Recticel Annual results 2024

PRESS RELEASE

Regulated information – Inside information      

Brussels, 4 March 2025 – 07:00 CET     

Recticel Annual Results 2024

Jan Vergote, CEO Recticel:

“Recticel is pleased to announce strong revenue and profitability growth thereby clearly outperforming tough end markets. 

Our relentless focus on future-smart insulation is paying off with more new product launches and certificates and impressive progress in operational excellence.

We have achieved higher market shares in Insulation Boards and Insulated Panels and revenue has grown in all key geographies such as Benelux, United Kingdom, France, Germany, and the United States.

We intend to continue the execution of our strategic growth plan with a combination of M&A and organic growth, backed by substantial headroom on our balance sheet.

Besides the acquisition of Rex Panels, we continue the execution of our Insulated Panels growth strategy by greenfielding a major EUR 50 million production facility in North America for startup in Q4 2026.

Our Insulation Boards R&D group has optimized its proprietary circular PU technology, and we are building a EUR 13 million industry-leading recycling plant in Wevelgem with substantial impact on our scope 3 emissions.”

OUTLOOK

We are confident in our strong medium- and long-term organic growth potential. 

Recticel is growing through product innovation and operational excellence, and expects to benefit from substantial pent-up demand for energy-efficient solutions in the construction sector.

As for the start of 2025, our order books are solid and we anticipate continued growth throughout the year with an increasing number of geographies showing signs of cyclical improvement. The development of pricing will be key to our margins. 

Given the low visibility on timing and magnitude of the construction market recovery, at this stage, Recticel does not provide a quantitative outlook for the year at this stage.

1      Consolidated Group results – key figures

in million EUR

A change in the scope of consolidation took place in 2024: the acquisition of REX Panels & Profiles SA (100%) on 10 January 2024.

¹        REX Panels & Profiles (Insulated Panels) is fully consolidated as of 10 January 2024.

²        As announced in the press release of 14 June 2023, the Engineered Foams activities have been fully divested and accounted for as Discontinued Operations (IFRS 5).

³        Income from other associates = income from associates not considered as being part of the Group’s core business are not integrated in Operating profit (loss); i.e. TEMDA2 (Ascorium, formerly Automotive Interiors).

Sales: fromEUR 529.4 million in 2023 to EUR 610.2 million^[3] in 2024.

in million EUR

Q4 2024 sales increased by 18.3% from EUR 131.0 million to EUR 155.0 million¹, including  +0.3% currency effect, of which an organic growth of 6.7%.

FY 2024 sales increased by 15.3% from EUR 529.4 million to EUR 610.2 million¹, including +0.7% currency effect, of which an organic growth of 4.5%.

Adjusted EBITDA: from EUR 39.2 million in 2023 to EUR 49.6 million¹ in 2024.

Adjusted EBITDA margin on sales increased from 7.4% to 8.1%.

in million EUR

Adjusted operating profit (loss): from EUR 15.9 million in 2023 to EUR 18.9 million¹in 2024.

Adjusted operating profit (loss) margin on sales slightly increased from 3.0% to 3.1%.

in million EUR

Adjustments to Operating profit (loss) on continuing operations in 2024 amount to EUR -7.4 million and include:

•        EUR -7.9 million of restructuring costs as a result of right-sizing the company structure;

•        EUR +0.9 million of other adjustments: M&A related transaction costs offset by a release of the Ascorium insurance provision and IT provision (EUR 1.2 million);

•        EUR -0.4 million impairment on intangible and tangible fixed assets.

Adjustments to Operating profit (loss) on continuing operations in 2023 amount to EUR -3.3 million and include:

•        EUR -3.1 million of restructuring costs;

•        EUR  0.1 million of other adjustments: mainly M&A related transaction costs offset by partial release of the Ascorium insurance provision (EUR 1.0 million);

•        EUR -0.3 million impairment on intangible and tangible fixed assets.

