In This Article:
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Gross Profit: EUR1,202 million.
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Operating EBITDA: EUR531 million, a 5% increase on a constant currency basis.
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Net Result: EUR278 million.
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Free Cash Flow: EUR450 million.
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Cash Earnings Per Share: EUR6.34.
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Revenue Growth: 8% increase on a ForEx adjusted basis.
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Gross Profit Margin: Increased to 25.4%.
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Operating EBITDA Margin: Decreased to 11.2%.
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Conversion Margin: Decreased to 44.2%.
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Net Debt: EUR1.3 billion.
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Leverage Ratio: 2.2 times EBITDA.
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Dividend Proposal: EUR2.15 per share, a 4% decrease from last year.
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Acquisitions: 12 completed, 2 signed; 11 in life sciences, 3 in industrials.
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Life Science Revenue: EUR2.5 billion.
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Industrial Revenue: Slightly above EUR2.2 billion.
Release Date: March 05, 2025
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) achieved a gross profit of EUR1,202 million and an operating EBITDA of EUR531 million, marking a 5% EBITDA increase on a constant currency basis compared to the previous year.
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The company completed 12 acquisitions in 2024, with a strong focus on life sciences, enhancing its portfolio and regional presence.
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IMCD NV (IMCDY) reported a healthy free cash flow of EUR450 million, leading to a cash earnings per share of EUR6.34.
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The company has a robust M&A pipeline and the financial means to execute targets, supported by a strong balance sheet and reasonable leverage levels.
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IMCD NV (IMCDY) continues to invest in digital and operational excellence, including the implementation of AI tools and enhancements to its digital commercial infrastructure.
Negative Points
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The company faced a challenging start to 2024 with a weak first quarter, impacting overall annual performance.
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Inflation and related cost increases could not be fully compensated, affecting the conversion margin, which decreased to 44.2% in 2024.
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In the EMEA region, macroeconomic factors negatively impacted performance, with inflation and geopolitical tensions contributing to a tougher business environment.
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The Asia-Pacific region experienced a decrease in gross profit margin due to lower-than-average margins from recent acquisitions.
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The company's dividend proposal reflects a 4% decrease compared to last year, indicating a cautious approach to maintaining balance sheet flexibility.
Q & A Highlights
Q: How did Q4 trends evolve, and what is the outlook for Q1 2025? A: Hans Kooijmans, CFO, noted that the second half of the year showed improvement compared to the first half, with the Americas performing strongly despite a tougher environment in EMEA. Valerie Diele-Braun, CEO, mentioned that while there has been continuous growth, geopolitical uncertainties make it difficult to predict long-term trends. The order book for Q1 2025 is strong, but visibility remains limited to about six weeks.