Recticel Annual Results 2020 - Solid 2nd half 2020 and Strategic Repositioning
- Net sales: from EUR 878.5 million to EUR 828.8 million (-5.7%), including a -0.3% currency effect
- Adjusted EBITDA: from EUR 70.7 million to EUR 58.8 million (-16.8%)
- Result of the period (share of the Group): from EUR 24.8 million to EUR 63.2 million, including EUR 68.7 million result from discontinued operations
- Net financial debt (cash): EUR 4.6 million, including IFRS 16 lease liabilities
- Proposal to pay a gross dividend of EUR 0.26 per share
Olivier Chapelle (CEO): “After a -17.5% sales decline in 1H2020 caused by the COVID-19 lockdown, the 2H2020 was marked by significant sales fluctuations varying from one business segment or country to another, influenced by the subsequent waves of the COVID pandemic and the related precautionary measures taken by national governments. In this difficult context, we managed to generate a robust 7.0% sales growth in 2H2020 and a 10.0% increase in Adjusted EBITDA.
Numerous ‘force majeure’ events at the premises of our chemical raw material suppliers have created and continue to create supply shortages of polyols and isocyanates. Our suppliers have used this situation to implement price increases at an historically high pace, leading to new all-time highs. In response to this, we were compelled to mitigate these cost increases through corresponding sale price increases. The situation is expected to normalize as of 3Q2021.
2020 has also been a milestone year for the important strategic repositioning of our Group. We have at last succeeded in divesting our Automotive Interiors operations, which, together with the disposal of our 50% participation in the Eurofoam joint venture, has enabled the signing of the acquisition of FoamPartner. This transaction will create a truly global player in Engineered Foams, and the preparation of its closing is progressing well.
While pursuing further external growth opportunities, the Board of Directors has now also decided to launch a divestment process for our Bedding division, in line with our amended strategy.“
Our underlying end-use markets remain difficult to predict in the context of the COVID-19 pandemic. Regardless of these uncertainties, our Group expects in 2021 a substantial increase in sales, and a 30% increase of its Adjusted EBITDA, not taking into account the contribution from the FoamPartner acquisition nor the related synergies.