EBITDA: from EUR 36.1 million in 2023 to EUR 42.6 million¹ in 2024. EBITDA margin on sales slightly increased from 6.8% to 7.0%.

Operating profit (loss): from EUR 12.6 million in 2023 to EUR 11.5 million¹ in 2024. Operating profit (loss) margin on sales decreased from 2.4% to 1.9%.

Financial result: from EUR -4.1 million in 2023 to EUR +3.4 million¹ in 2024.

Interest charges decreased from EUR -7.8 million in 2023 to EUR -2.0 million¹ in 2024 following the proceeds from the divestment of Engineered Foams to Carpenter Co.  Consequently the interest income has increased due to the cash position from EUR +3.9 million in 2023 to EUR +4.3 million¹ in 2024.

Other net financial income and expenses: from EUR -0.2 million in 2023 to EUR +1.1 million¹ in 2024.

Income and impairment from other associates: from EUR -9.5 million in 2023 to EUR 0 million² in 2024. 

Income and deferred taxes: from EUR -8.0 million in 2023 to EUR +1.5 million¹ in 2024.

•        Current income tax: from EUR -4.5 million in 2023 to EUR -5.9 million1 in 2024; current tax charges increase in line with the higher results.

•        Deferred tax: from EUR -3.5 million in 2023 to EUR +7.4 million1 in 2024. 2024 includes a one-time positive effect of EUR +7.2 million related to better future operational result expectations in Belgium.

Result of the period of continuing operations: from EUR -9.0 million in 2023 to EUR 16.3 million¹ in 2024.

¹        REX Panels & Profiles (Insulated Panels) is fully consolidated as of 10 January 2024.

²        Income from other associates = income from associates not considered as being part of the Group’s core business are not integrated in Operating profit (loss); i.e. TEMDA2 (Ascorium, formerly Automotive Interiors).

Result from discontinued operations: from EUR 12.2 million in 2023 to EUR 1.6 million^[4] in 2024.

The result from discontinued operations in 2024 mainly represents the net capital gain as a result of the final agreement and settlement of the Completion Accounts on 5 July 2024 on the disposal of the Engineered Foams activities sold to Carpenter Co. amounting to EUR +2.0 million and composed of the following items:

•       gain on the divestment of Engineered Foams: EUR +2.3 million; 

•       direct attributable transaction costs: EUR -0.3 million;

•       direct attributable costs to discontinued operations: EUR -0.4 million.

The result from discontinued operations in 2023 mainly represents:

(ii)     the result until 12 June 2023 of the Engineered Foams activities sold to Carpenter Co.  (EUR -0.5 million);

(iii)    the net capital gain on the disposal of the Engineered Foams activities sold to Carpenter Co.

amounting to EUR +10.7 million and composed of the following items:

•       gain on the divestment of Engineered Foams: EUR +32.2 million (including EUR 22.3 million provisions on transactions related tax exposures and indemnities;

•       direct attributable transaction costs: EUR -6.8 million;

•       Cumulative Translation Adjustment release in the income statement: EUR -7.5 million;

•       positive result H1 2023 Orsa Foam (EUR +0.5 million) + impairment (EUR -6.9 million) + related costs (EUR -0.8 million). 

(iv)   the result of the Aquinos closing account settlement (including the release of the closing accounts provision and the interest on the Aquinos receivable (EUR +2.0 million)).

Consolidated result of the period (share of the Group): from EUR 3.3 million in 2023 to EUR 18.1 million¹ in 2024.

2       Financial position

in million EUR

3     Non-adjusting subsequent event

On 27 January 2025 Recticel announced the closure of its thermo-acoustic boards plant in Angers, France, by the end of H1 2025.  

4      Sustainability³

Despite challenging market conditions, Recticel has grown organically, while our scope 1 & 2 carbon intensity per m³ decreased by 24.2%. The scope 3 carbon intensity per m³ declined by 7.9%, highlighting successful collaborations with suppliers to reduce upstream emissions. These milestones reaffirm our commitment to achieving our SBTi-approved net-zero targets.

