Belgium: Recticel’s consolidated net sales fell by 6% year-on-year in 2020 to Euro829m from Euro879m in 2019. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 15% to Euro51.6m from Euro60.7m. Sales from its insulation business rose slightly to Euro249m driven by a strong second half of 2020 and higher prices due to higher raw input costs. The group made divestments to businesses held by its flexible foams and automotive divisions on 30 June 2020 significantly improving its sales and earnings in the reporting year.
Chief executive officer Olivier Chapelle said, “After an 18% sales decline in the first half of 2020 caused by the Covid-19 lockdown, the second half of 2020 was marked by significant sales fluctuations varying from one business segment or country to another, influenced by the subsequent waves of the Covid-19 outbreaks and the related precautionary measures taken by national governments. In this difficult context, we managed to generate a robust 7% sales growth in the second half of 2020 and a 10% increase in adjusted EBITDA.”
“Numerous ‘force majeure’ events at the premises of our chemical raw material suppliers have created and continue to create supply shortages of polyols and isocyanates. Our suppliers have used this situation to implement price increases at an historically high pace, leading to new all-time highs. In response to this, we were compelled to mitigate these cost increases through corresponding sale price increases. The situation is expected to normalise as of the third quarter of 2021.”
