RECTICEL NV construction markets have further contracted
Compared to the first half of 2023, our Insulated Panels activity has increased volumes and profitability generally in line with our previous outlook and will also enter 2024 with a stronger order book then at the start of 2023.
On the contrary, our Insulation Boards activity has been confronted with additional margin pressure, severely impacting profitability.
These market trends have been observed now in all European countries and our teams are working on several projects to compensate for these shortfalls going into 2024, as no material improvement in market conditions is expected.
Our net cash position has further improved to € 155.6 million since June 2023, linked to disciplined working capital management, some M&A related incoming payments and positive interest income. We continue to further explore several acquisition opportunities to enhance our market and segment positions in Europe."
OUTLOOK
While Insulated Panels has improved its performance compared to the first half of 2023, Insulation Boards' profitability has further deteriorated due to increased competition in depressed markets.
In this context, we have to adjust our guidance downwards and expect our full year 2023 Adjusted EBITDA to come out between € 35-40 million.
1 As announced in the press release of 14 June 2023, The Soundcoat Company Inc. was not part of the divestment to Carpenter Co was transferred from Discontinued Operations to Continuing Operations as of 1 January 2022. The formerly published 2022 net sales have been restated accordingly.
Trimo d.o.o. (Insulated Panels) is fully consolidated as of 1 May 2022.
Press release - Recticel 3Q2023 Trading Update - 27 October 2023 - 7:00 CET | Page 1 of 3 |
Net Sales development
3Q2023 sales decreased by 17.5% from € 160.2 million1 in 2022 to € 132.3 million, including -0.8% currency effect, due to lower volumes and lower prices as a consequence of raw material deflation and competitive pressure.
Sequentially, from 2Q2023 to 3Q2023, volumes in Insulation Boards have remained flat and volume in Insulated Panels has recovered from a difficult first half. In parallel, the order intake in Insulation Boards remains subdued, while order intake in Insulated Panels remains at a level allowing to continue on the positive evolution observed in the third quarter.
Year-to-date September 2023 sales decreased by 11.0% from € 447.5 million1 in 2022 to
- 398.4 million, including -0.8% currency effect.
FINANCIAL POSITION
in million EUR
30 SEP 2022 | 31 DEC 2022 | 31 MAR 2023 | 30 JUN 2023 | ||||||||||
restated1 | restated1 | ||||||||||||
Total equity | - | 446.2 | - | 437.3 |
30 SEP 2023
-
Net financial debt excluding factoring | 254.5 | 239.8 | 250.8 | (151.0) | (163.9) |
+ Lease debt (IFRS 16) | 8.2 | 10.2 | 9.5 | 8.8 | 8.3 |
Consolidated net financial debt | 262.8 | 250.0 | 260.3 | (142.3) | (155.6) |
+ Drawn amounts under factoring programs | 17.8 | 13.2 | 18.9 | 0.0 | 0.0 |
Total consolidated net financial debt | 280.5 | 263.2 | 279.1 | (142.3) | (155.6) |
Gearing ratio (incl. IFRS 16) | - | 56.0% | - | N/A | - |
Leverage ratio (incl. IFRS 16) | - | 2.2 | - | N/A | - |
The Group's net cash position further improved by € 13.3 million over 3Q2023, due to disciplined working capital management, some M&A related incoming payments and positive interest income.
Press release - Recticel 3Q2023 Trading Update - 27 October 2023 - 7:00 CET | Page 2 of 3 |
Uncertainty risks concerning the forecasts made
This press report contains forecasts which entail risks and uncertainties, including with regard to statements concerning plans, objectives, expectations and/or intentions of the Recticel Group and its subsidiaries. Readers are informed that such forecasts entail known and unknown risks and/or may be subject to considerable business, macroeconomic and competition uncertainties and unforeseen circumstances which largely lie outside the control of the Recticel Group. Should one or more of these risks, uncertainties or unforeseen or unexpected circumstances arise or if the underlying assumptions were to prove to be incorrect, the final financial results of the Group may possibly differ significantly from the assumed, expected, estimated or extrapolated results. Consequently, neither Recticel nor any other person assumes any responsibility for the accuracy of these forecasts.
About Recticel
Recticel is a Belgian insulation company with a strong presence in Europe and the USA. It's overriding purpose is to accelerate the fight against climate change with solutions that advance a carbon-free economy and a better quality of life.
Recticel operates through four main activities. Recticel Insulation Boards designs thermal insulation boards and easy-to install thermo-acoustic boards for optimal comfort and energy efficiency in buildings. Trimo Insulated Panels enables the highest aesthetic standards and extends architectural possibilities, primarily in non-residential applications. Soundcoat Acoustic Insulation engineers noise control solutions used in some of the world's leading technological innovations. Turvac Vacuum Insulation provides vacuum insulation panels for cold chain activities in industries ranging from food to pharma.
At the end of 2022, Recticel employed 1,325 people in 11 facilities spread over seven countries and achieved sales of €587.8 million.
The company recently formalised its net zero emissions targets by submitting them to the Science Based Target initiative (SBTi).
Recticel is listed on Euronext in Brussels (Euronext: RECT - Reuters: RECT.BR - Bloomberg: RECT:BB).
Financial calendar
Annual results 2023 | 29.02.2024 (07:00 AM CET) |
First quarter trading update 2024 | 29.04.2024 (07:00 AM CET) |
Annual General Meeting | 28.05.2024 (10:00 AM CET) |
First half year results 2024 | 30.08.2024 (07:00 AM CET) |
Third quarter trading update 2024 | 31.10.2024 (07:00 AM CET) |
Media & Investor Relations | Investor Relations |
Jan Vergote | Dirk Verbruggen |
Chief Executive Officer | Chief Financial & Legal Officer |
vergote.jan@recticel.com | verbruggen.dirk@recticel.com |
+32 2 775 18 01 | +32 2 775 18 91 |
Recticel | |
avenue du Bourget/Bourgetlaan 42 | |
1130 Brussels - Belgium |
This press release is available in English and Dutch on www.recticel.com
Press release - Recticel 3Q2023 Trading Update - 27 October 2023 - 7:00 CET | Page 3 of 3 |
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Recticel SA published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 October 2023 08:20:52 UTC.
