Recticel Half Year Results 2023
- Net sales decrease from € 287.2 million in 2022 to € 266.1 million (-7.4%) in 2023
- Adjusted EBITDA: from € 31.7 million to € 18.2 million (-42.6%)
- Result of the period (share of the Group): from € 34.6 million to € 2.2 million
- Net cash position: € 142.3 million (31 December 2022: net financial debt of € 250.0 million; 30 June 2022: net financial debt of € 256.2 million)
- Agreement reached on the divestment of the 33% share in Orsa Foam
Sales and profits have been disappointing in the first half of 2023. Recticel is entirely dependent on the European construction markets, which have remained very challenging in most segments and countries during the period. In the residential markets, new build and renovation activities have been seriously impacted by a combination of high inflation and interest rate increases, weighing on disposable income. In the industrial and commercial markets, fewer projects were launched and some have been postponed. These market trends have been observed in most European countries, with the notable exception of France, which has remained quite dynamic.
As a consequence of these subdued markets, our volumes have been lower year-on-year by more than 15%, in a context of substantial competition leading to price deflation and pressure on margins.
After the closing of the Engineered Foams divestment to Carpenter on 12 and 13 June 2023, and the subsequent € 142.3 million net cash position, several acquisition opportunities are being pursued and progressing well, which will enhance our market and segment positions in Europe.
Input costs of chemicals, steel, and to a lesser extent mineral wool have decreased, which should create the conditions for volume growth going forward. Although still volatile, we see improvements in the demand, particularly in Insulated Panels.
In this context, we expect our full year 2023 Adjusted EBITDA to reach between € 40 and 45 million.