BERGAMO, Italy — July 5, 2016 — RadiciGroup, a historic Italian industrial enterprise with 2,985 employees and a global production and sales presence — Europe (Italy, France, Germany, Czech Republic, Romania, the United Kingdom, Spain, Switzerland and Hungary), North and South America (the United States, Mexico, Argentina and Brazil), Asia (China and India) — in 2015 recorded consolidated sales revenue of EUR 1,011 million, slightly less (dropping 1.37 percent) than in 2014. Sales volume increased (up 3 percent over 2014), as did gross operating margin, which was EUR 103 million (up 37 percent compared to 2014). Group financial and capital soundness also showed further improvement: debt decreased to EUR 183 million (against EUR 231 million in 2014). First half 2016 was positive and saw RadiciGroup attain a gross operating margin of EUR 60 million.
For the year 2015, RadiciGroup’s three business areas reported consolidated sales, as follows:
- Specialty Chemicals (polyamide polymers and chemical intermediates) – EUR 370 million
- Performance Plastics (polyamide engineering plastics) – EUR 277 million
- Synthetic Fibers & Nonwovens (polyamide and polyester synthetic fibres and spunbond nonwovens) – EUR 458 million.
“Our 2015 income statement results were good,” Angelo Radici, president of RadiciGroup, commented. “We closed the year with total sales revenue slightly lower than in 2014, which was basically due to the decrease in raw materials costs. However, our gross operating margin and volume rose by 37% and 3%, respectively. Italy and the rest of Europe continued to be our main target markets. Indeed, these geographical areas contributed 73% of our sales revenue. Good performance trends were recorded, first of all, in the automotive industry and also in electrical / electronics, furnishings and apparel, which are among our key outlet markets. Our Performance Plastics business area performed particularly well in terms of both volumes and margins and achieved an upturn in 2015 sales revenue of about 9% compared to the prior financial year. After the acquisition of the polyamide engineering polymers division of Resinas TB in Mexico, the business area’s global organization and potential has led us to consider a possible further expansion.”
“Despite problems upstream during the first few months of 2016, our margins for the first half are positive,” Mr. Radici continued. “We achieved a gross operating margin of about EUR 60 million, exceeding our expectations. Given the uncertainty of the current international scenario, forecasting is hard, but we expect to close the year with margins in line with those of 2015.”
The Group’s financial soundness continues to improve. “In 2015, net financial debt ended the year at EUR 183 million, of which over 60% was medium-long term,” Alessandro Manzoni, CFO of RadiciGroup, noted. “The debt to equity ratio was 0.50. Our steps to strengthen capital over the past few years reduced debt by EUR 153 million from 2010 to 2015, allowing us to gradually achieve an increasingly sounder position. That course of action required substantial effort and during that period the backing of our banks was essential. Their support and our mutual trust during the years enabled us to work with peace of mind on the industrial management of our Group.”
In 2016 RadiciGroup investments: EUR 40 million (in 2015 investments amounted to EUR 30 million).
RadiciGroup Results: 2015 Sales Revenue EUR 1,011 Million. 2016 First Half Positive
For a long time now, the Group has taken action to translate sustainability into the precise systemic measurement of environmental, economic and social indicators, according to the GRI guidelines. During 2015, RadiciGroup’s product development strategy continued on three fronts: biopolymers, post-industrial and post-consumer recycling, and ecodesign of products obtained from traditional sources. The Group also maintained its constant commitment to measure the environmental impact of its products and provide the market and all its stakeholders with information based on scientific, verified and comparable data. This achievement was made possible by the development and definition of Product Category Rules (PCRs) for its production chain, which specify how to measure and quantify the environmental impact performance of its products using Life Cycle Assessments (LCAs), in order to obtain specific Environmental Product Declarations (EPDs).
As of today, RADICIGROUP has published an EPDfor the HERAMID® range of post-industrial PA6 and PA6.6 engineering plastics, an EPD for the polyamide scrap recovery service (solely used for the production of HERAMID®), an EPD for the RADILON® S and RADILON® A lines, PA6 and PA6.6 engineering plastics, and an EPD for Radifloor® PA6 and PA6.6 BCF yarn. Moreover, RadiciGroup, through its chemical company Radici Chimica SpA, has experimented with a new method of calculating the Product Environmental Footprint (PEF) and the Organisation Environmental Footprint (OEF) introduced by the European Commission. Radici Novacips SpA, on the other hand, has experimented with the preparation of a PEF in conjunction with its EPDs and in compliance with specific rules for product environmental labelling. Furthermore, Radici Novacips SpA’s system for issuing and managing their EPDs have been certified.
Some 2015 sustainability performance figures … The energy mix of RadiciGroup companies is continually improving. In 2015 the percentage of electricity from renewable sources (mainly hydroelectric energy) used by the Group was 48.5% (compared to 45.3% in 2014), with 7 production sites 100% powered by renewable energy. In the three-year period 2013-2015, total primary energy consumption from fossil sources per ton of product decreased by about 19% and, in the period 2011-2015, the amount of direct and indirect greenhouse gas emissions was reduced by 48.3%. The quality of water discharged also improved (in the period 2013- 2015, chemical oxygen demand [COD] dropped by about 55%). All the data will be available shortly in the 2015 RadiciGroup Sustainability Report.
Posted July 5, 2016