BRUSSELS: Speciality chemicals and food ingredients distributor Azelis Group NV (AZE.BR) on Thursday reported a 34.3% surge in free cash flow for the first nine months of 2025, driven by disciplined working capital management amid persistent market uncertainty.
Free cash flow rose to EUR 293.2 million ($309.8 million) for the nine-month period ending September 30, up from the prior year, as the company prioritized cash generation and reduced investments in working capital. The group’s cash conversion ratio also expanded by 29 percentage points to 87.1%, underscoring its focus on cash discipline.
Despite the strong cash performance, Azelis’s revenue saw a modest decline in the face of market headwinds. Revenue for 9M 2025 totaled EUR 3.2 billion, a 0.8% decline year-on-year. However, on a constant currency basis, revenue was up 2.1%, buoyed by a 2.7% contribution from acquisitions, which offset a 0.6% organic decline.
Adjusted earnings before interest, tax, and amortization (EBITA) for the period fell 9.9% to EUR 332.6 million, resulting in an adjusted EBITA margin of 10.5%. The margin contraction was attributed to slower revenue development and only a partial benefit from ongoing cost-saving measures, which the company expects to ramp up in the fourth quarter.
“Our performance over the first nine months of 2025 reflects both the current headwinds in our industry and the decisive actions we are taking to adapt our organisation for long-term success,” said Anna Bertona, Group CEO.
Bertona highlighted the increase in free cash flow as “further proof of the strength and resilience of our asset-light business model.”
Azelis also announced a significant management change, with Group CFO Thijs Bakker stepping down after nearly a decade to pursue new professional opportunities. Bakker will remain focused on delivering the 2025 financial results and ensuring a seamless transition. The company expects to announce his successor shortly.
During the nine-month period, Azelis completed four acquisitions with a combined prior-year annual revenue exceeding EUR 110 million. The company’s leverage ratio stood at 3.4x at the end of September 2025.
Azelis reaffirmed its focus on executing its strategy to benefit from attractive long-term industry fundamentals and managing costs while market visibility remains limited.
(US$1 = 0.9465 euros)