Recticel (RECT) H1 2024 earnings summary

Executive summary

• Net sales rose 12.2% year-over-year to €298.6 million in H1 2024, with 2.6% organic growth and acceleration from Q1 to Q2.

• Adjusted EBITDA increased 37.9% to €25.1 million, with margin improving to 8.4% from 6.8% in H1 2023.

• Net profit from continuing operations reached €4.5 million, reversing a €10.9 million loss in H1 2023.

• Integration of REX Panels & Profiles and expansion of Belgian and French plants contributed to growth.

• SBTi approved net-zero targets in Q1 2024; focus on climate change mitigation through innovative insulation and acoustic solutions.

Financial highlights

• Gross profit increased 19.0% to €54.1 million, with margin up to 18.1%.

• Adjusted operating profit grew 47.2% to €9.8 million.

• Earnings per share improved to €0.12 from €0.04 year-over-year.

• Net cash position at €58.1 million as of June 30, 2024, down from €161.9 million at year-end due to REX acquisition and working capital needs.

• Net working capital increased to €62.9 million from €23.7 million.

Outlook and guidance

• Adjusted EBITDA for full year 2024 projected around €50 million, up from €39.2 million in FY 2023.

• Continued volume growth expected in H2 2024, though against a strong H2 2023.

• Full compliance with CSRD sustainability reporting expected for fiscal year 2024.