Antwerp, Belgium, August 1st, 2024 - 07.00am CET
Azelis reports stable revenue for H1 2024
H1 2024 Highlights
- Revenue in the first half of 2024 was stable relative to the prior year, at EUR 2.1bn. In Q2, total group revenue increased by 4.4% to EUR 1.1bn, driven by M&A growth contribution and stable organic revenue.
- Gross profit of EUR 526.5m represents year-on-year growth of 1.8%, supported by positive mix effect and improved performance from recent acquisitions. Gross profit margin of 24.5% reflects a 39 bp expansion over the prior year.
- Adjusted EBITA of EUR 254.0m, representing a decline of 3.6% compared to the strong comparable performance in the prior year. Adjusted EBITA margin was 11.8%, resulting in conversion margin of 48.2% for the period.
- Net profit of EUR 100.1m represents a year-on-year decline of 8.3%, due mainly to lower operating profit and the full year impact of higher debt level and interest expense.
- Free cash flow was EUR 136.5m in H1 2024, representing a 44.3% decrease compared to the prior year, due to lower EBITDA and higher investments in working capital.
- Leverage ratio was 2.7x at the end of June 2024, versus 2.5x at the end of December 2023 and 2.6x at the end of June 2023.
- Four acquisitions were completed during the period. Two further acquisitions have been announced year to date. The combined annual revenue of these six companies were over EUR 70m in the prior year.
- The management of Azelis will provide an update on the Group strategy, including its midterm outlook, at the third edition of its Annual Investor Lab Tour on the 17th of September.
(in millions of €) | H1 2024 | H1 2023 | Reported Change | Constant Currency |
Life Sciences | 1,348.4 | 1,316.9 | 2.4% | 3.8% |
Industrial Chemicals | 797.3 | 824.4 | -3.3% | -2.3% |
Revenue | 2,145.7 | 2,141.2 | 0.2% | 1.5% |
Gross Profit | 526.5 | 517.1 | 1.8% | 3.2% |
Gross Profit Margin | 24.5% | 24.1% | 39 bp | 42 bp |
Adjusted EBITDA1 | 274.8 | 279.2 | -1.6% | 0.5% |
Adjusted EBITDA Margin | 12.8% | 13.0% | -23 bp | -13 bp |
Adjusted EBITA1 | 254.0 | 263.4 | -3.6% | -1.5% |
Adjusted EBITA Margin | 11.8% | 12.3% | -46 bp | -36 bp |
Conversion Margin1 | 48.2% | 50.9% | -269 bp | -235 bp |
Net Profit | 100.1 | 109.2 | -8.3% | -8.7% |
Cash earnings per share1 | 0.56 | 0.60 | -7.5% | -7.9% |
Earnings per share | 0.39 | 0.44 | -11.2% | -17.2% |
Operating Cash Flow | 153.4 | 250.2 | -38.7% |
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Free Cash Flow1 | 136.5 | 245.2 | -44.3% |
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FCF Conversion ratio1 | 53.3% | 92.2% | -3891 bp |
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Net Working Capital / Revenue normalized for acquisitions1 | 15.4% | 15.4% | 0 bp |
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Leverage Ratio1 | 2.7x | 2.6x | + 0.1x |
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- Refer to the definitions of Alternative Performance Measures in the 2023 Integrated Report
Comment from Anna Bertona, CEO: "Our results in H1 2024 reflect our focus on delivering strong performance for all our stakeholders. While challenges remain in a number of our markets, we believe we are very well positioned to capture the emerging opportunities as the market moves from stabilization to recovery.
We continue to execute on our growth strategy, whilst also remaining steadfast in our focus on our costs. We will balance our objective of generating growth while maintaining our strong conversion margins.
I look forward to providing an update on our strategy and the outlook for the Group at our annual investor lab tour on the 17th of September."
Conference call
The management of Azelis invites you to a conference call and live webcast at 09:00 CET to discuss the operating trends and outlook for the remainder of the year. Please click here to view the webcast.
