First quarter 2020 results hold up, but the rest of the year will feel the consequences of pandemic-induced uncertainty and difficulties. Nevertheless, the Group remains cautiously optimistic about long-term prospects, while boosting innovation, sustainability and care for the environment and communities.
RadiciGroup – an Italian multinational with 3,100 employees in 16 countries, engaged in the chemicals, engineering polymers, fibres and nonwovens businesses – closed financial year 2019 with consolidated sales revenue of EUR 1,092 million and EBITDA of EUR 165 million.
The results obtained were in line with the budgeted figures and were attained through the strategy of focusing on those Group businesses that were strategic, synergistic and of interest in the medium term. The goal of the Group’s approach was to improve its competitive position and achieve an overall balance among the geographical areas where it operates in order to reduce dependency on single markets and increase cash flow to finance new initiatives in its strategic businesses.
Crucial to maintaining the Group’s competitiveness and development in 2019 was the decision to continue allocating sizeable investments – totalling over EUR 45 million – to the constant technological upgrading of plant and equipment, as well as to business sustainability. In particular, EUR 7.6 million was earmarked for implementing Best Available Techniques, enhancing energy efficiency, emission abatement and R&D activities aimed at adding to low environmental impact processes and products. The investments made in 2019 to further RadiciGroup growth brought the total amount allocated during the 2015-2019 five-year period to EUR 216 million.
On the acquisitions front, in the first few days of 2020, the purchase of Radici Plastics France SA shares was completed, thus giving RadiciGroup a majority interest in the French company engaged in the sale of engineering polymers. The Group also acquired Zeta Polimeri Srl, an Italian company specializing in the recovery of synthetic fibres and thermoplastics.
“We are pleased with how the Group closed the year 2019,” said Angelo Radici, president of RadiciGroup. “The figures confirm out market competitiveness. Our attention will now be focused on the evolution of the global scenario and the inevitable impact of the COVID-19 health crisis, which has plagued the whole world since the beginning the year. Despite the fact that our figures held up during the first quarter of 2020, for the second and following quarters we expect a general downturn, although, as of today, it is impossible to forecast with any certainty what the actual effects of the pandemic on the world economy will be. However, we are confident and believe that our Group has put into place all the strategies needed to handle the emergency situation, thanks to our solid equity and financial position, geographical diversification and efficient production organization, in addition to our great research and development efforts.”