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Introduction & Market Context
IMCD NV (AMS:IMCD) presented its half-year 2025 results on July 30, showcasing revenue growth amid challenging market conditions that have put pressure on profitability. The specialty chemicals and ingredients distributor reported modest top-line growth while facing headwinds that impacted its bottom line.
The company’s stock has struggled recently, trading at €89.38 after dropping 1.66% following the presentation. This continues a concerning downward trend that has seen IMCD’s shares decline over 25% in the past six months, with the current price hovering near its 52-week low of €86.60.
Half-Year Performance Highlights
IMCD reported revenue of €2,474 million for the first half of 2025, representing a 4% increase (6% on a constant currency basis) compared to €2,385 million in the first half of 2024. Gross profit rose to €634 million, up 5% (7% FX-adjusted) from €607 million in the comparable period.
Operating EBITA increased modestly to €275 million, up 2% (4% FX-adjusted) from €270 million in the first half of 2024. However, net result declined to €130 million, down 8% (7% FX-adjusted) from €141 million in the prior year period.
Free cash flow saw a significant decline of 22%, falling to €173 million compared to €221 million in the first half of 2024. Cash earnings per share decreased to €2.94, down 9% from €3.23 in the comparable period.
Regional Performance
IMCD’s performance varied across its three geographic segments. The Asia-Pacific region showed the strongest results, with gross profit of €150 million (up from €140 million) and operating EBITA of €86 million (up from €82 million), representing an operating EBITA margin of 13.5%.
The Americas segment delivered gross profit of €191 million (up from €180 million) and operating EBITA of €83 million (up from €78 million), with an operating EBITA margin of 10.8%.
The EMEA (Europe, Middle East, and Africa) region showed signs of weakness despite higher gross profit of €293 million (up from €286 million). Operating EBITA declined to €124 million from €129 million, with margin compression to 11.7% from 12.6% in the prior year.
Strategic Acquisitions
Despite market challenges, IMCD continued its acquisition strategy, completing six transactions across its global operations during the first half of 2025. These acquisitions are expected to add approximately €200 million in annualized revenues and bring approximately 120 new employees to the company.
In EMEA, IMCD acquired Tecom and Ferrer in Spain, both focused on food and nutrition. In the Americas, the company signed an agreement to acquire Apus Química in Chile, specializing in advanced materials. In the Asia-Pacific region, IMCD acquired Trichem in India (pharmaceuticals), YCAM in Korea (personal care and pharmaceuticals), and Daoqin in China (food and nutraceuticals). Additionally, the company exercised call options to acquire the remaining 30% of shares in Megasetia (Indonesia) and Sanrise (China).
Strategic Pillars and Sustainability
IMCD highlighted its six strategic pillars driving growth: People, Portfolio, Commercial Excellence, Operational Excellence, Digital Excellence, and Sustainability. The company reported 14 training hours per employee, on track to achieve its goal of 30 hours by 2030, and announced the appointment of a new President for the EMEA region.
Digital transformation remains a priority, with the global rollout of SalesAssistant and planned introduction of cross-sell recommendations in the MyIMCD platform in Q3. The company emphasized the benefits of its unified ERP and CRM systems.
IMCD showcased its sustainability credentials, highlighting its platinum EcoVadis rating and strong performance across multiple ESG frameworks including CDP (B score), Sustainalytics (11.6 low risk rating), and ISS ESG (C+ Prime rating).
Financial Position
The company’s balance sheet showed some concerning trends. Net debt increased to €1,543 million as of June 30, 2025, up from €1,282 million at the end of 2024. The net debt to operating EBITDA ratio rose to 2.6, compared to 2.2 at year-end 2024, though still below the covenant requirement of 4.25.
Working capital increased to €963 million from €907 million, with inventory days at 54 (compared to 55 at year-end 2024 and 48 in mid-2024). Trade receivables stood at 60 days of revenue, up from 57 days at year-end but down from 64 days a year earlier.
Currency exchange results had a significant negative impact on net finance costs, which increased to €44 million from €27 million in the first half of 2024, primarily due to €21 million in currency exchange losses compared to €9 million in the prior year.
Forward-Looking Statements
Looking ahead, IMCD’s management expressed cautious optimism while acknowledging macroeconomic uncertainties. CEO Marcus Jordan emphasized the resilience of the company’s asset-light business model under challenging market conditions, while CFO Hans Kooijmans highlighted the importance of continued digital infrastructure development.
The company noted that it operates in fragmented market segments across multiple geographic regions, connecting numerous customers and suppliers across diverse product ranges. While IMCD sees opportunities to expand its global footprint and product portfolio both organically and through acquisitions, it acknowledged that macroeconomic and political uncertainty make future developments difficult to predict.
Business Diversification
IMCD’s business is diversified across eight strategic market segments: Pharmaceuticals, Coatings & Construction, Food & Nutrition, Advanced Materials, Beauty & Personal Care, Industrial Solutions, Lubricants & Energy, and Home Care & Industrial & Institutional Cleaning.
This diversification strategy aims to provide resilience against sector-specific downturns, though the company noted in its earnings call that it is currently experiencing softening demand across industrial segments and ongoing inventory challenges.
Despite the revenue growth highlighted in IMCD’s presentation, the market response has been cautious, reflecting concerns about declining profitability and cash flow. While the company continues to execute its acquisition strategy and emphasize its specialty focus, investors appear to be weighing these positives against the backdrop of challenging market conditions and increasing leverage.
Full presentation:
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