AMSTERDAM: IMCD N.V., a global leader in the distribution and formulation of speciality chemicals and ingredients, announced its full year 2023 results today. The company reported a gross profit of EUR 1,123 million, a 2% increase on a constant currency basis, and a free cash flow of EUR 554 million, a 28% increase from 2022.
However, the company also saw a decline in operating EBITA and net result for the year by 7% and 6% respectively, as well as a lower dividend proposal of EUR 2.24 per share.
The company attributed the decline in profitability to the challenging geopolitical and macroeconomic conditions, including increased volatility in the customer demand, that impacted its results in some regions and segments. However, the company also highlighted its consistent strategy and resilient business model that enabled it to maintain and expand its commercial relationships, introduce new products and services, and execute strategic acquisitions.
IMCD operates in different, often fragmented market segments in multiple geographic regions, connecting many customers and suppliers across a very diverse product range. The company said that its results can be influenced from period to period by various factors, such as macroeconomic conditions and developments in specific industries.
IMCD remains focused on achieving earnings growth by optimising its services and further strengthening its market positions. The company said that it sees interesting opportunities for further growth and value creation in the speciality chemicals and ingredients market, both organically and through acquisitions.
Valerie Diele-Braun, CEO: “Following a year of exceptional growth, 2023 was a year characterised by challenging market conditions and reduced demand. Despite these challenges, IMCD continued to be resilient and delivered healthy cash flows whilst progressing strongly on our omnichannel digital solutions, geographic expansion and M&A. Revenues reached EUR 4.4 billion, with an operating EBITA of EUR 515 million. Free cash flow was EUR 554 million, an increase of 28% compared with last year. Our dedicated teams remain focused on strategic business opportunities, fortifying our foundation for sustainable future growth.”
IMCD N.V. has acquired 70% of Valuetree Ingredients Private Limited