Belgium-based international polyurethane foam manufacturer Recticel SA has reported a growth in sales, offsetting negative currency impacts.
According its latest trading update for Q1 2017, total sales rose by 5.7% to€365.3m from €345.5m in the first quarter of 2016, with all segments reporting a rise in sales except its Bedding sector.
During the period, the group indicated that it had increased its prices due to the fast rise in raw material costs and stated that its commercial teams are ‘focusing on minimising the impact’ of these increases.
Within its sectors, the Flexible Foam division saw sales rise by 2.9% to €160.6m, with Central & Eastern Europe delivering strong growth. However, its foam sub-segment Comfort suffered a slight decline due to ‘subdued market conditions’.
Its Bedding division saw sales fall by 5% to €75m, largely due to its non-branded sales falling 8.1% to €25.6m, attributable to weaker market conditions combined with supply chain issues.
Total combined debt, including off-balance non-recourse factoring, increased to €194.2m, linked to seasonal working capital build-up.
Find out who has a vast distrubtion network covering Ireland and the UK
Looking ahead, the group said it expects combined sales to increase in 2017 despite the increasing price of raw material costs.
Olivier Chapelle, CEO, said: “We are satisfied with the sales growth that we have generated during the first quarter of 2017, in markets which have overall remained supportive. Volume growth and price increases have more than offset the negative currency impacts.
“The main business challenge that Recticel is currently facing relates to the unprecedented pace of raw material price increases.”