CHEMICAL DISTRIBUTION
INTO THE FOLD RESULTS • IN A TURBULENT TRADING ENVIRONMENT, GROWTH THROUGH ACQUISITION CAN PAY OFF, AS IMCD’S RESULTS FOR 2019 AMPLY ILLUSTRATE IMCD GROUP HAS reported 2019 revenues of €2.69bn, up 13 per cent on the 2018 figure, as a result largely of the first-time inclusion of acquisitions in the group’s figures. Revenues from continuing operations actually fell by 1 per cent. Macroeconomic circumstances were, though, offset by the addition of new supplier relationships and the expansion of existing relationship, and increasing customer penetration. Similarly, operating EBITDA increased by 11 per cent to €224.8m, a combination of organic growth, the impact of recent acquisitions and the initial impact of the new IFRS 16 lease accounting standard.
PIET VAN DER SLIKKE: IMCD’S MODEL SHOWED ITSELF RESILIENT TO CHALLENGING MARKETS
Commenting on the results, IMCD’s CEO Piet van der Slikke says: “Despite more challenging market conditions, the results of 2019 demonstrate consistent strong performance with exceptional cash generation. IMCD’s diversified business model showed itself resilient and we took important steps in the diligent execution of our long-term growth strategy. “Through selective acquisitions we strengthened our global positions in pharmaceuticals, food and advanced materials, and we are excited about the recent addition of the attractive South Korean and Colombian markets to our geographical coverage,” van der Slikke continues. “Entering the year of IMCD’s 25th anniversary in its present form, we feel proud of the success achieved and remain well positioned to deliver further growth to our business partners and stakeholders.’’
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BETTER IN AMERICA Of IMCD’s three regional operating divisions, the Americas was the star performer over the year, with revenues up 22 per cent at €983.0m and operating EBITDA up 30 per cent at €77.8m. While there was some impact from positive currency movements, the main element behind this growth was the acquisition of ET Horn in 2018, which was fully integrated into the IMCD US operation in late 2019, and of Unired Químicas and DCS in 2019. While the impact of the Unired deal on the 2019 figures was limited – the deal closed in late November and its revenues for 2018 were only €7m – its position in the distribution of speciality chemicals and ingredients to the pharmaceutical, food and personal care markets, together with its location in Colombia make it an important step forward for IMCCD. Results from the Asia-Pacific division were also strong, with revenue up 17 per cent at €392.0m and operating EBITDA 14 per cent up at €35.7m, as activities in Australia and New Zealand, which together account for around half of the region’s income, continued to deliver solid results and healthy cash flows. Furthermore, operations in India and Indonesia delivered double-digit growth, largely as a result of new supplier relationships, additional products and expansion into new market segments. Operations in China are still growing, although at a slower pace than before. Investments in start-up activities in Japan, Thailand and Vietnam also produced considerable revenue growth. The Europe, Middle East and Africa (EMEA) region fared less well, with revenue up 6 per cent at €1.31bn but operating EBITDA fell by 1 per cent to €126.3m. Organic revenue dropped by 4 per cent and top-line growth was delivered by acquisitions made during 2018 and 2019, particularly that of Velox, which has now been fully integrated. IMCD notes that its existing industrial business in EMEA was “affected by the challenging macroeconomic market circumstances”, a factor that is expected to continue to present difficulties during the coming year. www.imcdgroup.com
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