Following the definitive loss of control1 and the deconsolidation of the former German subgroup entities2 on
- Lead segment:
Recylex S.A.'s used lead-acid battery recycling activities (Villefranche-sur-Saône and Escaudoeuvres plants); - Plastic segment: C2P S.A.S.'s polypropylene waste recycling activity;
- 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 | 36.8 | 72.1 | 21.8 | -49% | 69% |
Zinc | 0.0 | 20.6 | 0.0 | -100% | n/a |
Special metals | 0.0 | 5.5 | 0.0 | -100% | n/a |
Plastic | 5.1 | 3.8 | 3.8 | 36% | 36% |
Other activities | 0.1 | - | 0.6 | n/a | n/a |
Total | 42.1* | 102.0 | 26.3* | -59% | 60% |
IFRS data, unaudited figures. n/a : not applicable
*Rounding effect.
1. Trend in metal prices at
In euros per tonne | First half 2021 average | First half 2020 average | Change (%) |
Lead price | 1,719 | 1,598 | +8% |
€/$ exchange rate | 1.2052 | 1.1022 | +10% |
Source:
The average lead price in the first half of 2021 was €1,719, up +8% compared to the average for the first half of 2020.
Expressed in dollars, the average lead price for the first half 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 87% of consolidated sales at
Consolidated sales reached €36.8 million at
During the first half of 2021,
- A first half of 2020 heavily impacted by the effects of the SARS-CoV-2 health crisis, which had led
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 quarter of 2021, with higher volumes of secondary materials sold than in the first quarter of 2021. Lead segment sales in the second quarter of 2021 amounted to €22.4 million, compared with €14.4 million in the first quarter of 2021.
In addition, the rise in lead prices in the first half of 2021 supplemented the growth in sales from volumes recycled and sold.
At
As the recycling process for used batteries at the two French sites was originally designed as an integral part of the secondary materials recovery chain by the former subsidiary
2.2 Plastic segment
The Plastic segment accounted for 12% of consolidated sales at
Consolidated sales reached €5.1 million at
While the beginning of 2021 was marked by a favourable context for the recycled raw materials industry due to the increase in the price of virgin polypropylene, activity showed some signs of slowing down in the second quarter of 2021 due to the shortage of components, which led many manufacturers to make trade-offs, with a downward impact on the volumes requested from the entire plastics industry.
As a result, the Plastic segment's sales for the second quarter of 2021 amounted to €2.3 million, compared to the first quarter of 2021 with sales amounting to €2.9 million.
3. Update on the restructuring of
At
- The €16 million loan (€17.7 million including capitalized interest) from
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 relating to the
European Commission fine of €25.1 million, including interest on suspended maturities. InSeptember 2020 , the Company temporarily suspended the payment of the fine and entered into discussions with theEuropean Commission . Outstanding maturities amount to €1.4 million as ofJune 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
June 30, 2021 , withGlencore International AG as main creditor for an amount of €2.5 million.Recylex S.A. has obtained a conditional waiver fromGlencore International AG untilJanuary 31, 2022 of its right to declare this debt immediately 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 due in 2026 under the
Recylex S.A. continuation plan for an amount of €5.1 million towardsGlencore International AG .
The Company’s net financial debt will be potentially impacted and aggravated by the decision of the
At
As a reminder, as the maturities of the financial debt are not compatible with the Group's future cash flow generation,
In this context, at the end of
At the same time, the Company has also initiated a process to sell the discontinued Estaque site, which has been the subject of an environmental rehabilitation program for several years.
Beyond the result of the asset sales process, the outcome of the debt restructuring process will depend on the willingness of the creditors to grant significant waivers for the remaining debts.
Thomas Hüser, Chairman of the Board of Directors of
4. Forecasted financial agenda
- Financial information as of
September 30, 2021 :Thursday, October 28, 2021 (aftermarket closing).
***
1 See press releases from
2 Namely:
3 See press release of
4 See press releases of
5 The maturity of this waiver may, however, be shortened by
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
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APPENDICES
Quarterly evolution of metal prices averages
In euros per tonne | First quarter 2021 | Second quarter 2021 | First quarter 2020 | Second quarter 2020 |
Lead | 1,674 | 1,765 | 1,675 | 1,518 |
Source:
Consolidated sales by quarter and segment
In millions of euros | First quarter 2021 | Second quarter 2021 | First quarter 2020 Published data | First quarter 2020 Comparable data | Second quarter 2020 Published data | Second quarter 2020 Comparable data |
Lead | 14.4 | 22.4 | 54.0 | 14.7 | 18.1 | 7.2 |
Zinc | 0.0 | 0.0 | 16.7 | 0.0 | 4.0 | 0.0 |
Special Metals | 0.0 | 0.0 | 4.3 | 0.0 | 1.2 | 0.0 |
Plastics | 2.9 | 2.3 | 2.9 | 2.9 | 0.8 | 0.8 |
Other activities | 0.1 | 0.0 | 0.4 | 0.2 | ||
Total | 17.4 | 24.7 | 77.9 | 18.0 | 24.1 | 8.2 |
IFRS data, unaudited figures.
Recylex S.A.’s sales
In millions of euros | Six months to | Six months to | Change (%) |
Lead segment | 37.9 | 22.5 | +68% |
Services to Group companies | 0.36 | 0.74 | -51% |
Total sales | 38.3 | 23.2 | +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
- Financial information at
June 30, 2021 and update on the restructuring ofRecylex S.A. 's debt
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