IMCD Q3 2025 slides reveal mixed results with continued acquisition strategy

Introduction & Market Context

IMCD NV (AMS:IMCD) presented its third-quarter 2025 results on November 6, showing resilience in a challenging macroeconomic environment. The specialty chemicals and ingredients distributor reported modest growth in gross profit while facing headwinds that impacted its bottom line. Following the presentation, IMCD shares declined 1.87% to €88.78, continuing a challenging year that has seen the stock trade significantly below its 52-week high of €157.85.

The company’s presentation highlighted its ongoing expansion through acquisitions while acknowledging the impact of global economic uncertainties on its performance. CEO Marcus Jordan and CFO Hans Kooijmans led the presentation, emphasizing IMCD’s ability to navigate market challenges through its diversified business model.

Quarterly Performance Highlights

IMCD’s financial results for the first nine months of 2025 showed mixed performance. The company achieved gross profit of €927 million, representing a 5% increase on a constant currency basis compared to the same period in 2024. Operating EBITA grew more modestly at 1% on a constant currency basis, reaching €394 million.

As shown in the following key performance metrics:

However, the company’s net result declined to €180 million from €202 million in the previous year, representing a 9% decrease. Earnings per share fell to €3.05 from €3.55, while cash earnings per share decreased to €4.16 from €4.67 in Q3 2024.

The detailed financial figures further illustrate this mixed performance:

Revenue for the first nine months reached €3,676 million, up from €3,584 million in the same period of 2024. Despite this top-line growth, the company faced margin pressure, with operating EBITA margin slightly declining. The workforce continued to expand, with the number of full-time employees increasing to 5,270 from 5,006 a year earlier.

M&A and Growth Strategy

A central element of IMCD’s growth strategy continues to be its active pursuit of acquisitions. During the first nine months of 2025, the company announced six acquisitions across its global operations, adding approximately €340 million in annualized revenues and 185 full-time employees based on the last full year before acquisition.

The company’s acquisition strategy spans multiple regions and business segments, as detailed in the following slide:

In Europe, Middle East, and Africa (EMEA), IMCD acquired Tecom and Ferrer in Spain, both focused on food and nutrition, and signed an agreement to acquire Tillmans in Italy, which operates in coatings & construction, food & nutrition, and water treatment markets. In the Americas, the company expanded its presence in Chile with the acquisition of Apus Química in the advanced materials sector. In Asia-Pacific, IMCD strengthened its position in India’s pharmaceutical market with Trichem and signed an agreement to acquire Dang Yong FT in Korea, focusing on beauty and personal care.

Segment Performance

IMCD’s performance varied across its regional segments. The company provided a detailed breakdown of gross profit and operating EBITA by region, highlighting different growth patterns and challenges:

The EMEA region showed relative stability, while the Americas and Asia-Pacific regions faced more significant challenges, including currency headwinds. The segment information reveals that organic growth varied considerably across regions, with acquisition growth playing an important role in overall performance.

Financial Position

IMCD’s free cash flow for the first nine months of 2025 reached €284 million, slightly down from €299 million in the same period of 2024. The cash conversion ratio declined to 70.5% from 72.5% in the previous year, reflecting increased working capital requirements and capital expenditures.

The company’s cash flow development is illustrated in the following breakdown:

Net debt increased to €1,510 million as of September 30, 2025, up from €1,282 million at the end of 2024. This increase reflects the company’s continued investment in acquisitions. The leverage ratio (reported net debt to operating EBITDA) rose to 2.6, compared to 2.2 at the end of 2024 and 2.8 in September 2024.

The company’s debt position is summarized in this slide:

Outlook & Forward-Looking Statements

Looking ahead, IMCD acknowledged the challenges posed by macroeconomic and political uncertainty but expressed confidence in its business model and strategy. The company emphasized its focus on earnings growth through organic expansion and strategic acquisitions.

Management noted that IMCD operates in diverse market segments and geographic regions, which provides some resilience against localized economic challenges. However, they also cautioned that future developments remain difficult to predict given the current global economic climate.

The company highlighted its strong ESG performance, with high scores from external rating agencies including a Platinum rating from EcoVadis in 2025 and a low-risk rating from Sustainalytics. This focus on sustainability represents an increasingly important aspect of IMCD’s corporate strategy.

Strategic Initiatives

IMCD continues to position itself as a leading global partner for the distribution and formulation of specialty chemicals and ingredients. The company operates through eight strategic business groups, each focusing on specific market segments:

This diversified approach allows IMCD to leverage its global footprint while maintaining local expertise. The company’s adaptable business model and comprehensive portfolio of specialty products are central to its value proposition in the market.

Despite the current challenges, IMCD remains committed to its long-term growth strategy, focusing on both organic expansion and strategic acquisitions. Management expressed confidence in the company’s teams and infrastructure to continue delivering value and sustaining growth in the coming years, even as they navigate through a period of economic uncertainty.

Full presentation:

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