Azelis Delivers 11% Free Cash Flow Growth in H1 2025

ANTWERP, Belgium--(BUSINESS WIRE)--Regulatory News:

Azelis (Brussels:AZE):

Highlights H1 2025

• Revenue of EUR 2.2bn in H1 2025, representing year-on-year increase of 0.6% (+3.3% on a constant currency basis), with 1.2% organic revenue growth and 2.2% revenue growth contribution from acquisitions offsetting the negative F/X impact during the period.
• Gross profit of EUR 515m resulting in gross profit margin of 23.9%. The 68 bp gross margin contraction reflects the mix effect from higher growth contribution from Industrial Chemicals and the Group's less mature businesses.
• Adjusted EBITA of EUR 234m results in adjusted EBITA margin of 10.9%, and conversion margin of 45.5%. The EBITA and conversion margins in H1 2025 do not yet reflect the full benefit of cost-saving measures announced at the beginning of Q2.
• Net profit of EUR 85m represents a decline of 14.6% over the prior year, driven by the lower operating profit.
• Free cash flow increased by 10.8% over the prior year to EUR 151m despite the lower EBITDA. Cash conversion expanded by more than 10 percentage points to 63.8% underscoring the resilient, cash-generative nature of the business model.
• Leverage ratio was 3.1x at the end of June 2025, versus 2.9x at the end of December 2024, and 2.7x at the end of June 2024. The step-up in the leverage ratio reflects the slower EBITDA evolution and the impact of deferred payments made in H1 2025.
• Two acquisitions were completed in H1 2025, and a third was announced shortly after the close of the period. The three companies had combined annual revenue of over EUR 100m in 2024.
• The Group is focused on managing its costs whilst uncertainty persists in the near-term, whilst continuing to execute on its medium-term strategy to capture the benefits of an attractive industry.

(in millions of €)	H1 2025	H1 2024	Change	Constant currency
Life Sciences	1,349.8	1,348.4	0.1%	2.6%
Industrial Chemicals	809.2	797.3	1.5%	4.6%
Revenue	2,158.9	2,145.7	0.6%	3.3%
Gross profit	515.1	526.5	-2.2%	0.3%
Gross profit margin	23.9%	24.5%	-68 bp	-75 bp
Adjusted EBITDA^1	256.6	274.8	-6.6%	-4.1%
Adjusted EBITDA margin	11.9%	12.8%	-92 bp	-95 bp
Adjusted EBITA^1	234.5	254.0	-7.7%	-5.3%
Adjusted EBITA margin	10.9%	11.8%	-98 bp	-101 bp
Conversion margin^1	45.5%	48.2%	-273 bp	-273 bp
Net profit	85.5	100.1	-14.6%	-15.7%
Cash earnings per share^1	0.51	0.61^2	-15.8%	-18.4%
Earnings per share	0.34	0.39	-11.9%	-18.6%
Operating cash flow	176.5	153.4	15.1%
Free cash flow^1	151.2	136.5	10.8%
FCF conversion ratio^1	63.8%	53.3%	1055 bp
Net working capital / revenue normalised for acquisitions^1	15.8%	15.4%	36 bp
Leverage ratio^1	3.1x	2.7x	+ 0.4x
Refer to the definitions of alternative performance measures in the Group's Integrated Report The H1 2024 Cash EPS previously reported was €0.56. Refer to the revised definition in the Integrated Report 2024.

Comment from Anna Bertona, Group CEO: "Our results in H1 2025 reflect the resilience of our business model and the dedication of our teams, allowing us to navigate short-term volatility whilst continuing to position Azelis as the industry reference in our focus end markets.

Despite the impact of the growing trade and geopolitical uncertainty around the world, we remain confident that we have the right strategy to ensure that we capture the opportunities created by the volatility in the industry and emerge stronger than before.

We are making good progress on aligning our resources with end-market demand. We remain focused on delivering further on our cost savings programme as we move through the remainder of the year. Furthermore, our asset-light, flexible business model allows us to continue focusing on profit and cash generation alongside our growth ambitions through the cycle."

Conference call

The management of Azelis invites you to a conference call and live webcast at 09:00 CET to discuss our H1 2025 results and current operating trends. Please click here to view the webcast.

