Specialty chemicals and and ingredients distributor IMCD N.V. has reported a gross profit growth of 6% to EUR 485.7 million in the first three quarters of the current fiscal. 

 

Compared with the first nine months of 2019, revenue increased by 1% from EUR 2,061.0 million to EUR 2,082.3 million (+3% on a constant currency basis). The revenue growth is the result of a combination of organic developments (-2%), the impact of the first time inclusion of companies acquired in 2019 and 2020 (+5%) and foreign currency rate impacts (-2%).

 

Operating EBITA increased by 8% to EUR 189.9 million while the cash earnings per share increased by 8% to EUR 2.46 as against EUR 2.26 in 2019.

 

Capital expenditure was EUR 5.4 million in 2020 compared with EUR 3.5 million in the first nine months of 2019 and mainly relates to investments in the ICT infrastructure, office improvements and technical and office equipment.

 

The company recently acquired 70% stake in Signet Excipients Private Limited, one of the leading distributors of excipients in India

 

Piet van der Slikke, CEO commented, "IMCD reports strong results in the first nine months with an operating EBITA growth of 8% (11% fx adjusted). Cash flow (+EUR 29 million) was strong with a cash conversion margin of 87.5%. During Q3, our gross profit increased by 5% (fx adjusted 10%) and our operating EBITA by 11% (fx adjusted 17%). All regions contributed to this outcome. We are very pleased with these results considering the challenging market conditions that we are still facing due to the continuing COVID-19 pandemic. In addition to strong operational performance in the third quarter, we also achieved successes in the further execution of our strategy, with acquisitions in Brazil, Finland and most notably India, where we reached an agreement to acquire 70% of the shares of Signet Excipients, thus increasing our presence in the high-growth APAC region and delivering on our ambition to strengthen our global business in the distribution of pharmaceutical excipients."

 

Despite the impact of the COVID-19 pandemic on current economic situation, the first nine months of 2020 were satisfactory. Unfortunately, with numbers of COVID-19 infections increasing again in multiple regions in recent weeks, the uncertainty about the duration of the COVID-19 crisis and its impact on the global economy continues. However, IMCD is a strong, resilient and well diversified business with a robust liquidity position and capital structure. Based on its performance in the first nine months of 2020, IMCD expects operating EBITA growth for the full year.