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Investing.com -- Azelis on Thursday reported a 15% decrease in third-quarter EBITA to €98.2 million, falling 3% below consensus expectations of €100.9 million.
The specialty chemicals distributor saw organic revenue decline by 4.1% in the quarter, compared to a slight 0.1% drop in the second quarter.
Regional performance showed weakness across all markets, with EMEA declining 5.6% (versus +5.1% in first half), Americas down 2.2% (versus -0.4%), and Asia Pacific falling 4.6% (versus -5.1%).
Gross margin contracted by 107 basis points to 23.3%, missing consensus estimates of 23.6%, due to negative mix effects. This led to a 126 basis point reduction in EBITA margin to 9.7%, below the expected 10%.
Despite these challenges, free cash flow increased 34% to €293.2 million for the first nine months of 2025, reflecting improved working capital management. However, net debt rose to 3.4x EBITDA from 2.9x at the end of fiscal year 2024, following merger and acquisition activities and earn-out payments.
The company announced that CFO Thijs Bakker will step down after nearly 10 years with the firm. A successor is expected to be announced soon.
Azelis reported it is making progress in realigning resources with end-market demand, which should generate additional cost savings of €20 million for fiscal year 2025.
While near-term visibility remains limited, both Azelis and industry peer IMCD believe the sector’s fundamentals remain attractive, with expected growth of approximately 4% annually until 2027.
The companies are positioned to gain market share as suppliers and customers increasingly seek global distributors with strong sustainability practices and technical infrastructure.
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