OPERATIONAL REVIEW

Headline results

Q2 2025	Q2 2024	Organic	Total	(in millions of €)	H1 2025	H1 2024	F/X	M&A	Organic	Total
483.2	457.1	5.1%	5.7%	EMEA	979.1	917.2	-2.2%	4.2%	4.8%	6.7%
376.0	415.3	-3.2%	-9.5%	Americas	759.7	786.7	-3.2%	0.2%	-0.4%	-3.4%
201.9	222.2	-5.1%	-9.1%	Asia Pacific	420.1	441.8	-2.7%	1.5%	-3.6%	-4.9%
1,061.1	1,094.6	-0.1%	-3.1%	Group revenue	2,158.9	2,145.7	-2.7%	2.2%	1.2%	0.6%
122.6	119.4	2.3%	2.6%	EMEA	248.8	240.6	-1.8%	3.1%	2.1%	3.4%
89.7	101.4	-5.2%	-11.5%	Americas	181.9	193.7	-3.1%	0.2%	-3.1%	-6.0%
39.0	45.1	-11.8%	-13.4%	Asia Pacific	84.4	92.2	-2.7%	3.6%	-9.5%	-8.5%
251.3	265.9	-3.0%	-5.5%	Group gross profit	515.1	526.5	-2.4%	2.1%	-1.8%	-2.2%
61.0	62.3	-1.8%	-2.0%	EMEA	123.2	128.1	-2.1%	2.8%	-4.6%	-3.9%
44.9	53.3	-9.7%	-15.7%	Americas	88.1	98.5	-3.0%	0.2%	-7.8%	-10.6%
18.7	22.6	-19.2%	-17.1%	Asia Pacific	42.6	44.8	-2.3%	6.1%	-8.7%	-4.9%
114.8	129.7	-9.5%	-11.5%	Group adjusted EBITA^1	234.5	254.0	-2.4%	2.6%	-7.9%	-7.7%
Total adjusted EBITA includes holding companies.

Azelis delivered revenue of EUR 2.2bn in H1 2025, representing year-on-year growth of 0.6%. Revenue during the period was driven by a 1.2% organic revenue growth and a 2.2% growth contribution from acquisitions, offset by a 2.7% negative impact from F/X translation. In Q2, revenue declined by 3.1% versus the prior year, as the 5.1% F/X headwind offset stable organic revenue growth and a 2.1% revenue growth contribution from acquisitions.

In H1 2025, revenue in Life Sciences was EUR 1.3bn, in line with the prior year (+2.6% in constant currency), and revenue in Industrial Chemicals increased by 1.5% to EUR 809m (+4.6% in constant currency). During the period, we completed the acquisition of Solchem, strengthening our presence in the Spanish nutraceuticals market, and S Amit Group, reinforcing our footprint in India.

EMEA

Q2 2025	Q2 2024	Change	(in millions of €)	H1 2025	H1 2024	Change	Constant currency
483.2	457.1	5.7%	Revenue	979.1	917.2	6.7%	9.0%
122.6	119.4	2.6%	Gross profit	248.8	240.6	3.4%	5.2%
25.4%	26.1%	-76 bp	Gross profit margin	25.4%	26.2%	-82 bp	-94 bp
66.4	66.9	-0.7%	Adjusted EBITDA	133.4	136.6	-2.3%	-0.1%
13.7%	14.6%	-89 bp	Adjusted EBITDA margin	13.6%	14.9%	-126 bp	-128 bp
61.0	62.3	-2.0%	Adjusted EBITA	123.2	128.1	-3.9%	-1.8%
12.6%	13.6%	-100 bp	Adjusted EBITA margin	12.6%	14.0%	-139 bp	-141 bp
49.8%	52.2%	-238 bp	Conversion margin	49.5%	53.2%	-374 bp	-359 bp

EMEA revenue increased by 6.7% year-on-year (+9.0% in constant currency) to EUR 979.1m in H1 2025, driven by organic revenue growth of 4.8% and revenue growth contribution from acquisitions of 4.2%, partially offset by a 2.2% negative impact from F/X translation. In Q2, revenue increased by 5.7% year-on-year, as organic growth accelerated to 5.1%, driven by continued growth in volumes and constructive pricing across most end markets in both Life Sciences and Industrial Chemicals.

