Trading update 3rd quarter 2021 - Strong performance despite significant cost inflation
- Net sales 3Q2021 increase from EUR 217.4 million in 3Q2020 to EUR 319.7 million (+47.1%), of which +15.8% organic growth, +0.5% currency effect and a EUR 66.1 million contribution from FoamPartner
- Year-to-date September 2021 net sales increase from EUR 591.6 million in 9M2020 to EUR 915.9 million (+54.8%), of which +31.2% organic growth, +0.2% currency effect and a EUR 138.0 million contribution from FoamPartner
- Net financial debt: EUR 189.0 million (30 June 2021: EUR 206.6 million)
Olivier Chapelle (CEO): “The positive sales trend observed during 1H2021 continued in 3Q2021, driven by very strong demand in Insulation. Demand in Engineered Foams and Bedding has stabilised, due to overall hesitating consumer confidence and global supply chain issues affecting among others the automotive production.
The chemical raw materials supply and prices are stabilizing, but volatility remains high given the recent steep inflation in energy costs affecting our suppliers. Our commercial teams continue to adapt pricing where necessary.
The integration of FoamPartner in Engineered Foams continues to progress according to plan.
The divestment process of our Bedding division is on track. It is the intention to sign a deal during 4Q2021 and to close the transaction in the course of 1Q2022.
The closing of the acquisition of the insulation board business of Gór-Stal is postponed sine die, as the owners have informed us recently that they do not want to proceed with the sale citing changed circumstances. Recticel will use all legal steps available to enforce the acquisition and obtain full damages.“
Despite declining momentum in some end-markets, reflecting a slowdown in economic recovery and supply chain disruptions, the Group confirms its expectation of an Adjusted EBITDA in a range between EUR 123 million to EUR 133 million for the full year 2021, including the contributions of FoamPartner (9 months) and its related synergies.