Contact information
Azelis Investor Relations
T: +32 3 613 01 27
E: investor-relations@azelis.com
Operational Review
Headline results
Q2 2024 | Q2 2023 | Organic Growth | Total Growth | (in millions of €) | H1 2024 | H1 2023 | F/X Trans-lation | M&A Growth Contri- | Organic Growth | Total Growth |
457.1 | 443.5 | -0.9% | 3.1% | EMEA | 917.2 | 944.4 | -2.1% | 4.2% | -5.0% | -2.9% |
415.3 | 376.5 | 0.4% | 10.3% | Americas | 786.7 | 734.9 | 1.2% | 9.8% | -4.0% | 7.1% |
222.2 | 228.4 | -1.1% | -2.7% | Asia Pacific | 441.8 | 461.9 | -3.5% | 2.8% | -3.6% | -4.4% |
1,094.6 | 1,048.4 | -0.5% | 4.4% | Group Revenue | 2,145.7 | 2,141.2 | -1.2% | 5.8% | -4.4% | 0.2% |
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119.4 | 122.8 | -5.4% | -2.8% | EMEA | 240.6 | 252.5 | -2.2% | 4.6% | -7.2% | -4.7% |
101.4 | 85.3 | 7.2% | 18.8% | Americas | 193.7 | 176.2 | 0.7% | 10.9% | -1.8% | 9.9% |
45.1 | 43.2 | 4.3% | 4.3% | Asia Pacific | 92.2 | 88.3 | -3.3% | 4.1% | 3.6% | 4.4% |
265.9 | 251.3 | 0.5% | 5.8% | Group Gross Profit | 526.5 | 517.1 | -1.4% | 6.7% | -3.5% | 1.8% |
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62.3 | 67.6 | -10.1% | -7.9% | EMEA | 128.1 | 140.2 | -2.8% | 4.0% | -9.8% | -8.6% |
53.3 | 51.2 | -6.8% | 4.1% | Americas | 98.5 | 100.0 | 0.5% | 10.1% | -12.1% | -1.5% |
22.6 | 19.8 | 14.4% | 14.4% | Asia Pacific | 44.8 | 41.2 | -3.3% | 3.8% | 8.0% | 8.6% |
129.7 | 129.4 | -5.2% | 0.2% | Group Adjusted EBITA1 | 254.0 | 263.4 | -2.1% | 6.6% | -8.1% | -3.6% |
1Total Adjusted EBITA includes Holding companies.
Azelis delivered revenue of EUR 2.1bn in H1 2024, in-line with revenue achieved in the same period last year, with revenue growth contribution from acquisitions offsetting organic revenue decline and the impact of FX translation. In Q2, revenue increased by 4.4% to EUR 1.1bn, supported by growth contribution from acquisitions and stable organic revenue.
In H1 2024, revenue in Life Sciences increased by 2.4% to EUR 1.3bn, supported by revenue contribution from recent acquisitions, notably Gillco and Vogler in the Americas. Results in Industrial Chemicals remain under pressure, with revenue declining 3.3% to EUR 797.3m, as volume improvement continues to be offset by pricing impact. Overall, we see a sustained recovery in volumes, tempered by the impact of continuing price pressure across many of our markets.
EMEA
Q2 2024 | Q2 2023 | Reported Change | (in millions of €) | H1 2024 | H1 2023 | Reported Change | Constant Currency |
457.1 | 443.5 | 3.1% | Revenue | 917.2 | 944.4 | -2.9% | -0.8% |
119.4 | 122.8 | -2.8% | Gross Profit | 240.6 | 252.5 | -4.7% | -2.5% |
26.1% | 27.7% | -157 bp | Gross Profit Margin | 26.2% | 26.7% | -51 bp | -47 bp |
66.9 | 70.8 | -5.5% | Adjusted EBITDA | 136.6 | 146.6 | -6.8% | -4.0% |
14.6% | 16.0% | -134 bp | Adjusted EBITDA Margin | 14.9% | 15.5% | -63 bp | -51 bp |
62.3 | 67.6 | -7.9% | Adjusted EBITA | 128.1 | 140.2 | -8.6% | -5.8% |
13.6% | 15.3% | -163 bp | Adjusted EBITA Margin | 14.0% | 14.8% | -88 bp | -76 bp |
52.2% | 55.1% | -293 bp | Conversion Margin | 53.2% | 55.5% | -226 bp | -192 bp |
EMEA revenue declined by 2.9% (-0.8% in constant currency) to EUR 917.2m in H1 2024, driven by organic revenue decline of 5.0% as price volatility limits the benefit of volume recovery across many of our markets, notably in Agricultural & Environmental Solutions (A&ES). Revenue growth contribution from acquisitions was 4.2%, while FX translation represented a 2.1% headwind during the period.
