Trading update 3rd quarter 2017
- Combined 3Q sales growth of +11.9%, including a -0.8% adverse currency impact
- Combined year-to-date 9M sales growth of +7.8%, including a -1.0% adverse currency impact
- Combined net financial debt: EUR 151.6 million (30 June 2017: EUR 151.4 million; 30 September 2016: EUR 131.9 million)
Olivier Chapelle (CEO): “In overall supportive end-use markets, our sales growth has accelerated to 11.9% during the 3rd quarter of 2017, thanks to strong volume growth in Automotive and overall higher selling prices resulting from the pass-through of higher chemical raw material prices.
The Group continued to face very challenging chemical raw material supply conditions during the 3rd quarter. Chemical raw material prices have reached new record levels, driven by the global market demand, and by incidents and planned maintenance operations at supplier’s production facilities. Moreover, MDI supply remained insufficient to cover market demand, limiting Recticel’s ability to fullfil the demand from its customers of rigid insulation panels; no substantial improvement is expected in the short term.
Under these unfavourable raw material market conditions, combined with adverse movements of the Pound and the Dollar, our commercial teams have continued to take the appropriate measures to safeguard profit margins.
Our Automotive Interiors division has managed to further reduce the negative impact of the fire incident in our Interiors factory in Most (Czech Republic). The Most facility has been largely rebuilt, and the plant is now fully operational, although not yet at the normal performance level.
The substantial TDI quality issue of BASF, impacting our Flexible Foams and Bedding divisions (see press release of 10 and 19 October 2017), has finally been assessed by BASF to generate neither health nor safety hazard. As a precautionary measure, BASF has offered to collect affected foams at Recticel and/or Recticel’s customers. Recticel has reserved its rights, and expects to recover in due course all damage in this regard from its supplier and/or insurance companies."
The Group maintains its guidance for the full year 2017: Recticel expects continued growth of its full year 2017 combined sales and an increase of its full year 2017 REBITDA.