Disappointing first half of the year at Recticel

(ABM FN) Recticel has had a disappointing half-year, which has translated into a bleak outlook for 2023. This was clear from the half-year figures on Thursday morning.

Recticel expects to achieve adjusted EBITDA of between 40 and 45 million euros in 2023, the company announced Thursday morning. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in 2022 are still €62.2 million.

When publishing its first-quarter numbers, Recticel had already assumed a significant decline in EBITDA in 2023.

Costs of chemical raw materials, steel and to a lesser extent mineral wool have decreased, which should create conditions for future volume growth.

While demand remains volatile, the company is seeing improving demand, especially for insulated panels.

Recticel is entirely dependent on European construction markets, which remained very challenging in most sectors and countries during the first half of the year, the company said in notes to the figures.

In residential construction markets, new construction and renovation activity has been seriously impacted by a combination of high inflation and high interest rates, putting pressure on disposable income.

Fewer projects were launched in industrial and commercial markets, and some projects were postponed.

These market trends have been observed in most European countries, with the exception of France which has remained largely dynamic.

As a result of these weak markets, trading volumes decreased by more than 15 percent compared to the first half of last year, in a context of significant competition that led to price deflation and pressure on margins.

Revenue and earnings were disappointing in the first half of 2023.

The turnover fell from 287.2 million euros in the first half of 2022 to 266.1 million euros, a decrease of 7.4 percent.

Adjusted EBITDA decreased from €31.7 million to €18.2 million. This represents a decrease of 42.6 percent.

The result for the period still amounts to €2.2 million, but this is significantly lower than last year’s €34.6 million.

The net cash position as at June 30 was €142.3 million.

The company reached an agreement to sell its 33% stake in Orsa Foam.

Following the completion of the sale of engineering foams to Carpenter on 12 and 13 June 2023, and the resulting net cash position of €142.3 million, Recticel is examining various acquisition options. Talks on this matter are going well.

Source: ABM Financial News

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