During the first half of the year, we completed the acquisition of Oktrade and DBH, strengthening our lateral value chain for the Personal Care market in Turkey, and the Advanced Materials & Additives market in the DACH region respectively.
Gross profit declined by 4.7% year-on-year (-2.5% in constant currency) to EUR 240.6m in H1 2024, translating to a 51bp contraction in gross profit margin to 26.2%, driven by the mix shift towards Industrial Chemicals during the period, as well as time lag in pricing. Adjusted EBITA decreased by 8.6% to EUR 128.1m, resulting in conversion margin of 53.2%.
Americas
Q2 2024 | Q2 2023 | Reported Change | (in millions of €) | H1 2024 | H1 2023 | Reported Change | Constant Currency |
415.3 | 376.5 | 10.3% | Revenue | 786.7 | 734.9 | 7.1% | 5.8% |
101.4 | 85.3 | 18.8% | Gross Profit | 193.7 | 176.2 | 9.9% | 9.1% |
24.4% | 22.7% | 175 bp | Gross Profit Margin | 24.6% | 24.0% | 63 bp | 76 bp |
57.1 | 53.9 | 5.8% | Adjusted EBITDA | 106.2 | 105.3 | 0.9% | 0.3% |
13.7% | 14.3% | -58 bp | Adjusted EBITDA Margin | 13.5% | 14.3% | -83 bp | -73 bp |
53.3 | 51.2 | 4.1% | Adjusted EBITA | 98.5 | 100.0 | -1.5% | -2.0% |
12.8% | 13.6% | -77 bp | Adjusted EBITA Margin | 12.5% | 13.6% | -109 bp | -98 bp |
52.6% | 60.0% | -745 bp | Conversion Margin | 50.9% | 56.7% | -588 bp | -572 bp |
Revenue in the Americas was EUR 786.7m in H1 2024, representing a year-on-year growth of 7.1% (5.8% in constant currency). The Group's activities in the Americas reported a 4.0% organic revenue decline, as volume recovery in US CASE and improvement in the broader market in Latin America supported a stabilization in organic revenue in Q2. Revenue growth contribution from acquisitions was 9.8%, whilst FX translation represented a 1.2% tailwind during the period.
In H1 2024, Azelis completed the acquisition of Localpack, reinforcing our footprint in Colombia.
Gross profit in the region increased by 9.9% to EUR 193.7m, with gross profit margin expanding 63 bps to 24.6%. The uptick was driven largely by improved margin performance across our businesses in Latin America, offsetting the continued softer margins in the US Industrial Chemicals due to continued price pressure in CASE. During the period, Adjusted EBITA declined by 1.5% to EUR 98.5m, mainly due to lower benefit of cost control measures compared to H1 2023, resulting in Adjusted EBITA margin of 12.5%. The 109 bp Adjusted EBITA margin contraction also reflects the impact of dilution from Latin America as we work to integrate our recent acquisitions. The lower Adjusted EBITA resulted in conversion margin of 50.9% in H1 2024.
Asia Pacific
Q2 2024 | Q2 2023 | Reported Change | (in millions of €) | H1 2024 | H1 2023 | Reported Change | Constant Currency |
222.2 | 228.4 | -2.7% | Revenue | 441.8 | 461.9 | -4.4% | -0.9% |
45.1 | 43.2 | 4.3% | Gross Profit | 92.2 | 88.3 | 4.4% | 7.7% |
20.3% | 18.9% | 137 bp | Gross Profit Margin | 20.9% | 19.1% | 176 bp | 171 bp |
24.9 | 21.7 | 14.3% | Adjusted EBITDA | 49.0 | 45.0 | 9.0% | 12.3% |
11.2% | 9.5% | 167 bp | Adjusted EBITDA Margin | 11.1% | 9.7% | 136 bp | 134 bp |
22.6 | 19.8 | 14.4% | Adjusted EBITA | 44.8 | 41.2 | 8.6% | 11.9% |
10.2% | 8.7% | 152 bp | Adjusted EBITA Margin | 10.1% | 8.9% | 121 bp | 119 bp |
50.2% | 45.8% | 441 bp | Conversion Margin | 48.6% | 46.7% | 186 bp | 186 bp |
Revenue in APAC declined by 4.4% to EUR 441.8m in H1 2024, driven by organic revenue contraction of 3.6% and a negative impact from FX translation of 3.5%, partly mitigated by a 2.8% revenue growth contribution from recent acquisitions. The organic revenue contraction in the region follows a strong performance in the comparable period last year, when the region delivered 36.0% revenue growth, of which 6.9% was organic.
