IMCD boasts 15% profit growth during first three quarters

Speciality chemicals and food ingredients distributor IMCD N.V. (AMS: IMCD) boasted strong performance fundamentals during the first nine months of the year.

The Group reported an on-year gross profit bounce of 15% to EUR 457.3 million, while operating EBITA jumped 12% to EUR 175.7 million. The Company added that its net result before amortisation and non-recurring items also rose 10% to EUR 120.1 million,

IMCD shareholders fared similarly well, with cash earnings per share increasing 15% to EUR 2.26.

In addition to its impressive fundamentals, the Company reminded stakeholders of their acquisitions: the food ingredients business of Matrix on the 30th of August, and Monachem and Addpol on the 18th of September.

Further, IMCD strengthened its pharma activities by agreeing to acquire shares in DCS Pharma AG and 57% of the shares in Whawon Pharm Co. Ltd.

Elsewhere in drug and chemical news, Amryt Pharma Holdings Ltd (LON: AMYT), Curetis NC (AMS: CURE) and Integumen PLC (LON: SKIN) also boasted revenue growth.

IMCD comments

Piet van der Slikke, CEO, stated,

“The first nine months resulted in an EBITA growth of 12% and a cash earnings per share growth of 15% versus the same period of last year. Both the Americas and Asia-Pacific performed satisfactorily whereas EMEA ‘s results were disappointing (EBITA -2%) caused by lower demand. Despite this, we are confident that we will continue to achieve our medium term targets on organic growth and we are positive about the acquisitions we have completed so far (Monachem and Matrix) and those we expect to complete this year (DCS, Switzerland and Whawon, South Korea).”

Investor notes

The Company’s shares bounced 3.06% or 2.20p to 74.15p per share 12/11/19 13:05 CET. The Group’s dividend yield stands at 1.11%, their market cap is €3.78 billion.

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Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.