to extend into the 2nd semester.
Strong cash generation has enabled our like-for-like net financial debt to reach a new historic low.
The Group continues to optimise its overhead and operating cost structure and the announced closures of its Bedding plant in Hassfurt (Germany) and the Eurofoam Flexible Foams plant in Troisdorf (Germany) have now been finalised.
The Automotive Interiors divestment process continues its course in unfavourable market circumstances. Interested parties are currently assessing the division and we expect the outcome to be announced around the year-end.”
The economic and geopolitical environment remains highly volatile and increasingly uncertain. Taking into account the gradual profitability improvement within the first half-year, and our expectations for the remainder of the year, we anticipate our 2019 full year Adjusted EBITDA to be in line with 2018 on a like-for-like basis. Recticel is in a strong financial position and has demonstrated its ability to adapt to rapidly changing market conditions.