During the first half of the year, we completed the acquisition of Agspec, a leading distributor of crop nutrition, crop protection and specialty agricultural products in Australia.
Gross profit in the region grew 4.4% to EUR 92.2m, representing gross profit margin of 20.9%. The 176 bp expansion in gross profit margin was driven by improving profitability of recent acquisitions. Adjusted EBITA increased by 8.6% to EUR 44.8m, reflecting continuous margin improvement initiatives. The improvement in both gross profit and Adjusted EBITA margin resulted in a 186 bp expansion in conversion margin to 48.6% during the period.
Holding companies
Q2 2024 | Q2 2023 | Reported Change |
| H1 2024 | H1 2023 | Reported Change | Constant Currency |
-8.5 | -9.2 | -7.2% | Adjusted EBITA (in millions of €) | -17.4 | -18.0 | -3.4% | -3.4% |
-0.8% | -0.9% | 10 bp | As % of Group Revenues | -0.8% | -0.8% | 3 bp | 4 bp |
Operating costs at the Group’s holding companies, relating to the Group’s non-operating entities as well as the head office in Belgium, were EUR 17.4m in H1 2024, compared to EUR 18.0m in the previous year. Relative to revenue, Operating costs at the Group’s holding companies remained stable at 0.8% of revenue.
Outlook
Azelis' strategy of driving growth is underpinned by a consistently strengthening lateral value chain, supported by continuous investments in innovation capabilities and digitalization, as well as a commitment to sustainability to create long-term value.
As global political and economic uncertainty persists, we remain committed to managing our costs whilst also ensuring that we are well-positioned to benefit from a market recovery, the timing of which remains uncertain.
The Group has expanded its operational and geographic footprint over the last three years, strengthening its commercial and technical network and developing new competencies within the specialty chemical & food ingredients distribution. Management will provide an update on our strategy at our annual investor laboratory event in September.
Financial Review
Q2 2024 | Q2 2023 | Reported Change | (in millions of €) | H1 2024 | H1 2023 | F/X Translation | M&A Growth Contribution | Organic Growth | Total Growth |
1,094.6 | 1,048.4 | 4.4% | Revenue | 2,145.7 | 2,141.2 | -1.2% | 5.8% | -4.4% | 0.2% |
265.9 | 251.3 | 5.8% | Gross Profit | 526.5 | 517.1 | -1.4% | 6.7% | -3.5% | 1.8% |
129.7 | 129.4 | 0.2% | Adjusted EBITA | 254.0 | 263.4 | -2.1% | 6.6% | -8.1% | -3.6% |
Q2 2024 | Q2 2023 | Reported Change | (in millions of €) | H1 2024 | H1 2023 | Reported Change | Constant Currency |
679.6 | 647.9 | 4.9% | Life Sciences | 1,348.4 | 1,316.9 | 2.4% | 3.8% |
415.0 | 400.5 | 3.6% | Industrial Chemicals | 797.3 | 824.4 | -3.3% | -2.3% |
1,094.6 | 1,048.4 | 4.4% | Group Revenue | 2,145.7 | 2,141.2 | 0.2% | 1.5% |
265.9 | 251.3 | 5.8% | Gross Profit | 526.5 | 517.1 | 1.8% | 3.2% |
24.3% | 24.0% | 32 bp | Gross Profit Margin | 24.5% | 24.1% | 39 bp | 42 bp |
140.5 | 137.5 | 2.2% | Adjusted EBITDA | 274.8 | 279.2 | -1.6% | 0.5% |
12.8% | 13.1% | -28 bp | Adjusted EBITDA Margin | 12.8% | 13.0% | -23 bp | -13 bp |
129.7 | 129.4 | 0.2% | Adjusted EBITA | 254.0 | 263.4 | -3.6% | -1.5% |
11.8% | 12.3% | -50 bp | Adjusted EBITA Margin | 11.8% | 12.3% | -46 bp | -36 bp |
48.8% | 51.5% | -273 bp | Conversion Margin | 48.2% | 50.9% | -269 bp | -235 bp |
106.8 | 106.1 | 0.7% | Operating Profit | 214.7 | 225.0 | -4.6% | -2.9% |
55.6 | 50.7 | 9.6% | Net Profit | 100.1 | 109.2 | -8.3% | -8.7% |
Revenue
Revenue in H1 2024 was stable compared to the prior year at EUR 2.1bn, with revenue growth contribution from acquisitions offsetting the decline in organic revenue, as well as the negative impact of FX translation. During the period, Group organic revenue declined by 4.4%, as ongoing pricing pressure offset the impact of volume recovery in many end markets across our regions. Revenue from acquisitions represented topline growth contribution of 5.8%, while FX translation represented a 1.2% headwind.
