IMCD reports 6% EBITA miss in Q2 as organic growth slows
Investing.com -- IMCD N.V. (AS:IMCD) on Wednesday reported second-quarter EBITA of €133.2 million, a 7% decrease and 6% below consensus estimates of €141.7 million, as organic revenue growth slowed significantly.
The specialty chemicals distributor posted organic revenue growth of just 0.7% in Q2, down from 4.2% in the first quarter and below consensus expectations of 2.3%.
The company maintained a stable gross margin at 25.5%, slightly below the 25.6% consensus estimate, while EBITA margin fell 72 basis points to 11.0%, missing the expected 11.3%.
Foreign exchange effects had a larger than anticipated negative impact of 3.8% on revenues, exceeding the 2.3% that analysts had forecast.
For the first half of 2025, IMCD’s EBITA increased 2% to €275.1 million, driven by organic revenue growth of 2.4% and a 21 basis point improvement in gross margin to 25.6%.
However, EBITA margin declined 19 basis points to 11.1% during this period.
Free cash flow decreased 22% to €173 million, resulting in a leverage ratio of 2.6x EBITDA, up from 2.2x in December 2024.
The company’s shares have declined 21% year-to-date, while competitor Azelis has fallen 23%, compared to an 8% gain for the EuroStoxx index. IMCD currently trades at 14.4x FY25E EV/EBITA, maintaining a 31% premium to Azelis.
Azelis is scheduled to report its second-quarter results on Thursday, with analysts projecting a 10% decrease in EBITA to €116.3 million.
Jefferies analysts anticipate low to mid-single digit downgrades to full-year 2025 consensus EBITA estimates for IMCD following these results.
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