In This Article:
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Revenue: EUR3.6 billion for the first nine months of 2024.
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Operating EBITA: EUR403 million, a 3% increase on a constant currency basis.
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Gross Profit: EUR303 million in Q3, a 13% growth on a constant currency basis.
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Gross Margin: Increased to 25.4% of revenue.
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Free Cash Flow: EUR65 million decrease compared to last year.
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Cash Conversion Margin: 73%, lower than the previous year.
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Working Capital Days: Increased from 66 to 68 days.
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Full-Time Employees: 7% increase, primarily due to acquisitions.
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EMEA Operating EBITA: EUR186 million, a 1% increase.
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Americas Gross Margin: Increased from 24.1% to 24.7%.
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Asia Pacific Gross Margin: Decreased from 23.3% to 22.3% due to acquisitions.
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Net Debt: Increased by EUR300 million.
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Leverage Ratio: 2.8 times EBITA, below the maximum level of 4.25.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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IMCD NV (IMCDY) reported a 13% EBITA growth on a constant currency basis in Q3 2024, driven by both acquisitions and organic growth.
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The company strengthened its position across all operating segments and regions through 12 acquisitions year-to-date.
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IMCD NV (IMCDY) achieved organic gross margin and EBITA growth in all three regions, with notable growth in the Americas and Asia.
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The company maintained a healthy M&A pipeline and continued its digital investments and sustainability programs.
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IMCD NV (IMCDY) reported a 7% increase in ForEx adjusted revenue and an 8% increase in gross profit compared to the previous year.
Negative Points
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The company faces ongoing market volatility with limited visibility beyond six weeks due to low inventory levels and just-in-time orders from customers.
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Free cash flow decreased by EUR65 million compared to last year, with a lower cash conversion margin of 73%.
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The working capital investment increased, primarily driven by higher business activity, leading to a slight increase in working capital days.
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The conversion margin decreased to 44.3%, which is 2.5% below the previous year.
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IMCD NV (IMCDY) remains cautious with predictions due to the volatile environment and changing geopolitical landscape.
Q & A Highlights
Q: Typically, Q4 is weaker than Q3 due to seasonality. Do you see any reason for a different trend this year? A: Hans Kooijmans, CFO: Q4 is indeed usually lighter and difficult to predict due to factors like factory closings and stock replenishment timing. Currently, customers are cautious, preferring just-in-time deliveries. Historically, December is weaker, but it helps reduce working capital. We are positive about October but remain cautious for the rest of the year.