• Combined sales decreased by 6.2%
• Total combined net financial debt: EUR 246.9 million, including impact of IFRS 16 (31 December 2019: EUR 227.5 million; 30 March 2019: EUR 251.6 million)

Olivier Chapelle (CEO): “

Compared to the first quarter of 2019, our top-line decreased by 6.2% as the first negative consequences of the COVID-19 crisis became apparent in February in China and as from mid-March in Europe.

Our prime concern is the safety of our employees and we have taken all precautionary measures to eliminate the infection risk to the maximum extent possible. Due to the lockdown in many European countries, many factories have been closed and others are working at reduced output levels. In China, we observe a gradual recovery to pre-crisis levels, which gives some confidence for the future evolution in Europe, with many countries now planning a step-by-step exit from the lockdowns.

While the negative impact on sales and profitability will be material this year, Recticel’s strong financial position will allow us to pass through this crisis.

We are very satisfied to have been able to sign binding agreements to divest our Automotive Interiors division, as well as our participation in the Eurofoam Flexible Foams joint venture. When closed, later in the 2nd quarter, the proceeds generated by these divestments will further strengthen our financial position and provide the means to execute our growth strategy in our higher value added segments.”

OUTLOOK

Given the highly uncertain and rapidly changing COVID-19 situation and the expected impact of our two announced divestments, Recticel will provide its revised guidance for the year 2020 at the occasion of the announcement of the first half-year results on 28 August 2020.

Recticel is monitoring the situation closely and will continue to respond as required to help safeguard its workers and employees, while adjusting its operations and preserving its cashflows.

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