IMCD N.V. Q1, FY2022 revenue increased by 37% to EUR 1,106.5 million, compared with EUR 809.9 million in the same period in 2021. On a constant currency basis, revenue growth was 32%, consisting of organic growth (+25%) and the impact of the first time inclusion of companies acquired in 2021 and 2022 (+7%). All regions contributed to the organic revenue growth.

 

Gross profit, defined as revenue less cost of materials and inbound logistics, increased by 40% from EUR 197.6 million in the first three months of 2021 to EUR 277.4 million in 2022. On a constant currency basis, the increase in gross profit is 36%, consisting of organic growth of 31% and growth as a result of the first time inclusion of acquisitions completed in 2021 and 2022 of 5%.

 

Gross profit in % of revenue increased by 0.7%-point from 24.4% in the first three months of 2021 to 25.1% in 2022. The gross profit margin increase is the result of changes in local market circumstances, gross margin improvement initiatives, the impact of newly acquired businesses, currency exchange rate developments and fluctuations in the product mix.

 

Operating EBITA increased by 59% from EUR 88.2 million in the first three months of 2021 to EUR 139.9 million in the same period of 2022. On a constant currency basis, operating EBITA increased by 54%. The growth in operating EBITA, on a constant currency basis, is a combination of organic growth and the first time inclusion of companies acquired in 2021 and 2022. Operating EBITA in % of revenue increased by 1.7%-point from 10.9% in the first three months of 2021 to 12.6% in 2022.

 

The conversion margin, defined as operating EBITA in percentage of gross profit, increased from 44.6% in the first three months of 2021 to 50.4% in 2022. The increase in conversion margin is primarily driven by improved gross profit margins.

 

Piet van der Slikke, CEO commented, "IMCD’s first-quarter results showed again strong growth (Operating EBITA +59%, vs Q1 2021). We continue to benefit from strong demand and increasing prices. Markets and supply chains remain unpredictable resulting temporarily in higher working capital requirements. We were able to successfully complete acquisitions in all regions and are very pleased with the projects on further expanding our product portfolio and digital initiatives."

 

IMCD operates in different, often fragmented market segments in multiple geographic regions, connecting many customers and suppliers across a very diverse product range. In general, results are impacted by macroeconomic conditions and developments in specific industries. Results can be influenced from period to period by, among other things, the ability to maintain and expand commercial relationships, the ability to introduce new products and start new customer and supplier relationships and the timing, scope and impact of acquisitions.

 

IMCD’s consistent strategy and resilient business model has led to successful expansion over the years and IMCD remains focused on achieving earnings growth by optimising its services and further strengthening its market positions. IMCD sees interesting opportunities to further increase its global footprint and expand its product portfolio both organically and by acquisitions.

 

Based on the performance in the first three months of 2022 and the strong fundamentals of its business, IMCD expects operating EBITA growth in 2022.