April 24 2020

IMCD’s EBITA Growth continues in Q1-2020

Acquisitions contribute significantly to Revenue Growth at IMCD

Specialty Chemicals distributor IMCD N.V. (Rotterdam, The Netherlands) reported data for Q1-2020 earlier this week. Sales (or revenues as IMCD calls it) were EUR 748.8 mn, up 6% from EUR 704.8 mn in the same period of 2019 (+6% on a constant currency basis). IMCD said with 5%, the growth comes from mainly from the effect of acquisitions  concluded in 2019 and Q1-2020, and 1% from organic growth.

Gross Profit increased by 12% to EUR 176.4 mn (+12% on a constant currency basis), equivalent to 23.6% of sales, up from 22.4% in Q1-2019. Operating EBITA increased by 11% to EUR 70.9 mn (+11% on a constant currency basis) . This represents a return on sales of 9.5% (compared to the 9.0% realised in Q1 of the previous year), and a conversion marging (= Operating EBITA as percentage of Gross Profit) of 40.2% (virtually uncahnged from 40.2% in Q1-2019).

The resulting in Cash Earnings per Share (i.e. before amortisation) were  EUR 0.94 per share, an increase of  13% when compared with the result for Q1-2019 at EUR 0.83 per share. Free cash flow was EUR 33.3 mn, a decrease of 26%, from EUR 45.0 mn in Q1-2019. This also led to a  small increase of reported debt by EUR 6.4 mn to a total of EUR 741.6 mn (compared to a total of EUR 735.2 mn at the end of 2019). The Net Debt / Operating EBITDA ratio at the ened of March remained constant at 2.8, when compered with 31. December 2019.

In view of the ongoing COVID-19 crisis and its unpredictability, with severity of the effects on global economy yet unknown, IMCD said it was unable to quantify the impact on the company’s results in the coming months and for the rest of the year 2020.

The original press release, which also provides a breakdown by geographic region (or Operating Segment in IMCD’s terminology) can be accessed via the link below: https://www.imcdgroup.com/sites/default/files/PRESS%20RELEASE_IMCD%20reports%2011%25%20EBITA%20growth%20in%20the%20first%20three%20months%20of%202020_1.pdf

Source: IMCD press release

HGE / DCG – 24.04.2020

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