With consolidated sales revenue of €1,211m, up 6% over 2017, and a net income which surged 19% to €97m, 2018 was an exceptional year for RadiciGroup. “The year closed with record-breaking numbers for our Group,” said RadiciGroup president Angelo Radici.
All the signs point to a different outlook for 2019. The slowdown, which had started to make itself felt toward the end of 2018, has materialised in 2019 accompanied by contracting sales volumes. The drop-off, fuelled by the uncertainties caused by the US-China import tariffs battle and by general geopolitical instability and the drop-off has nonetheless not yet affected the margins, according to Radici. “I think I can safely say that we are going to have a first half with stable margins… The second half of the current year is going to be a bit tougher,” he said.
He noted that another factor that was impacting business was the slump in the automotive market. In response, Radici is focussing on research and innovation aimed at widening the product portfolio through the addition of materials with low environmental impact and creating new market by answering the needs of the increasingly environmentally aware companies today.
To that end, the Group is falling back on its core strategic businesses, such as chemicals for nylon production, engineering polymers and synthetic fibres, to improve its competitive position and achieve an overall balance in geographical markets in which it operates, in order to reduce its dependency on single markets.