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Industry Talk

Positive growth for RadiciGroup

Current situation makes medium-to-long-term planning almost impossible, company says.

12th May 2022

Innovation in Textiles
 |  Bergamo, Italy

Industrial, Clothing/​Footwear

RadiciGroup achieved total sales of €1,508 million generated at over 30 production and sales units in Europe, Asia and the Americas in 2021, despite difficulties due to the lingering effects of the pandemic and the steep increase in the cost of raw materials and energy, especially during the latter part of the year.

The group – led by brothers Angelo, Maurizio and Paolo Radici – continued to focus on its core businesses of nylon chemicals, engineering polymers and advanced textile solutions, while at the same time  introducing new products, such as a range of PPE for medical and industrial use.

The company’s EBITDA for the year was €268 million, and net income was €150 million.

“The figures recorded in 2021 were good, but will certainly be very difficult to replicate this year,” said president Angelo Radici. “This year started off with the entire industrial world facing great difficulties, created by the uncertainties related to the precarious international geopolitical situation. This new state of affairs prevents us from forecasting cost trends – energy and gas in particular – which for a company like ours, affect both raw materials and processing costs. We find ourselves dealing with a situation that makes medium- to-long-term planning almost impossible. In this context, the second half of 2022 remains a matter of great concern, especially if the negative variables relating to the war  do not change. Nevertheless, we can always count on our people, who even in such adverse circumstances, have been working with great commitment, flexibility and a spirit of adaptation.”

Despite the situation, RadiciGroup considers it essential to continue making investments.

“In 2021, the group invested €53 million financed from cash flow,” said Alessandro Manzoni, CFO of RadiciGroup. “There was no impact on net financial position, which registered an improvement over 2020, as did all our balance sheet ratios.”

The group has moved forward according to plan with the acquisition of the engineering plastics business of Ester Industries, an India-based company listed on the Bombay Stock Exchange. RadiciGroup’s €35 million investment in this transaction furthers the internationalisation strategy of its high performance polymers business.

“In the Indian market, a strong presence is required to react to growth opportunities in sectors with short and responsive production chains,” said Maurizio Radici, vice president and COO of RadiciGroup. “From the start, the strategy of our high performance polymers business has been based on working locally in the closest proximity to customers, in order to offer not only products but also prompt and efficient service near to their industrial sites. Presently, the compounding business accounts for a third of the group’s total sales and has helped make the Radici name recognised worldwide.” 

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