Recticel expects Engineered Foams divestment to close early next year

Belgian foam producer Recticel has reported a growth in third quarter sales as demand remained in line with last year.

Third quarter net sales increased 42.7% from €107.6m in 2021 to €153.5m in 2022, with year-to-date September net sales growing 26.9% from €337.2m in 2021 to €427.9m in 2022.

Recticel added that the divestment of its Engineered Foams division is expected to close at the latest by Q1 2023.

Olivier Chapelle, CEO Recticel, said: “The trends observed during the first half of 2022 have continued in the third quarter. The European construction market is extremely challenging with high inflation and is weakening. During the third quarter volumes have been slightly lower than in 2021. Our teams remain focussed on adapting to the changing environment.

“The divestment of Engineered Foams is expected to close at the latest by the first quarter of 2023, following the decision on 2 September 2022 by the Competition and Markets Authority in the UK to fast track the approval process.

“Our Insulation business is well positioned to respond to the immense challenges of our society: climate change, energy saving, and regional energy independence. Through innovation, organic growth, and M&A activities, we are dedicated to deliver on our growth promise.

“In this challenging overall environment, we expect Adjusted Ebitda of our continued business to reach between €60 and €65 million for the full year 2022.”

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