Specialty chemicals distributor Azelis delivered robust cash flow growth in 2025, navigating a turbulent market environment with disciplined cost management and strategic acquisitions.
The Group reported full-year revenue of €4.1 billion, up 1.3% in constant currency but down 2.4% on a reported basis. Fourth-quarter revenue reached €937 million, a 1.3% constant-currency decline, driven by a 4.9% organic contraction, partially offset by 3.6% growth from recent acquisitions.
Gross profit for the year hit €968 million, translating to a 23.6% margin, slightly lower than last year due to a negative mix effect. Azelis fully implemented its structural cost-savings plan, exceeding the previously announced €20 million target.
Adjusted EBITA fell 12.7% to €411 million, with a 117 bp margin reduction, though cost discipline helped maintain a conversion margin of 42.4%. Net profit slid 40.1% to €113 million, reflecting lower operating profit, reduced financial income from acquisition-related liabilities, and a higher effective tax rate.
Free cash flow surged 29.2% to €442 million, producing a 106% cash conversion ratio, the second-highest in Azelis’s history. The Group completed four acquisitions in 2025, adding over €110 million in combined revenue from the prior year.
Leverage ended the year at 3.3x, down from a peak of 3.4x in September, with management reaffirming de-leveraging as a key priority. Sustainability credentials strengthened with a CDP upgrade to A-.
Looking ahead, Azelis remains cautiously optimistic. “Although the timing of market recovery remains uncertain, we are confident that Azelis's strategy and business model allow us to navigate the current volatility whilst protecting our ability to generate sustainable cash flow,” management said.
Group CEO Anna Bertona highlighted the company’s resilience: "In 2025, despite a difficult environment, we continued to make strides in executing on our strategy to be the reference in our industry for our customers and principals. During the year, we won eight innovation awards across the Group, highlighting our commitment to provide the most innovative solutions to both our customers and principals.
"We also continue to make progress in enhancing operational efficiency via our digital programmes. Furthermore, we improved our CDP ranking from B to A-, which, together with our strong performance across multiple other ESG assessments, underscores our commitment to sustainability. These foundations give me confidence in our ability to navigate ongoing volatility and continue creating sustainable long-term value for all our stakeholders.
"The strong cash flow growth that we delivered in a challenging market is testament to Azelis's robust business model."
