Chemical
IMCD reports rise in EBITA in the first half of 2020
EBITA increased by 7% from EUR 123.1 million.
- By ICN Bureau
| August 18, 2020
IMCD N.V., a leading distributor of speciality chemicals and food ingredients has reported a postive growth in its profit and sales during first half of the current year.
The company's revenue increased from EUR 1,398.1 million to EUR 1,411.2 million, an increase of 1% compared to the first half of 2019.
Gross profit increased by 7% from EUR 312.0 million in the first half of 2019 to EUR 332.7 million in the same period of 2020.
EBITA increased by 7% from EUR 123.1 million in the first half of 2019 to EUR 131.4 million in the same period of 2020 (+8% on a constant currency basis). The growth in operating EBITA is a combination of organic growth and the impact of the first time inclusion of acquisitions completed in 2019 and 2020.
Capital expenditure was EUR 3.6 million in the first half of 2020 compared to EUR 2.2 million in the same period of 2019 and mainly relates to investments in ICT infrastructure, office furniture and technical and office equipment.
Revenue from APAC saw an increase by 21% YoY whereas sales dropped in EMEA and Americas region during first half of the year.
Commenting on the results, Piet van der Slikke, CEO said, "IMCD’s results in the first six months were strong with a gross profit and operating EBITA growth of both 8% (FX adjusted). Although the market circumstances due to the COVID-19 crisis were challenging, in Q2 we were able to improve our operating EBITA by 4% due to a strong performance in the Americas and APAC.
At this moment, the economic consequences of the pandemic are uncertain. Therefore, it is difficult to predict how the rest of the year will develop. The uncertainty around the duration of the COVID-19 crisis and its impact on the global economy makes it impossible to give a near-term trading outlook, said the CEO.
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