Following the final loss of control1 and the deconsolidation of the former German subgroup entities2 on
- Lead segment:
Recylex S.A.'s used lead-acid battery recycling business Lead segment:Recylex S.A.'s used lead-acid battery recycling business (Villefranche-sur-Saône and Escaudoeuvres plants), - Plastics segment: C2P S.A.S.'s polypropylene waste recycling business,
- Other activities:
Recylex S.A.'s holding activities, including the equity method accounting for the 50% stake inRecytech S.A.
The consolidated sales published at
In millions of euros | At | At | Comparable basis as at | Change on a reported basis (%) | Change on a comparable basis (%) |
Lead | 59.8 | 85.9 | 35.7 | -30% | 68% |
Zinc | - | 20.6 | - | -100% | n/a |
Special Metals | - | 5.5 | - | -100% | n/a |
Plastic | 7.4 | 5.9 | 5.9 | 25% | 25% |
Other activities | 0.2 | - | 0.6 | n/a | n/a |
Total | 67.4 | 118.1* | 42.3* | -43% | 59% |
IFRS data, unaudited figures. n/a: not applicable
*Rounding effect
1. Trend in metal prices at
In euros per ton | First nine months of 2021 average | First nine months of 2020 average | Change (%) |
Lead price | 1,808 | 1,600 | +13% |
€/$ exchange rate | 1.1967 | 1.1249 | +6% |
Source:
The average lead price for the first nine months of 2021 was €1,808, up +13% compared to the average for the same period in 2020.
Expressed in dollars, the average lead price for the first nine months of 2021 was
The average €/$ exchange rate at
2. Breakdown of consolidated sales at
Consolidated sales at
2.1 Lead segment
The Lead segment accounted for 89% of consolidated sales at
Consolidated sales for the period ended in
In the first nine months of 2021,
- A first half of 2020 heavily impacted by the effects of the SARS-CoV-2 health crisis, which had led the Nordenham smelter (then operated by the former Group subsidiary -
Weser-Metall GmbH ) and the battery recycling sites to shut down their operations3 , which weighed heavily on the volumes of used lead-acid batteries recycled byRecylex S.A. ; - Sustained activity in the second and third quarters of 2021, with higher volumes of secondary materials sold than those observed in the second and third quarters of 2020. Lead segment sales for the third quarter of 2021 amounted to €23.0 million, compared with €13.9 million for the third quarter of 2020.
In addition, the sharp rise in lead prices over the first nine months of 2021 has supplemented the growth in sales from volumes recycled and sold.
As of the end of
Despite the efforts made over the past two years,
2.2 Plastics segment
The Plastics segment accounted for 11% of consolidated sales at
Consolidated sales totalled €7.4 million in the nine months ended in
While the beginning of 2021 was marked by a favourable context for the recycled raw materials industry due to the increase in virgin polypropylene prices, the recycled polypropylene business suffered, in the second and third quarters of 2021, from the slowdown observed in the automotive market, the latter being mainly impacted by the shortage of components currently affecting the sector.
As a result, the Plastics segment's sales for the third quarter of 2021 amounted to €2.3 million, a level comparable to that observed in the third quarter of 2020 amounting to €2.1 million.
3. Update on the restructuring of
At
- The €16 million loan (€17.9 million including capitalized interest) granted by
Glencore International AG toRecylex S.A. in 2014.Recylex S.A. benefits from a temporary and conditional waiver ofGlencore International AG's right to declare the loan immediately due and payable untilJanuary 31, 2022 at the latest5; - The debt related to the
European Commission's fine for an amount of €25.3 million, including interest on suspended maturities. InSeptember 2020 , the Company temporarily suspended payment of the fine and entered into discussions with theEuropean Commission . Outstanding maturities amount to €1.8 million atSeptember 30, 2021 ; - The claw back clause under the 2005-2015 continuation plan for an amount of €4.1 million6. The amounts due under this debt amount to €2.6 million at
September 30, 2021 , withGlencore International AG as the main creditor for an amount of €2.5 million.Recylex S.A. has obtained fromGlencore International AG a conditional waiver untilJanuary 31, 2022 of its right to declare this debt immediately due and payable on the same terms as the temporary waiver of its right to declare the €16 million loan due and payable, as mentioned above; - The rescheduled debt to
Glencore International AG due in 2026, arising from theRecylex S.A. continuation plan for an amount of €5.1 million.
