Belgium's Azelis Q3 revenue rises on volume growth
Overview
Belgium specialty chemicals distributor's Q3 revenue rose 8.5% yr/yr in constant currency, driven by organic growth
Adjusted EBITA for Q3 up 14.6% yr/yr, mainly from organic growth
Company recorded EUR 350 mln non-cash goodwill impairment in Americas
Outlook
Azelis targets positive organic adjusted EBITA growth for full year 2026
Company aims for mid to high single-digit annual gross profit growth in the medium term
Company says near-term market conditions limit visibility on pace of recovery
Result Drivers
INDUSTRIAL CHEMICALS GROWTH - Strong organic growth in Industrial Chemicals segment drove overall group revenue
PRICING AND VOLUME - Gross profit margin expansion attributed to volume growth and constructive pricing
COST DISCIPLINE - Conversion margin expanded due to continued cost discipline while pursuing growth
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
9M Revenue | EUR 3.29 bln | ||
9M Adjusted EBITA | EUR 347 mln | ||
9M Adjusted EBITA Margin | 10.50% | ||
9M Free Cash Flow | EUR 190 mln | ||
9M Gross Profit | EUR 786 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the diversified industrial goods wholesale peer group is "buy"
Wall Street's median 12-month price target for Azelis Group NV is €14.00, about 10.2% above its October 21 closing price of €12.70
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)