Leading ESG rating agencies have also recognised our progress. Recticel earned an A score from CDP, a low-risk rating from Morningstar Sustainalytics, and a place on the Euronext BEL^® ESG index, which clearly indicates that our sustainability strategy is delivering results. Transparent reporting and measurable goals are key to building trust with stakeholders who prioritise responsible business practices.

Innovation plays a crucial role in our sustainability journey. We continue introducing lower-carbon products and systems, while our EUR 13 million investment in a recycling plant paves the way for circular insulation.

¹        Including REX Panels & Profiles, acquired in January 2024.

²        Greenhouse Gas Protocol category 3.15 Investment, is not included in scope 3 Greenhouse gas and carbon intensity indicators.

³        The sustainability data reported in the press release have not been reviewed by the statutory auditor.

5      Proposed dividend

The Board of Directors will propose to the Annual General Meeting of 27 May 2025 the payment of a stable gross dividend of EUR 0.31 per share on 56,605,920 shares. This represents a total dividend  pay-out of EUR 17.5 million (2023: respectively EUR 0.31 per share and EUR 17.4 million in total).

°  °  °

6      Appendices

All figures and tables contained in these annexes have been compiled in accordance with the IFRS accounting and valuation principles, as adopted within the European Union. The applied valuation principles, as published in the latest annual report at 31 December 2023, were applied for the figures included in this press release.

The analysis of the risk management is described in the annual report and the IAS 34 Interim report per 30 June 2024, both which are available fromwww.recticel.com.

STATUTORY AUDITOR’S NOTE ON THE CONSOLIDATED FINANCIAL INFORMATION

THE YEAR ENDED 31 DECEMBER 2024

The statutory auditor, PwC Bedrijfsrevisoren BV / Reviseurs d’Entreprises SRL, represented by Wouter Coppens*, has confirmed that the audit, which is substantially complete, has not to date revealed any material misstatement in the draft consolidated accounts, and that the accounting data reported in the press release is consistent, in all material respects, with the draft accounts from which it has been derived.

The sustainability data reported in the press release has not been reviewed by the statutory auditor.

Diegem, 3 March 2025

The statutory auditor

PwC Bedrijfsrevisoren BV/Reviseurs d'Entreprises SRL

Represented by

Wouter Coppens*

Bedrijfsrevisor/Réviseur d’entreprises

* Acting on behalf of Wouter Coppens BV                                                                  

6.1 Consolidated income statement

                                                                                                                                                                           in thousand EUR      

³

³

²

²        As announced in the press release of 14 June 2023, the Engineered Foams activities have been fully divested and accounted for as Discontinued Operations (IFRS 5).

³        Income from other associates = income from associates not considered as being part of the Group’s core business are not integrated in Operating profit (loss); i.e. TEMDA2 (Ascorium, formerly Automotive Interiors).

6.2 Earnings per share

6.4 Consolidated statement of financial position

6.5 Consolidated statement of cash flow

6.6 Consolidated statement of changes in shareholders’ equity for year ending 31 December 2024

in thousand EUR

6.7 Reconciliation with alternative performance measures

6.8 Glossary

IFRS MEASURES

Consolidated (data): financial data following the application of IFRS 11, whereby joint ventures and associates are integrated on the basis of the equity method.

ALTERNATIVE PERFORMANCE MEASURES

In addition, the Group uses alternative performance measures (Alternative Performance Measures or "APM") to express its underlying performance and to help the reader to better understand the results. APM are not defined performance indicators by IFRS. The Group does not present APM as an alternative to financial measures determined in accordance with IFRS and does not give more emphasis to APM than the defined IFRS financial measures.

Adjusted EBITDA: EBITDA before Adjustments (to Operating Profit).

Adjusted operating profit (loss): Operating profit (loss) + adjustments to operating profit (loss).                      

