IMCD CEO steps down ahead of results; shares down 4%

Investing.com -- IMCD N.V. (AS:IMCD) said on Thursday that its chief executive Valerie Diele-Braun will step down for personal reasons just hours before the release of its first-quarter results, sending its shares down by over 4%. 

Marcus Jordan, who has served as chief operating officer since 2022 and previously held roles including president of the Americas and group development director, will succeed her on the management board.

Analysts polled by Visible Alpha expect IMCD to report a 13% rise in earnings before interest, taxes and amortization to €142.8 million in 1Q25, driven by 5.3% organic revenue growth and a stable gross margin of 25.4%, lifting the EBITA margin by 36 basis points to 11.3%, Jefferies said. 

By contrast, peer Azelis S.A. posted a 4% decline in EBITA to €119.7 million, 9% below consensus, on just 2.5% organic growth and an 80-basis-point drop in gross margin to 24%, resulting in a 95-basis-point margin decline to 10.9%.

At a recent Jefferies Pan-European mid-cap conference, IMCD management said the company enjoyed a relatively strong start to the year but noted visibility was limited to five or six weeks as customers shifted toward smaller, just-in-time orders. 

The company said it remains confident in its commercial teams and in its digital and logistics infrastructure.

IMCD shares have fallen 14% year to date, compared with an 18% decline for Azelis and a 2% gain in the EuroStoxx 600. 

The stock trades at 14.7 times estimated 2025 EV/EBITA, a 44% premium to Azelis. Jefferies maintains a €170 price target, implying 38% upside, based on a discounted cash-flow valuation that includes a €16 million M&A premium.

In fiscal 2024, IMCD generated revenues of €4.7 billion, securing about a 2% global market share as the second-largest third-party distributor of specialty chemicals and ingredients. 

The company distributed 52,000 products from more than 3,000 suppliers to over 68,000 customers from 118 offices in more than 60 countries. 

It reported a 25.4% gross margin, a 44.2% conversion ratio and an 11.2% EBITA margin. IMCD operates 82 application laboratories, employs 5,126 full-time equivalents and maintains an asset-light model with a 1.7-times capital turnover ratio and a 12% return on invested capital. 

Regional revenue mix was roughly 42% in EMEA, 21% in North America, 10% in Latin America and 27% in Asia-Pacific.