In addition, the Company's net financial debt will be potentially impacted and aggravated by the decision of the
At
As a reminder,
Several months ago,
Following discussions with the Group’s main creditors, namely
The progress of these various ongoing processes highlights the following aspects:
- If a sale of the 50% stake in
Recytech S.A. were to take place, the proceeds of the sale would be fully absorbed by the commitments given byRecylex S.A. toGlencore International AG under the first and second-rank pledges ofRecytech S.A. shares. The amount of the commitments amounts to €60.7 million atSeptember 30, 2021 9. Therefore, without significant debt waivers, the issue of restructuring the debt of the other creditors would remain unresolved. Recylex S.A. has received expressions of interest from several players operating in businesses related to the recycling of used lead-acid batteries and polypropylene. The Company is pursuing discussions with these interested parties as part of a competitive and structured disposal process, with a view to a partial or total takeover of the recycling business. Nevertheless, in view of the level of indicative offers already received to date, it is clear that most of the existing debt will have to be waived by the creditors in very significant amounts.- In addition to restructuring its debt,
Recylex S.A. has also initiated a process to sell the Estaque site, which has been the subject of an environmental rehabilitation program for several years. In view of the indicative offers received to date, a possible sale of the site would not allow the Group to participate in the repayment of its debts in view of the amount of the remaining rehabilitation costs to be borne.
The success of the debt restructuring depends on the outcome of the planned asset disposals, as well as on the willingness of creditors to accept significant debt waivers, and therefore remains highly uncertain. As a reminder, and for this reason, the company is not in a position to close its half-year financial statements for 2021 and to publish its half-year financial report as of
Thomas Hüser, Chairman of the Board of Directors of
4. Forecasted financial agenda
- Financial information at
December 31, 2021 :Thursday, February 10, 2022 (after market closing).
1 See press releases from
2 Namely:
Germany
3 See press release of
4 See press releases of
2020.
5 The maturity of this waiver may, however, be shortened by
the waiver granted, namely the continued supply of
completion of the restructuring process for
6 The nominal amount of the financial recovery clause is €19.2 million, of which €17.8 million is due to
7 See press release of
8 See press release of July 29, 2021.
9 See Note 30 of the notes to the consolidated financial statements at
10 See press release dated
APPENDICES
Quarterly evolution of metal prices averages
In euros per ton | First quarter 2021 | Second quarter 2021 | Third quarter 2021 | First quarter 2020 | Second quarter 2020 | Third quarter 2020 |
Lead | 1,674 | 1,765 | 1,985 | 1,675 | 1,518 | 1,603 |
Source:
Consolidated sales by quarter and segment
In million of euros | First quarter 2021 | Second quarter 2021 | Third quarter 2021 | First quarter 2020 | Second quarter 2020 | Third quarter 2020 |
Lead | 14.4 | 22.4 | 23.0 | 54.0 | 18.1 | 13.9 |
Zinc | 0.0 | 0.0 | 0.0 | 16.7 | 4.0 | 0.0 |
Special Metals | 0.0 | 0.0 | 0.0 | 4.3 | 1.2 | 0.0 |
Plastics | 2.9 | 2.3 | 2.3 | 2.9 | 0.8 | 2.2 |
Other activities | 0.1 | 0.0 | 0.0 | - | - | - |
Total | 17.4 | 24.7 | 25.4 | 77.9 | 24.1 | 16.1 |
IFRS data, unaudited figures.
In million of euros | Nine months to | Nine months to | Change (%) |
Lead segment | 61.6 | 36.8 | +67% |
Services to Group companies | 0.4 | 0.8 | -43% |
Chiffre d’affaires total | 62.1 | 37.6 | +65% |
IFRS data, unaudited figures.
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Disclaimer: This press release is a non-official translation into English of the press release of the same date issued in French language and is provided solely for the convenience of English-speaking users. This press release should be read in conjunction with and construed in accordance with French law. Disclaimer: This press release may contain forward-looking statements that constitute either trends or objectives and should not be construed as forecasts of results or any other performance indicator. This information is by its nature subject to risks and uncertainties, as described in the Company's Annual Report available on its website (www.recylex.fr). More detailed information on
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Raw materials from urban mines
For more information about the
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Press & Investor contact: T +33 (0)158 47 29 91 | E info@recylex.eu
Administrative office: 79 rue
Attachment
Recylex S.A. Financial information atSeptember 30 2021 and update on the restructuring ofRecylex S.A. 's debt
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