Azelis delivered total revenue of EUR 2.1bn, representing growth of 6.1% compared to H1 2022, as the continued weakness in the Americas was mitigated by robust performance in EMEA and Asia Pacific. On a constant currency basis, revenue growth was 8.0% during the period. Weaker demand compared to the exceptionally strong growth in H1 2022 is reflected in the 4.8% organic revenue contraction for the Group. Revenue growth contribution from acquisitions was 12.8% during the period, while FX translation represented a 1.9% headwind.

 

Demand continued to hold up well in Life Sciences, with revenue increasing 9.0% year-on-year (10.8% in constant currency), supported by robust performance in Pharma across all regions, stable demand in Food & Nutrition in EMEA and Asia Pacific, and revenue contribution from recent mandate gains. Industrial Chemicals increased by 1.7% year-on-year (3.7% in constant currency), with contribution from recent acquisitions mitigating the continued weakness in Industrial Chemicals, especially in the Americas.

 

Comment from Dr. Hans Joachim Müller, CEO: "Our results for H1 2023 reflect the current trends in the industry, which is undergoing a normalization following very strong growth in 2021-2022. The group's diverse footprint allows us to mitigate the weaker demand in some of our markets, notably in the Americas. Furthermore, our asset-light, defensive business model allows us to generate strong cashflows despite the pressure on our top line.

 

While the current volatility in our markets has raised the risk in our outlook, at present, the Group remains on track to achieve its midterm annual revenue growth guidance of 8-10%, subject to currency fluctuation, and is confident of delivering 10-15 bps adjusted EBITA margin expansion for the full year 2023.

 

Notwithstanding the current challenges in our industry, we continue to execute on our growth strategy. In H1, we expanded our footprint with the acquisition of six companies that significantly strengthen our lateral value chain. We are also more determined than ever to strengthen the relationships with our principals, as reflected in multiple mandate wins during the period. Overall, we remain focused on achieving our long-term strategy to become the reference innovation solutions provider in specialty chemicals and food ingredients distribution.

 

Consistent with this long-term strategy, we are delighted to announce that Anna Bertona, current President & CEO of Azelis EMEA, will be succeeding as Group CEO when I retire at the end of the year. Anna brings a wealth of experience, and equally important, represents continuity in our journey as a company. Having successfully led our EMEA business since 2016, she not only embodies our mission, but also drives our values as Executive Committee sponsor for our Sustainability agenda. I have every confidence that Anna will successfully lead the Group to the next stage of its growth journey."

 

Our strategy of driving growth is underpinned by a constantly strengthening lateral value chain, supported by continuous investments in innovation capabilities and digitalization, as well as a commitment to sustainability to create long-term value. Management is confident that it will deliver 8-10% of revenue growth and 10-15 bps adjusted EBITA margin expansion annually in the medium-term.

 

While the current volatility in our markets has raised the risk in our outlook, at present, the Group remains on track to achieve its midterm annual guidance for the full year 2023, subject to currency fluctuation.