Azelis Reports Improving Performance in 9M 2024
9M 2024 Highlights
-
Revenue of
EUR 3.2bn , representing year-on-year growth of 0.6% (2.3% in constant currency). InQ3, Group revenue increased by 1.5% year-on-year (4.0% in constant currency) toEUR 1.1bn , largely driven by organic growth of 2.8%. -
Gross profit of
EUR 783.7m , represents a gross profit margin of 24.5%. In Q3, gross profit increased by 5.9% compared to the prior year toEUR 257.3m , representing a gross profit margin of 24.4%. The 100 bp margin expansion during the quarter reflects the positive mix effect acrossAzelis' business. -
Adjusted EBITA of
EUR 369.3m , representing Adjusted EBITA margin of 11.5%. In Q3, Adjusted EBITA increased by 3.1% versus the prior year toEUR 115.2m , driving a 16 bp margin expansion to 10.9%. - Conversion margin in the first 9M was 47.1%, versus 49.4% in the prior year.
-
Azelis generated a free cash flow ofEUR 218.4m , representing a 58.5% cash conversion ratio, driven by higher investments in working capital in line with the volume recovery across some of the businesses. -
Leverage ratio was 2.9x at the end of
September 2024 , compared to 2.7x at the end ofJune 2024 and 2.5x at the end ofDecember 2023 . -
Five acquisitions were completed during the period. Two further acquisitions have been announced year to date. The combined annual revenue of these seven companies was over
EUR 100m in the prior year. -
Although trends are improving and
Azelis is well-positioned for a recovery, the Group remains focused on balancing growth and prudent cost management while uncertainty persists.
(in millions of €) |
9M 2024 |
9M 2023 |
Reported
|
Constant
|
||||
Life Sciences |
2,009.5 |
1,965.4 |
2.2% |
4.0% |
||||
Industrial Chemicals |
1,190.3 |
1,214.2 |
-2.0% |
-0.4% |
||||
Revenue |
3,199.9 |
3,179.6 |
0.6% |
2.3% |
||||
Gross Profit |
783.7 |
760.1 |
3.1% |
4.8% |
||||
Gross Profit Margin |
24.5% |
23.9% |
59 bp |
60 bp |
||||
Adjusted EBITDA1 |
400.1 |
400.0 |
0.0% |
2.3% |
||||
Adjusted EBITDA Margin |
12.5% |
12.6% |
-8 bp |
0 bp |
||||
Adjusted EBITA 1 |
369.3 |
375.2 |
-1.6% |
0.6% |
||||
Adjusted EBITA Margin |
11.5% |
11.8% |
-26 bp |
-19 bp |
||||
Conversion Margin1 |
47.1% |
49.4% |
-225 bp |
-200 bp |
||||
Free Cash Flow1 |
218.4 |
389.4 |
-43.9% |
|
||||
FCF Conversion ratio1 |
58.6% |
102.7% |
-4404 bp |
|
||||
|
16.0% |
15.3% |
76 bp |
|
||||
Leverage Ratio1 |
2.9x |
2.6x |
+ 0.3x |
|
||||
1 Refer to the definitions of Alternative Performance Measures in the 2023 Integrated Report |
Comment from
As presented during our investor day on
While we expect uncertainty to persist in the near-term, we believe
CONFERENCE CALL
The management of
OPERATIONAL REVIEW
Headline results
Q3 2024 |
Q3 2023 |
Organic
|
Total
|
(in millions of €) |
9M 2024 |
9M 2023 |
F/X
|
M&A
|
Organic
|
Total
|
||||||||||
438.3 |
434.3 |
3.2% |
0.9% |
EMEA |
1,355.5 |
1,378.7 |
-2.5% |
3.2% |
-2.4% |
-1.7% |
||||||||||
392.7 |
380.7 |
4.6% |
3.2% |
|
1,179.4 |
1,115.6 |
0.0% |
6.8% |
-1.1% |
5.7% |
||||||||||
223.2 |
223.4 |
-1.3% |
-0.1% |
|
665.0 |
685.3 |
-2.7% |
2.7% |
-2.9% |
-3.0% |
||||||||||
1,054.2 |
1,038.3 |
2.8% |
1.5% |
Group Revenue |
3,199.9 |
3,179.6 |
-1.7% |
4.3% |
-2.0% |
0.6% |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
111.6 |
114.8 |
-0.1% |
-2.8% |
EMEA |
352.1 |
367.3 |
-2.5% |
3.3% |
-4.9% |
-4.1% |
||||||||||
99.0 |
85.9 |
16.2% |
15.1% |
|
292.6 |
262.2 |
-0.2% |
7.7% |
4.1% |
11.6% |
||||||||||
46.7 |
42.3 |
5.2% |
10.4% |
|
138.9 |
130.6 |
-2.5% |
4.8% |
4.1% |
6.4% |
||||||||||
257.3 |
243.0 |
6.6% |
