Global distributor of specialty chemicals and food ingredients Azelis Group has reported Q1 2026 revenue of EUR 1.0bn. This is a modest underlying decline that highlights a mixed demand environment across regions, partially offset by acquisition-driven growth.
On a constant currency basis, revenue slipped 0.7% year-on-year, but fell 5.2% on a reported basis, reflecting both a 3.9% organic decline and a 3.3% contribution from acquisitions. Performance was uneven: APAC delivered solid 4% organic growth, the Americas held broadly steady, while EMEA remained under pressure.
Profitability came under strain. Gross profit fell to EUR 246m, with margins narrowing to 23.7% as negative product mix—particularly in Asia Pacific—weighed on performance. Adjusted EBITA dropped to EUR 104m, with margin compression of 86 basis points, though cost discipline helped offset weaker revenues and supported a 42.4% conversion margin.
Cash generation stood out as a key strength. Free cash flow reached EUR 119m, pushing cash conversion to 113%, a sharp improvement and further evidence of the company’s asset-light model and operational resilience.
Leverage remained elevated but stable at 3.4x, with net debt reduced for a second consecutive quarter to EUR 1.5bn, down 3.7% since December 2025. Liquidity remained comfortable at EUR 799m.
Regionally, EMEA continued to drag on performance. Revenue fell 2.3% in constant currency to EUR 483m, driven by a sharp 9.5% organic decline, partly offset by acquisitions. Life Sciences held steady, but Industrial Chemicals declined 6.5% amid ongoing weakness.
The Americas showed relative stability, with revenue down just 1.2% in constant currency to EUR 351m. Life Sciences remained flat, while Industrial Chemicals continued to soften, particularly in CASE markets.
APAC was the only growth engine, rising 4% in constant currency to EUR 208m, supported by Life Sciences stability and strong Industrial Chemicals expansion. However, margin pressure intensified due to adverse mix effects and competitive conditions.
Across the group, Life Sciences proved more resilient than Industrial Chemicals, which continued to face subdued demand globally.
Despite weaker top-line momentum, Azelis emphasised disciplined execution and strong cash generation. Net working capital improved to 13.9% of sales, reflecting tighter management and continued optimisation efforts.
Looking ahead, the company struck a cautious tone. While some end markets are stabilising, geopolitical volatility remains a key risk, and management expects any near-term demand uplift to be more moderate than post-Covid cycles. Azelis reiterated its focus on cost control, balance sheet discipline, and cash generation as it navigates a still-uncertain recovery path.
CEO Anna Bertona underscored this stance, highlighting disciplined execution and customer support through ongoing disruption, while stressing innovation, profitability enhancement, and long-term positioning for recovery.
The broader outlook remains unchanged: structurally attractive markets, but limited visibility in the short term. Azelis is betting on resilience today to capture upside when demand conditions eventually improve.