Revenue in Life Sciences was EUR 1.3bn, up 2.4% compared to the prior year, as revenue growth contribution from acquisitions offset the organic decline during the period. Revenue in Industrial Chemicals declined by 3.3% to EUR 797.3m, with the ongoing pricing pressure offsetting the impact of volume recovery in our end markets.
Profitability
In H1 2024, gross profit increased by 1.8% to EUR 526.5m. Gross profit margin expanded by 39 bps to 24.5%, supported by positive mix effect from improved performance from recent acquisitions. Adjusted EBITA was EUR 254.0m, representing a 3.6% year-on-year decline, due largely to lower benefit from cost control measures compared to the prior year. Adjusted EBITA margin was 11.8% in H1 2024.
Net financial expense in H1 2024 was broadly stable at EUR 72.4m despite the higher interest expense due to the full year impact of higher gross debt with higher interest rates, as this was partly mitigated by higher interest income on our cash balance. Our result for the period also includes a non-cash charge of EUR 12.2m from the impact of hyperinflation accounting in Turkey. Tax expense for the period was EUR 42.2m, implying an effective tax rate (ETR) of 29.6%, versus 29.0% in the prior year.
Net profit was EUR 100.1m, and cash earnings per share was EUR 0.56 for H1 2024.
(in millions of €) | H1 2024 | H1 2023 |
Operating profit | 214.7 | 225.0 |
Net Financial Expense | -72.4 | -71.2 |
Financial Income | 15.3 | 3.4 |
Financial Expense | -87.7 | -74.6 |
Interest Expense on Bank Loans and Overdrafts | -49.4 | -40.2 |
Interest Lease Commitments | -4.2 | -2.0 |
Other Financial Cost | -34.1 | -32.4 |
Profit Before Tax | 142.3 | 153.8 |
Tax Expense | -42.2 | -44.6 |
Net Profit | 100.1 | 109.2 |
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Earnings per share | 0.39 | 0.44 |
Cash earnings per share | 0.56 | 0.60 |
Cash Flow and Financing
Net working capital to revenue normalized for acquisitions was 15.4% at the end of June 2024, versus 13.4% at the end of December 2023, and 15.4% in June 2023. The working capital intensity during the period is seasonally in-line with prior years.
Free cash flow decreased by 44.3% to EUR 136.5m, driven by lower EBITDA, and higher investments in working capital as volumes begin to recover. This resulted in a 39 percentage point contraction in FCF conversion ratio to 53.3% in H1 2024.
Net debt was EUR 1.4bn and leverage ratio stood at 2.7x at the end of June 2024, versus 2.5x in December and 2.6x in June 2023. At the end of the period, the Group had liquidity of EUR 734.5m in cash and unused revolving credit facility (RCF).
(in millions of €) | H1 2024 | H1 2023 |
Operating Cash Flow | 153.4 | 250.2 |
Free Cash Flow | 136.5 | 245.2 |
FCF Conversion | 53.3% | 92.2% |
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Net Working Capital / Revenue normalized for acquisitions | 15.4% | 15.4% |
Net Indebtedness | 1,393.7 | 1,430.2 |
Leverage Ratio | 2,7x | 2,6x |
Alternative performance measures
Throughout its financial communication (Annual and Interim reports, website, press releases, presentations, etc.), Azelis presents certain financial measures and adjustments that are not in accordance with IFRS, or any other internationally accepted accounting principles. Certain of these measures are termed 'alternative performance measure' ("APM's") because they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with IFRS, or are calculated using financial measures that are not calculated in accordance with IFRS. For more information regarding these APM's, including definitions and calculation methodology, refer to the section 'Alternative performance measures' in the Integrated Report 2023.