Gross profit increased by 3.4% year-on-year (+5.2% in constant currency) to EUR 248.8m, translating to a gross margin of 25.4% for the period. The 82 bp gross margin contraction reflects negative product mix effects primarily within Industrial Chemicals, as well as dilution from recent acquisitions. Adjusted EBITA decreased by 3.9% to EUR 123.2m, resulting in a 139 bp adjusted EBITA margin contraction, as the benefit of the cost savings plan in the region is not yet fully reflected in the results for the period. Conversion margin in H1 2025 was 49.5%.

Americas

Q2 2025	Q2 2024	Change	(in millions of €)	H1 2025	H1 2024	Change	Constant currency
376.0	415.3	-9.5%	Revenue	759.7	786.7	-3.4%	-0.2%
89.7	101.4	-11.5%	Gross profit	181.9	193.7	-6.0%	-2.9%
23.9%	24.4%	-55 bp	Gross profit margin	23.9%	24.6%	-67 bp	-70 bp
48.6	57.1	-14.8%	Adjusted EBITDA	95.4	106.2	-10.1%	-7.1%
12.9%	13.7%	-81 bp	Adjusted EBITDA margin	12.6%	13.5%	-94 bp	-96 bp
44.9	53.3	-15.7%	Adjusted EBITA	88.1	98.5	-10.6%	-7.6%
11.9%	12.8%	-88 bp	Adjusted EBITA margin	11.6%	12.5%	-93 bp	-97 bp
50.1%	52.6%	-248 bp	Conversion margin	48.4%	50.9%	-246 bp	-255 bp

Revenue in the Americas was EUR 759.7m in H1 2025, representing a year-on-year decrease of 3.4% (-0.2% in constant currency). Organic revenue and M&A revenue growth contribution were broadly stable, whilst FX translation represented a negative impact of 3.2%. In Q2, revenue decreased by 9.5% driven by a significant FX headwind of 6.3% and an organic decline of 3.2%, reversing the organic growth in Q1. The organic decline was due largely to further deterioration in Personal Care as consumer sentiment over the near-term economic outlook weighed on demand.

Gross profit in the region declined by 6.0% to EUR 181.9m, resulting in gross profit margin of 23.9%. The 67 bp gross margin step-down reflects the negative mix effect from higher contribution from Industrial Chemicals and Latin America. During the period, adjusted EBITA was EUR 88.1m, leading to a 93 bp contraction in adjusted EBITA margin, due to softer topline and gross profit and dilution from our less mature Latin America business. The results similarly only reflect preliminary impact from recently initiated cost measures. Conversion margin contracted by 246 bp to 48.4% for the period.

Asia Pacific

Q2 2025	Q2 2024	Change	(in millions of €)	H1 2025	H1 2024	Change	Constant currency
201.9	222.2	-9.1%	Revenue	420.1	441.8	-4.9%	-2.2%
39.0	45.1	-13.4%	Gross profit	84.4	92.2	-8.5%	-5.9%
19.3%	20.3%	-96 bp	Gross profit margin	20.1%	20.9%	-80 bp	-81 bp
20.7	24.9	-16.8%	Adjusted EBITDA	46.6	49.0	-5.0%	-2.6%
10.2%	11.2%	-94 bp	Adjusted EBITDA margin	11.1%	11.1%	-1 bp	-5 bp
18.7	22.6	-17.1%	Adjusted EBITA	42.6	44.8	-4.9%	-2.6%
9.3%	10.2%	-90 bp	Adjusted EBITA margin	10.1%	10.1%	0 bp	-4 bp
48.0%	50.2%	-218 bp	Conversion margin	50.5%	48.6%	194 bp	177 bp

In H1 2025, revenue in APAC was reduced by 4.9% compared to the prior year (-2.2% in constant currency). Organic revenue declined by 3.6% due to slowing volume growth in India and Southeast Asia, continued weakness in Australia and New Zealand, and residual impact of our portfolio optimisation programme in the region. Revenue growth contribution from acquisitions was 1.5%, while FX translation represented a 2.7% headwind. In Q2, revenue decreased by 9.1% year-on-year, driven by a 5.1% organic decline and a negative impact from FX translation of 5.2%.

