IMCD N.V. ("IMCD" or "Company"), a leading distributor of speciality chemicals and ingredients, today announces its first half year 2021 results.

HIGHLIGHTS

Gross profit growth of 23% to EUR 410.9 million (+28% on a constant currency basis)
Operating EBITA increase of 46% to EUR 192.3 million (+52% on a constant currency basis)
Net result before amortisation and non-recurring items increase of 52% to EUR 137.5 million (+57% on a constant currency basis)
Cash earnings per share increased by 44% to EUR 2.43 (first half of 2020: EUR 1.69) In the second quarter of 2021, IMCD completed the acquisitions of Siliconas in Colombia, Andes Chemical in the US, Colombia and Peru and Yuanhe Chemicals in China

Piet van der Slikke, CEO: "We are reporting very strong results for the first six months of the year. After a promising start of the year, the positive momentum continued into the second quarter and our teams across all regions were able to benefit optimally from the strong product demand. This has resulted in double digit growth numbers, with gross
profit being up 23% (+28% on a constant currency basis), and operating EBITA being up 46% (+52% on a constant currency basis). All regions achieved substantial organic growth and contributed to the overall positive results. It
remains to be seen how the pandemic will influence the current economic conditions, but we are optimistic that we can further execute our growth strategy successfully in the remainder of the year."

go for more to
file:///C:/Users/Pappa/Downloads/Press%20Release_IMCD%20first%20half%20year%202021%20results.pdf

Revenue
In the first half of 2021, revenue increased by 19% to EUR 1,673.9 million, compared to the same period of 2020. On a constant currency basis, the increase in revenue is 23%, consisting of organic growth of 15% and the impact of the
first-time inclusion of companies acquired in 2020 and 2021 of 8%.

Gross profit
Gross profit, defined as revenue less costs of materials and inbound logistics, increased by 23% from EUR 332.7 million in the first half of 2020 to EUR 410.9 million in the same period of 2021. On a constant currency basis, the
gross profit growth was 28%, consisting of organic growth of 19% and the impact of the first time inclusion of businesses acquired in 2020 and 2021 of 9%.
Gross profit in % of revenue increased by 0.9%-point from 23.6% in the first half of 2020 to 24.5% in 2021. The gross
profit margin increase is the result of changes in local market conditions, gross margin improvement initiatives, the impact of newly acquired businesses, currency exchange rate movements and fluctuations in the product mix.

Operating EBITA
Operating EBITA increased by 46% from EUR 131.4 million in the first half of 2020 to EUR 192.3 million in the same
period of 2021. On a constant currency basis operating EBITA increased by 52%. The growth in operating EBITA, on
a constant currency basis, is a combination of organic growth and the first time inclusion of companies acquired in 2020 and 2021.
The operating EBITA in % of revenue increased by 2.2%-point from 9.3% in the first half of 2020 to 11.5% in 2021.
The conversion margin, defined as operating EBITA as a percentage of gross profit, increased by 7.3%-point from 39.5% in the first half of 2020 to 46.8% in 2021. The increase in conversion margin is the result of substantial organic EBITA growth, whereby organic gross profit growth more than compensated organic own cost growth, combined with
a positive impact of acquisitions made.

Cash flow and capital expenditure
In the first half of 2021, free cash flow was EUR 118.1 million compared with EUR 76.3 million in the first half of 2020 (+55%).
The cash conversion margin, defined as free cash flow as a percentage of adjusted operating EBITDA (Operating
EBITDA adjusted for non-cash share-based payments and lease payments), was 61.0% compared with 57.4% in the first half of 2020. The increase in free cash flow and cash conversion margin in 2021 is the balance of higher operating
EBITDA, higher investments in net working capital and less capital expenditures.
The investment in net working capital (sum of inventories, trade and other receivables minus trade and other payables)
in the first half of 2021 was EUR 73.3 million compared with EUR 53.1 million in the first half of 2020. Working capital investments were primarily driven by increased business activities. As at the end of June 2021, net working capital in days of revenue was 56 days (June 2020: 60 days).
Capital expenditure was EUR 2.3 million in the first half of 2021 compared with EUR 3.6 million in the same period of 2020 and mainly relates to investments in the ICT infrastructure, office improvements and technical and office
equipment.

Net debt
As at 30 June 2021, net debt was EUR 816.8 million compared with EUR 739.3 million as at 31 December 2020.
The leverage ratio (net debt/operating EBITDA ratio including full year impact of acquisitions) as at the end of June 2021, was 2.3 times EBITDA (31 December 2020: 2.3). Calculated on the basis of the definitions used in the IMCD loan documentation, the leverage ratio at the end of June 2021 was 1.6 times EBITDA (31 December 2020: 1.6), which
is well below the maximum of 3.5 as allowed under the loan documentation.
The leverage development in the second quarter of 2021 is, among other things, influenced by a dividend payment of EUR 58.1 million in June.

tijd 09.12
De AEX 763,54 +3,46 +0,46% en IMCD straalt er over op EUR 158,55 +10,85 vol. 17.840