Japan PPI inflation slips to 11-mth low in July
Investing.com -- Ems Chemie Hld (SIX:EMSN) reported a solid performance in the first half of 2025, with profitability increasing despite lower sales and ongoing macroeconomic headwinds.
Net sales declined by 6.2% year-on-year to CHF 1,020 million, impacted by a stronger Swiss Franc and softer global demand. Currency effects alone accounted for a 2.5% drag on revenues.
However, the company improved margins thanks to its focus on high-margin specialty products, innovation, and cost efficiency. EBIT rose 1.4% to CHF 296 million, while EBITDA increased by 1.3% to CHF 323 million.
This pushed the EBIT margin up to 29.0% from 26.8% a year earlier, and the EBITDA margin to 31.7% from 29.4%.
EMS credited its resilience to early preparation for trade disruptions, local production in key markets, and a strategic expansion of technical sales and development in Asia, the U.S., and Europe. The group emphasized its strong positioning in specialties and efficiency gains, along with high equity and no debt.
Looking ahead, EMS expects a continued challenging environment with geopolitical tensions and currency pressure weighing on global trade.
"The trade conflicts will interfere with global trade and supply chains, unsettling both consumers and companies equally. In the US, economic growth is slowing due to expected higher inflation rates. In Europe, structural improvements need time," EMS Chemie wrote in the release.
"The unsolved customs disputes are dampening the general business mood. China is focusing on consumer stimuli to compensate missing U.S.-business and on a self-sufficient supply," it added.
The group still sees full-year EBIT coming in slightly above 2024, even though sales will likely remain below last year’s level due to FX effects. The proposed dividend has been increased to CHF 17.25 per share from CHF 16.00.