|Press Release of Recticel – 30 August 2019|
|FIRST HALF-YEAR 2019 RESULTS
Olivier Chapelle (CEO): “Our topline has decreased by 7.6% during the 1st half of 2019, influenced by soft Automotive and Comfort markets and by selling price erosion as a consequence of the isocyanates raw material cost decrease. In the 2nd quarter, the volumes in our Insulation division remained very strong, and our Bedding division has turned the corner and is back on a growth path.
The Group’s profitability has shown good resilience in these unfavourable market circumstances, as profitability improved sequentially in the 2nd quarter versus the 1st quarter. The Flexible Foams division delivered a strong performance, and the lower profitability of the Insulation division, linked to start-up costs of the new plant in Finland and to temporary margin erosion, is back to standard level in the 3rd quarter of 2019. In Bedding, the profitability is improving as from the 2nd quarter, as a result of topline growth and mix improvement, and this trend is expected to extend into the 2nd semester.
Strong cash generation has enabled our like-for-like net financial debt to reach a new historic low.
The Group continues to optimise its overhead and operating cost structure and the announced closures of its Bedding plant in Hassfurt (Germany) and the Eurofoam Flexible Foams plant in Troisdorf (Germany) have now been finalised.