IMCD N.V. (IMCDY) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, welcome to the IMTD Half-Year 2025 Results Conference Call hosted by Marcus Jordan, CEO, and Hans Goijmans, CFO. For the first part of this call, all participants will be in listen-only mode. And afterwards, there will be a question and answer session. If you wish to ask a question, please press key pound five on your telephone keypad. I would now like to give the floor to Marcus Jordan. Mr. Jordan, please go ahead. Thank you very much, Alba. Good morning to you all, and a warm welcome to our 2025 half-year result analyst call. I'm Marcus Jordan, and I'm here today with our CFO, Hans Coymans, for the 2025 half-year results, which we published in a press release earlier this morning. The first half of 2025 was generally characterized by global economic uncertainty and tariff discussions across all regions, which had a significant impact on customer behavior. When looking at our numbers in the first half of 2025, they can be summarized as this having a good start to the year, as you saw in the Q1 numbers. And after this, we saw demand generally softening in the second quarter. You will find a summary of our financial results on slide four. Gross profit is up to 634 million euros, plus 7% on a constant currency basis. EBITR is up to 275 million euros, up 4% on a constant currency basis. Our free cash flow of 173 million euros was lower compared with the first half of 2024, which was mainly due to higher inventory levels. These higher inventory levels are a result of the ongoing uncertainty in the market, and as I mentioned before, customer demand generally softening during the second quarter. This has resulted in the inventory levels we currently see being too high, and we are actively working to reduce these. Our CFO, Hans Coymans, will discuss working capital i...