Recticel provides Q1 and Carpenter sale update

Belgian foam producer Recticel has reported a growth in first quarter sales as well as confirming it is considering a price adjustment within its Engineered Foams divestment to Carpenter.

According to its Q1 2023 trading update, sales increased 9.8% from €111.2m in 2022 to €122.2m in 2023, including a -1.3% currency effect, and including the sales of Trimo for 2023.

Recticel said that demand remained well below last year in nearly all product segments, while the Trimo insulated panels sales were integrated into the Group as of 1 May 2022. Net financial debt resulted at €276.8m, rising from €261.7m.

Commenting on the update, Olivier Chapelle, Recticel CEO, said: “In the first quarter of 2023, the European construction market has remained very challenging due to high inflation and interest rates. Reducing disposable income, coupled with expensive building materials, has led the market to further weaken. During this quarter, our volumes have been under pressure, ending up materially below the volumes of the first quarter of 2022. Our teams remain focused on adapting to this changing environment.

“As communicated on 6 April 2023, the closing of the Engineered Foams divestment to Carpenter Co. has not taken place at the end of March 2023.

“After approval of the proposed purchaser of the Recticel UK comfort foams activity by the UK Competition and Markets Authority, the share purchase agreement for this UK business was executed by all parties on 17 April 2023.

“With regard to the main transaction, Carpenter has recently requested a substantial price adjustment to the purchase price, invoking the current overall trading evolution. Recticel is considering all its options in this regard.

“The environment is expected to remain volatile and provides little visibility on the short term. The company expects its 2023 Adjusted EBITDA to be materially below the result of 2022.”

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