5.9% |
Group Gross Profit |
783.7 |
760.1 |
-1.7% |
5.1% |
-0.3% |
3.1% |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
52.5 |
55.1 |
0.0% |
-4.6% |
EMEA |
180.6 |
195.3 |
-3.1% |
2.6% |
-7.0% |
-7.5% |
||||||||||
50.8 |
46.6 |
9.7% |
9.1% |
|
149.3 |
146.6 |
-0.2% |
7.2% |
-5.2% |
1.9% |
||||||||||
21.2 |
18.6 |
5.8% |
14.3% |
|
66.0 |
59.8 |
-2.7% |
5.7% |
7.3% |
10.4% |
||||||||||
115.2 |
111.8 |
3.9% |
3.1% |
Group Adjusted EBITA 1 |
369.3 |
375.2 |
-2.2% |
5.1% |
-4.5% |
-1.6% |
||||||||||
1 Total Adjusted EBITA includes Holding companies. |
EMEA
Q3 2024 |
Q3 2023 |
Reported
|
(in millions of €) |
9M 2024 |
9M 2023 |
Reported
|
Constant
|
|||||||
438.3 |
434.3 |
0.9% |
Revenue |
1,355.5 |
1,378.7 |
-1.7% |
0.8% |
|||||||
111.6 |
114.8 |
-2.8% |
Gross Profit |
352.1 |
367.3 |
-4.1% |
-1.6% |
|||||||
25.5% |
26.4% |
-97 bp |
Gross Profit Margin |
26.0% |
26.6% |
-66 bp |
-66 bp |
|||||||
56.8 |
58.8 |
-3.5% |
Adjusted EBITDA |
193.4 |
205.4 |
-5.9% |
-2.7% |
|||||||
13.0% |
13.5% |
-59 bp |
Adjusted EBITDA Margin |
14.3% |
14.9% |
-63 bp |
-53 bp |
|||||||
52.5 |
55.1 |
-4.6% |
Adjusted EBITA |
180.6 |
195.3 |
-7.5% |
-4.4% |
|||||||
12.0% |
12.7% |
-70 bp |
Adjusted EBITA Margin |
13.3% |
14.2% |
-84 bp |
-75 bp |
|||||||
47.1% |
48.0% |
-93 bp |
Conversion Margin |
51.3% |
53.2% |
-187 bp |
-155 bp |
EMEA revenue in 9M 2024 was
In 9M 2024,
Gross profit in EMEA declined by 4.1% year-on-year (-1.6% in constant currency) to
Q3 2024 |
Q3 2023 |
Reported
|
(in millions of €) |
9M 2024 |
9M 2023 |
Reported
|
Constant
|
|||||||
392.7 |
380.7 |
3.2% |
Revenue |
1,179.4 |
1,115.6 |
5.7% |
5.7% |
|||||||
99.0 |
85.9 |
15.1% |
Gross Profit |
292.6 |
262.2 |
11.6% |
11.8% |
|||||||
25.2% |
22.6% |
262 bp |
Gross Profit Margin |
24.8% |
23.5% |
131 bp |
137 bp |
|||||||
54.3 |
49.5 |
9.8% |
Adjusted EBITDA |
160.5 |
154.8 |
3.7% |
3.9% |
|||||||
13.8% |
13.0% |
84 bp |
Adjusted EBITDA Margin |
13.6% |
13.9% |
-26 bp |
-23 bp |
|||||||
50.8 |
46.6 |
9.1% |
Adjusted EBITA |
149.3 |
146.6 |
1.9% |
2.1% |
|||||||
12.9% |
12.2% |
71 bp |
Adjusted EBITA Margin |
12.7% |
13.1% |
-48 bp |
-44 bp |
|||||||
51.4% |
54.2% |
-283 bp |
Conversion Margin |
51.0% |
55.9% |
-487 bp |
-487 bp |
In 9M 2024 revenue in the
During the period,
Gross profit in the region increased by 11.6% to
Q3 2024 |
Q3 2023 |
Reported
|
(in millions of €) |
9M 2024 |
9M 2023 |
Reported
|
Constant
|
|||||||
223.2 |
223.4 |
-0.1% |
Revenue |
665.0 |
685.3 |
-3.0% |
-0.2% |
|||||||
46.7 |
42.3 |
10.4% |
Gross Profit |
138.9 |
130.6 |
6.4% |
8.9% |
|||||||
20.9% |
18.9% |
199 bp |
Gross Profit Margin |
20.9% |
19.1% |
183 bp |
179 bp |
|||||||
23.2 |
20.7 |
12.2% |
Adjusted EBITDA |
72.2 |
65.6 |
10.0% |
12.7% |
|||||||
10.4% |
9.3% |
114 bp |
Adjusted EBITDA Margin |
10.9% |
9.6% |
128 bp |
128 bp |
|||||||
21.2 |
18.6 |
14.3% |
Adjusted EBITA |
66.0 |
59.8 |
10.4% |
13.1% |
|||||||
9.5% |
8.3% |
119 bp |
Adjusted EBITA Margin |
9.9% |
8.7% |
120 bp |
120 bp |
|||||||
45.4% |
43.9% |
153 bp |
Conversion Margin |
47.5% |
45.8% |
172 bp |
181 bp |
Revenue in APAC decreased by 3.0% to
During the first nine months,
Gross profit in the region grew 6.4% to
Holding companies
Q3 2024 |
Q3 2023 |
Reported
|
|
9M 2024 |
9M 2023 |
Reported
|
Constant
|
|||||||
-9.3 |
-8.4 |
10.6% |
Adjusted EBITA (in millions of €) |
-26.7 |
-26.4 |
1.1% |
1.1% |
|||||||
-0.9% |
-0.8% |
-7 bp |
As % of Group Revenue |
-0.8% |
-0.8% |
0 bp |
1 bp |
Operating costs at
OUTLOOK
The market for specialty chemical and food ingredient distribution remains highly attractive.