Appendix
All figures and tables contained in this appendix have been extracted from Azelis' unaudited condensed consolidated interim financial statements for the first six months of 2024, which have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the European Union.
The statutory auditor, PwC Bedrijfsrevisoren BV / Reviseurs d’Entreprises SRL, represented by Peter Van den Eynde, has reviewed these condensed consolidated interim financial statements and concluded that based on the review, nothing has come to the attention that causes them to believe that the condensed consolidated interim financial information is not prepared, in all material respects, in accordance with IAS 34, as adopted by the European Union.
For the condensed consolidated interim financial statements for the first six months of 2024 and the review report of the statutory auditor we refer to Azelis' website.
Consolidated income statement for the period ended 30 June
(in thousands of €) | Jan-June 2024 | Jan-June 2023 |
Revenue | 2,145,661 | 2,141,225 |
Other operating income | 12,832 | 12,559 |
Total income | 2,158,493 | 2,153,784 |
Costs for goods and consumables | -1,632,026 | -1,636,681 |
Gross profit | 526,467 | 517,103 |
Employee benefits expenses | -153,210 | -149,709 |
External services and other expenses | -102,445 | -94,002 |
Depreciation of tangible assets | -20,829 | -15,796 |
Amortization of intangible assets | -35,300 | -32,637 |
Operating profit / loss (-) | 214,683 | 224,959 |
Financial income | 15,321 | 3,404 |
Financial expenses | -87,718 | -74,603 |
Net financial expense | -72,397 | -71,199 |
Profit / loss (-) before tax | 142,286 | 153,760 |
Income tax income / expense (-) | -42,156 | -44,579 |
Net profit / loss (-) for the period from continuing operations | 100,130 | 109,181 |
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Attributable to: |
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Equity holders of the parent | 94,822 | 103,458 |
Non-controlling interests | 5,308 | 5,723 |
Net profit / loss (-) for the period | 100,130 | 109,181 |
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| in € | in € |
Basic earnings per share | 0.39 | 0.44 |
Diluted earnings per share | 0.39 | 0.44 |
Consolidated statement of financial position
(in thousands of €) | June 30, 2024 | December 31, 2023 |
Assets |
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Goodwill | 2,473,548 | 2,409,251 |
Intangible assets | 1,366,913 | 1,349,133 |
Property, plant and equipment | 68,636 | 73,577 |
Right of Use assets | 170,682 | 123,048 |
Investments in associates | 285 | 285 |
Other financial assets | 1,518 | 7,749 |
Deferred tax assets | 17,305 | 15,693 |
Total non-current assets | 4,098,887 | 3,978,736 |
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Inventories | 607,014 | 562,790 |
Trade and other receivables | 677,404 | 521,896 |
Income tax receivables | 8,465 | 23,872 |
Other financial assets | 4,717 | 60 |
Cash and cash equivalents | 384,492 | 484,874 |
Total current assets | 1,682,092 | 1,593,492 |
Total assets | 5,780,979 | 5,572,228 |
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Equity |
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Share capital | 5,880,000 | 5,880,000 |
Reserves | -3,954,893 | -3,927,077 |
Retained earnings | 669,904 | 459,372 |
Unappropriated result | 94,822 | 177,704 |
Issued capital and reserves attributable to owners of the parent | 2,689,833 | 2,589,999 |
Non-controlling interests | 88,305 | 86,579 |
Total equity | 2,778,138 | 2,676,578 |
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Loans and borrowings | 1,553,323 | 1,550,634 |
Lease obligations | 144,894 | 100,347 |
Employee benefit obligations | 12,846 | 13,637 |
Provisions | 2,731 | 3,158 |
Other non-current liabilities | 30,117 | 69,816 |
Deferred tax liabilities | 222,840 | 218,306 |
Total non-current liabilities | 1,966,751 | 1,955,898 |
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Bank overdrafts | 28,834 | 18,286 |
Loans and borrowings | 43,125 | 80,560 |
Lease obligations | 28,236 | 26,271 |
Provisions | 3,118 | 3,670 |
Income tax payables | 19,360 | 11,495 |
Trade and other payables | 913,417 | 799,470 |
Total current liabilities | 1,036,090 | 939,752 |
Total liabilities | 3,002,841 | 2,895,650 |
Total equity and liabilities | 5,780,979 | 5,572,228 |
Consolidated statement of cash flows
(in thousands of €) | Jan-June 2024 | Jan-June 2023 |
Cash flows from operating activities |
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Net profit / loss (-) for the period | 100,130 | 109,181 |
Adjustments for: |
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Depreciation, amortization and impairment expenses | 56,128 | 48,432 |
Net financial expense | 72,397 | 71,199 |
