On the way to becoming a company focused exclusively on insulation materials, Belgian PU processor Recticel (Brussels; www.recticel.com) had a turbulent 2021 – especially towards the end of the year. The takeover dispute with Greiner and the sale of the two business lines, Bedding (see Plasteurope.com of 19.11.2021) and Engineered Foams (see Plasteurope.com of 10.12.2021) certainly did not create any boredom for the management team, headed by Olivier Chapelle. Despite this, the figures for financial year 2021 certainly do not reflect the turbulence in a negative way.

On the contrary: net sales rose by nearly 70% to EUR 1.03 bn, and adjusted EBITDA was up 145% to nearly EUR 110 mn. Both were driven, above all, by the purchase of FoamPartner in April 2021 (see Plasteurope.com of 16.11.2020). Around half the sales growth is attributable to this acquisition alone: in its nine months at Recticel, FoamPartner’s sales amounted to EUR 202.6 mn, which in turn benefitted the Engineered Foams business line that is being sold.

As a result, sales of Engineered Foams grew by 83% to EUR 583 mn, while adjusted EBITDA nearly doubled to EUR 63.3 mn. Insulation, with net sales of EUR 390 mn, rose by just under 60%, but the growth in adjusted EBITDA far exceeded the figure for the larger division – up 126% to reach EUR 62.6 mn.

Chapelle is aiming, by 2025, to double the sales of this business line, which would remain after the conclusion of the divestments – that would be around EUR 800 mn. Even with the forecast growth rates, this goal can probably not be reached organically, but the company is keeping any possible acquisition plans for the future under lock and key.

Recticel says it has in most cases been able to pass on increased raw material costs. The biggest problems for the company have been the production shutdowns, reduced car sales because of the shortage of computer chips, and transport costs. The rising energy prices, on the other hand, have not really had a noticeable effect.

In view of the extensive changes to the company’s portfolio, the management has held back on providing a forecast for the rest of the year, stating merely that developments in the current financial year have been good. On the downside, however, Recticel also expects to see continuing shortages of raw materials and further rising prices for the rest of 2022.