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RadiciGroup income rises by over 60%

The Group recorded consolidated sales revenue of EUR 1,147 million, a 20% increase over the prior financial year.

5th July 2018

Innovation in Textiles
 |  Bergamo

Interiors, Clothing/​Footwear, Sports/​Outdoor

From left: Paolo, Angelo and Maurizio Radici, shareholders of RadiciGroup. © RadiciGroupRadiciGroup 2017 sales significantly exceeded EUR 1 billion in 2017. Group net income rose by over 60% compared to 2016, driven by an increase in sales volume, while Group EBITDA was EUR 160 million – a 45% increase. The Group – with over 3,000 employees, companies in 16 countries and 33 sales and production units engaged in chemicals, plastics and synthetic fibres – recorded consolidated sales revenue of EUR 1,147 million, a 20% increase over the prior financial year.

“Our competitive system operates with respect for people and the environment,” said Angelo Radici, president of RadiciGroup. “The financial statement figures show that our Group is sound and in excellent financial condition, in spite of the high levels of uncertainty that characterize some of the widely diverse scenarios in which the Group operates.”

RadiciGroup’s strategy continues to focus on its strategic core business activities – nylon chemicals, engineering plastics and synthetic fibres – with the goal of improving its competitive position in the market and achieving an overall balance among the geographical areas where the Group operates, in order to reduce dependency on single markets and boost cash flow to reduce debt and finance new initiatives in crucial markets.

“Our 2017 results are very positive and show higher Group growth compared to 2016, which has strengthened our balance sheet,” stressed Alessandro Manzoni, CFO of the Group. “We are also very pleased with the results of the first half of 2018, which rose compared to the same period of 2017. However, in the second half of the year, we are in a more cautious position due to the new climate of political uncertainty, which, naturally, has an impact on markets, as well. The Group’s financial position is extremely solid.”

Synthetic Fibres and Nonwovens

The Synthetic Fibres and Nonwovens Business Area produces numerous kinds of products, from polyester yarn to nylon yarn, artificial grass yarn and nonwovens, materials used in a variety of industries, among which automotive, apparel and furnishings. The global sales revenue of this business area went from EUR 412 million in 2016 to EUR 451 million in 2017, an increase of over 9%.

The geographical breakdown of the 2017 sales of the various products of the Comfort Fibres business line – engaged in the production of nylon and polyester – shows the prevalence of the Italian and European markets over the rest of the world. 2017 sales revenue was greater overall than in 2016, and significant increases were recorded in both sales value and volume.

The Synthetic Fibres and Nonwovens Business Area produces numerous kinds of products, from polyester yarn to nylon yarn, artificial grass yarn and nonwovens. © RadiciGroup

In 2017, the Performance Yarn Business Area – engaged in the manufacture, processing and sale of polyamide 6 and 6.6 yarn used mostly for textile flooring – confirmed its leadership position in the automotive sector thanks to polyamide 6 solution-dyed yarn used for vehicle floor carpeting in the premium and SUV segments. The high-tenacity polyamide 6.6 yarn sector was still another market that benefited from this favourable period in the automotive industry.

As regards BCF yarn for household and commercial textile flooring, 2017 sales were in line with forecasts and stable compared to 2016. Regarding the Extrusion Yarn Business Area, in financial year 2017, Tessiture Pietro Radici reported gross sales revenue basically consistent with the prior financial year.

Specialty chemicals

The results of the Specialty Chemicals Business Area showed a positive trend in sales compared to 2016 in terms of both volumes and average prices for the two main product areas: polymers and adipic acid. Sales revenue increased by 35% compared to 2016, aided by average sales prices, which followed the main raw materials cost trend, and, most importantly, by high market demand.

The economic trend of the business area during the first quarter of 2018 remained positive. Market demand was at the same level as the prior year; production sites were optimising plant production capacity utilisation and managing to improve on monthly average production against 2017. Sales revenue was on the increase compared to the same period of 2017.

Performance plastics

During financial year 2017, the Performance Plastics Business Area was forced to deal with changing conditions in the raw materials market. Raw materials prices increased considerably in all segments of the business area, although at different rates depending on the country, inevitably resulting in shrinking margins. At the same time, however, sales volume improved.

In June 2017, a new production line was put into operation in Germany: the line was the result of a very significant investment made to meet the constant growth in sales volume in Europe. Another part of the plan to increase production capacity is the installation of two new production lines (one actually replacing an old line) scheduled for 2018 at the site in Villa d’Ogna (Bergamo, Italy).

During the first quarter 2018, RadiciGroup Performance Plastics showed higher growth compared to the same period of the prior year.

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