FINANCIAL REVIEW
Q3 2024 |
Q3 2023 |
Reported
|
(in millions of €) |
9M 2024 |
9M 2023 |
F/X
|
M&A
|
Organic
|
Total
|
|||||||||
1,054.2 |
1,038.3 |
1.5% |
Revenue |
3,199.9 |
3,179.6 |
-1.7% |
4.3% |
-2.0% |
0.6% |
|||||||||
257.3 |
243.0 |
5.9% |
Gross Profit |
783.7 |
760.1 |
-1.7% |
5.1% |
-0.3% |
3.1% |
|||||||||
115.2 |
111.8 |
3.1% |
Adjusted EBITA |
369.3 |
375.2 |
-2.2% |
5.1% |
-4.5% |
-1.6% |
Q3 2024 |
Q3 2023 |
Reported
|
(in millions of €) |
9M 2024 |
9M 2023 |
Reported
|
Constant
|
|||||||
661.2 |
648.5 |
2.0% |
Life Sciences |
2,009.5 |
1,965.4 |
2.2% |
4.0% |
|||||||
393.0 |
389.8 |
0.8% |
Industrial Chemicals |
1,190.3 |
1,214.2 |
-2.0% |
-0.4% |
|||||||
1,054.2 |
1,038.3 |
1.5% |
Group Revenue |
3,199.9 |
3,179.6 |
0.6% |
2.3% |
|||||||
257.3 |
243.0 |
5.9% |
Gross Profit |
783.7 |
760.1 |
3.1% |
4.8% |
|||||||
24.4% |
23.4% |
100 bp |
Gross Profit Margin |
24.5% |
23.9% |
59 bp |
60 bp |
|||||||
125.3 |
120.8 |
3.7% |
Adjusted EBITDA |
400.1 |
400.0 |
0.0% |
2.3% |
|||||||
11.9% |
11.6% |
25 bp |
Adjusted EBITDA Margin |
12.5% |
12.6% |
-8 bp |
0 bp |
|||||||
115.2 |
111.8 |
3.1% |
Adjusted EBITA |
369.3 |
375.2 |
-1.6% |
0.6% |
|||||||
10.9% |
10.8% |
16 bp |
Adjusted EBITA Margin |
11.5% |
11.8% |
-26 bp |
-19 bp |
|||||||
44.8% |
46.0% |
-122 bp |
Conversion Margin |
47.1% |
49.4% |
-225 bp |
-200 bp |
Revenue
In 9M 2024, revenue grew 0.6% year-on-year to
In
Profitability
Gross profit increased by 3.1% to
During the period, Adjusted EBITA declined by 1.6% to
Cash Flow and Financing
Net working capital to revenue normalized for acquisitions was 16.0% at the end of
Free cash flow decreased by 43.9% to
At the end of
POST-CLOSING EVENTS
On
ALTERNATIVE PERFORMANCE MEASURES
Throughout its financial communication (Annual and Interim reports, website, press releases, presentations, etc.),
NOTES AND DISCLAIMER
Notes to the editor
About
Across our extensive network of more than 70 application laboratories, our award-winning staff help develop formulations and provide technical guidance throughout the customers’ product development process. We combine a global market reach with a local footprint to offer a reliable, integrated, and unique digital service to local customers and attractive- business opportunities to principals. Top industry-rated by Sustainalytics,
Impact through ideas. Innovation through formulation.
Important disclaimer
This announcement may contain statements relevant to
The forward-looking statements and estimates contained herein represent the judgment of and are based on the information available to the Company’s management as of the date of this announcement. They involve a number of known and unknown risks, uncertainties, and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements.
These forward-looking statements should not be considered as guarantees for the future performance of the
The foregoing list of important factors is not exhaustive. When considering forward-looking statements, careful consideration should be given to the foregoing factors and other uncertainties and events, as well as factors described in any other document published by the Company with the
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Azelis Investor Relations
+32 3 613 01 27
investor-relations@azelis.com
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