In This Article:
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Revenue: EUR4.2 billion for the full year 2024, a 2.6% increase in constant currency.
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Organic Growth: 2.3% organic growth in H2 2024, reversing part of the decline in H1.
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Gross Profit: EUR1 billion for the year, with a 77 basis points increase in gross margin to 24.5%.
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Adjusted EBITA: EUR471 million for the year, a 0.9% increase, with a stable margin of 11.2%.
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Net Profit: EUR189.5 million, stable compared to the prior year.
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Free Cash Flow: EUR342 million, impacted by higher working capital investment.
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Acquisitions: Eight acquisitions completed in 2024, contributing over EUR140 million in 2023 revenues.
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Net Debt Leverage: Ended the year at 2.9, within the covenant of 4.5.
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Liquidity Position: EUR804 million in cash and unused credit facilities.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Azelis Group NV (AZLGF) reported a steady improvement in results throughout 2024, with organic growth turning positive in Q3 and remaining positive in Q4.
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The company's business model proved resilient, maintaining a stable EBITA margin of 11.2% despite cost inflation.
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Revenue increased by 4.3% in Q4, with a total revenue of EUR4.2 billion for the full year, marking a 2.6% increase in constant currency.
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Azelis Group NV (AZLGF) completed eight acquisitions in 2024, contributing to its strategic growth and diversification.
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The company launched Impact 2030, an ambitious sustainability agenda, and won five industry awards for innovative formulations, highlighting its commitment to innovation and sustainability.
Negative Points
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The market remained volatile, with improvements varying across regions and end markets, driven by geopolitical uncertainty.
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Industrial Chemicals saw a decline of 1.7% for the full year, indicating challenges in this segment.
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Net profit for the year was stable at EUR189.5 million, showing no significant growth compared to the prior year.
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Free cash flow conversion decreased to 72.1% in 2024, impacted by higher working capital investments.
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Leverage increased to 2.9x, approaching the company's covenant limit, which may constrain future M&A activities.
Q & A Highlights
Q: You've signaled that the order book has seen a positive build-up into this first quarter. Should we expect a further improvement in the organic GP growth versus 4Q levels? Also, how do you see gross margins evolving in 2025 if industrials were to come back? A: We have good visibility on the rest of the quarter, and it looks positive. Compared to Q4, there will be an improvement due to seasonality. Regarding gross margins, our diversified portfolio means that the impact will depend on which segments improve. Generally, industrial margins are lower than Life Sciences.