Cost of share-based payment | 989 | 861 |
Income tax income / expense | 42,156 | 44,579 |
Change in inventories | -37,361 | 37,147 |
Change in trade and other receivables and other investments | -160,204 | -35,814 |
Change in trade and other payables | 81,070 | -28,030 |
Change in provisions | -1,906 | 2,676 |
Cash flow from operating activities | 153,399 | 250,231 |
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Interest received | 9,279 | 2,243 |
Income tax paid | -22,196 | -47,666 |
Net cash flow from operating activities | 140,482 | 204,808 |
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Cash flow from investing activities |
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Acquisition of property, plant and equipment and intangible assets | -5,469 | -5,771 |
Acquisition of subsidiaries, net of cash acquired | -122,033 | -557,640 |
Net cash flow from investing activities | -127,502 | -563,411 |
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Cash flows from financing activities |
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Payments of lease obligation | -18,572 | -13,168 |
Dividend payment to shareholders of the group | - | -47,690 |
Purchase of treasury shares | -2,507 | -3,408 |
Capital increase | - | 200,000 |
Expenses related to capital increase | - | -2,223 |
Interest paid | -62,287 | -36,663 |
Proceeds from loans and borrowings | 29,558 | 623,864 |
Repayments of loans and borrowings | -64,203 | -204,810 |
Transaction costs related to loans and borrowings | - | -7,715 |
Other cash flows from financing activities | -4,432 | 2,126 |
Net cash flow from financing activities | -122,443 | 510,313 |
|
|
|
Net (decrease) increase in cash and cash equivalents | -109,463 | 151,710 |
|
|
|
Effect of exchange rate fluctuations on cash held | -1,467 | 581 |
Cash and cash equivalents minus Bank overdraft at beginning of the period | 466,588 | 237,748 |
|
|
|
Cash and cash equivalents minus Bank overdraft at June 30 | 355,658 | 390,039 |
Notes and disclaimer
About Azelis:
Azelis is a leading global innovation service provider in the specialty chemical and food ingredients industry present in 65 countries across the globe with over +4,200 employees. Our knowledgeable teams of industry, market and technical experts are each dedicated to a specific market within Life Sciences and Industrial Chemicals. We offer a lateral value chain of complementary products to more than +63,000 customers, supported by +2,800 principal relationships, creating a turnover of €4.2 billion (2023). Azelis Group NV is listed on Euronext Brussels under ticker AZE.
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, Azelis is a leader in sustainability. We believe in building and nurturing solid, honest and transparent relationships with our people and partners.
Impact through ideas. Innovation through formulation.
Important disclaimer:
This announcement may contain statement relevant to Azelis Group NV (the “Company”) and/or its affiliated companies (collectively “Azelis” or the “Azelis Group”) which are not historical facts and are hereby identified as “forward-looking statements”. Such forward looking statements, include, without limitation, those relating to the future business prospects, revenue, working capital, liquidity, capital needs, interest costs and income, in each case relating to the Azelis Group.
The forward-looking statements and estimates contained herein represent the judgement 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 future performance of the Azelis Group and should, therefore, be considered in light of various important factors that could cause actual results to differ materially from estimates or projections contained in the forward looking statements. These include without limitation economic and business cycles, the terms and conditions of the Azelis’ financing arrangements, foreign currency rate fluctuations, competition in Azelis’ key markets, acquisitions or disposals of businesses or assets and trends in Azelis’ principal industries or economies.
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 Belgian Financial Services and Markets Authority (“FSMA”) or on the Azelis website (www.azelis.com/investor-relations) from time to time, including the prospectus related to the admission to trading of the securities of Azelis Group NV on the regulated market of Euronext Brussels dated 14 September 2021. No undue reliance should be placed on such forward looking statements which are relevant only as of the date of this announcement. Except as required by the FSMA, Euronext or otherwise in accordance with applicable law, the Company undertakes no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events or otherwise.