Trading update 3rd quarter 2020
Solid recovery following the COVID-19 crisis in first half-year 2020
- Net sales 3Q2020: from EUR 212.0 million in 3Q2019 to EUR 217.4 million (+2.5%), including a -0.5% currency effect
- Year-to-date September 2020 net sales: from EUR 665.8 million in 9M2019 to EUR 591.6 million (-11.1%), including a -0.2% currency effect
- Net financial debt: EUR 9.3 million (including EUR 52.9 million IFRS 16 lease obligations)
Olivier Chapelle (CEO): “After a sales decline of 32.3% in the 2nd quarter of 2020 due to COVID-19, our top-line confirms its recovery with a 2.5% growth in the 3rd quarter versus 2019. The positive sales momentum developed month after month within the quarter, with July, August and September at respectively -4.0%, +3.2% and +8.1% versus 2019. Moreover, a strong net cash flow of more than EUR 30.0 million led to a further improved net cash position on our balance sheet.
The strength of the recovery, coupled with severe production issues at our raw material suppliers – including several force majeure situations –, has created critical supply issues as from September, which our suppliers have used to increase raw material prices at an historically high speed. As in past instances, our commercial teams are committed to fully neutralize these raw material price increases with selling price increases.
After the divestments of the 50% participation in the Eurofoam joint venture and of 51% of the Automotive Interiors division, the Group is adapting its organizational set-up and is actively working at the re-deployment of its resources to further develop its highest value added segments.”
Subject to there being no further severe COVID-19 impacts, the dynamics of the recovery observed during the second and third quarter lead the Group to confirm the 2H2020 consolidated net sales and Adjusted EBITDA of its retained business to be at the level of 2H2019.