Adjustments to Operating profit (loss) include operating revenues, expenses and provisions that pertain to restructuring programmes (redundancy payments, closure & clean-up costs, relocation costs,...), reorganisation charges and onerous contracts, impairments on assets ((in)tangible assets and goodwill), revaluation gains or losses on investment property, gains or losses on divestments of non-operational investment property, and on the liquidation of investments in affiliated companies, revenues or charges due to important (inter)national legal issues and costs of advisory fees incurred in relation to acquisitions or business combination projects, costs of advisory fees incurred in relation to acquisitions, divestments or business combination projects, including fees incurred in connection with their financing and reversals of inventory step up values resulting from purchase price allocations under IFRS 3 Business Combinations.

Current ratio: Current assets / Current liabilities.

EBITDA: Operating profit (loss) + depreciation, amortisation and impairment on assets; all of continued activities.

Gearing: Net financial debt / Total equity.

Income from associates: Income considered as being part of the Group’s core business are integrated in Operating profit (loss).

Income from other associates: Income from associates not considered as being part of the Group’s core business are not integrated in Operating profit (loss).

Leverage: Net financial debt / EBITDA (last 12 months).

Margin: EBITDA margin, Adjusted EBITDA margin, Operating Profit (loss) margin and Adjusted operating profit (loss) margin are expressed as a % on Sales 

Net free cash-flow: Sum of the (i) Net cash flow after tax from operating activities, (ii) the Net cash flow from investing activities, (iii) the Interest paid on financial liabilities and (iv) reimbursement of lease liabilities; as shown in the consolidated cash flow statement.

Net financial debt: Interest bearing financial liabilities and lease liabilities at more than one year + interest bearing financial liabilities and lease liabilities within maximum one year + accrued interests – cash and cash equivalents + Net marked-to-market value position of hedging derivative instruments. The interest-bearing borrowings do not include the drawn amounts under non-recourse factoring/forfeiting programs.

Net working capital: Inventories and contracts in progress + Trade receivables + Other receivables + Income tax receivables – Trade payables – Income tax payables – Other amounts payable

Operating profit (loss): Profit before income from other associates, fair value adjustments of option structures, earnings of discontinued activities, interests and taxes. Operating profit (loss) comprises income from associates of continued activities.

Total net financial debt: Net financial debt + the drawn amounts under off-balance sheet non-recourse factoring programs.

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 Group with a strong presence in Europe and the USA. It offers smart insulation solutions that advance a carbon-free economy and a better quality of life.  

Recticel delivers upon a portfolio of Insulation Boards, Insulated Panels and Acoustic Solutions.

Recticel Insulation designs polyurethane thermal and thermo-acoustic boards for optimal building comfort and energy efficiency. This includes vacuum insulation panels (VIP) by Turvac.

Trimo enables the highest aesthetic standards and extends architectural capabilities with its mineral wool insulated panels and modular space solution, primarily in non-residential applications. With the recent acquisition of  REX Panels & Profiles, the portfolio now includes PIR insulated panels.

Soundcoat provides acoustic solutions used in some of the world’s leading technological innovations.

At the end of 2024, Recticel employed 1,259 people and had achieved sales of EUR 610.2 million. Its operations are spread over seven countries.

The Science Based Targets initiative (SBTi) approved Recticel’s near-term targets for the reduction of  scope 1, 2 & 3 greenhouse gas emissions by 2030 (from base year 2021) and net-zero targets for 2050.

CDP added Recticel to its 2024 A list for Climate Change.

Recticel is listed on Euronext in Brussels (Euronext: RECT - Reuters: RECT.BR - Bloomberg: RECT:BB). Since end 2024 Recticel is included in the Euronext BEL^® ESG Index.

Financial calendar 

Recticel NV/SA

Bourgetlaan 42 avenue du Bourget

1130 Brussels

Belgium

This press release is available in English and Dutch on www.recticel.com.