Gross profit in the region decreased by 8.5% year-on-year (-5.9% in constant currency) to EUR 84.4m, representing gross profit margin of 20.1%. The 80 bp gross margin contraction reflects negative mix effects, as well as competitive pressure in Southeast Asia. Adjusted EBITA declined by 4.9% year-on-year (–2.6% in constant currency), reflecting only an initial contribution from cost-saving measures. Despite the topline pressure, the adjusted EBITA margin remained stable at 10.1%, and conversion margin expanded by 194 basis points to 50.5%.

Holding companies

Q2 2025	Q2 2024	Change		H1 2025	H1 2024	Change	Constant currency
-9.9	-8.5	15.8%	Adjusted EBITA (in millions of €)	-19.3	-17.4	11.5%	11.5%
-0.9%	-0.8%	-15 bp	As % of Group revenue	-0.9%	-0.8%	-9 bp	-6 bp

Operating costs at the Group’s holding companies, which relate to the Group’s non-operating entities as well as the head office in Belgium, rose by 11.5% to EUR 19.3m, or 0.9% of Group revenues. The increase was due mostly to higher costs from the expansion of the Group’s shared service centres and general cost inflation in various professional services.

OUTLOOK

The market for speciality chemical and food ingredient distribution remains highly attractive. Azelis is confident that it has the right strategy to navigate the challenges and benefit from the opportunities generated by the trends shaping its industry.

FINANCIAL REVIEW

Q2 2025	Q2 2024	Change	(in millions of €)	H1 2025	H1 2024	F/X	M&A	Organic	Total
1,061.1	1,094.6	-3.1%	Revenue	2,158.9	2,145.7	-2.7%	2.2%	1.2%	0.6%
251.3	265.9	-5.5%	Gross profit	515.1	526.5	-2.4%	2.1%	-1.8%	-2.2%
114.8	129.7	-11.5%	Adjusted EBITA	234.5	254.0	-2.4%	2.6%	-7.9%	-7.7%

Q2 2025	Q2 2024	Change	(in millions of €)	H1 2025	H1 2024	Change	Constant currency
656.5	679.6	-3.4%	Life Sciences	1,349.8	1,348.4	0.1%	2.6%
404.6	415.0	-2.5%	Industrial Chemicals	809.2	797.3	1.5%	4.6%
1,061.1	1,094.6	-3.1%	Group revenue	2,158.9	2,145.7	0.6%	3.3%
251.3	265.9	-5.5%	Gross profit	515.1	526.5	-2.2%	0.3%
23.7%	24.3%	-61 bp	Gross profit margin	23.9%	24.5%	-68 bp	-75 bp
126.1	140.5	-10.3%	Adjusted EBITDA	256.6	274.8	-6.6%	-4.1%
11.9%	12.8%	-95 bp	Adjusted EBITDA margin	11.9%	12.8%	-92 bp	-95 bp
114.8	129.7	-11.5%	Adjusted EBITA	234.5	254.0	-7.7%	-5.3%
10.8%	11.8%	-103 bp	Adjusted EBITA margin	10.9%	11.8%	-98 bp	-101 bp
45.7%	48.8%	-309 bp	Conversion margin	45.5%	48.2%	-273 bp	-273 bp
90.5	106.8	-15.3%	Operating profit	190.9	214.7	-11.1%	-8.7%
49.9	55.6	-10.2%	Net profit	85.5	100.1	-14.6%	-15.7%

Revenue

Revenue in H1 2025 increased by 0.6% year-on-year to EUR 2.2bn, with organic growth and revenue growth contribution from acquisitions offset by the negative impact of F/X translation. During the period, Group organic revenue increased by 1.2%, driven by continued growth in EMEA. Revenue from acquisitions represented topline growth contribution of 2.2%, while FX translation represented a 2.7% headwind.

Revenue in Life Sciences was stable compared to the prior year at EUR 1.3bn (+2.6% in constant currency), supported by robust performance across most of the end markets in EMEA, offsetting the impact of weak Personal Care in the Americas and soft demand in Southeast Asia. Revenue in Industrial Chemicals increased by 1.5% to EUR 809m (+4.6% in constant currency), driven by continued growth in EMEA and broadly stable performance in the Americas.

Profitability

For H1 2025, gross profit was EUR 515m, down 2.2% (+0.3% in constant currency) compared to the prior year, resulting in a gross profit margin of 23.9%. The 68 bp gross margin contraction reflects the negative mix effect across our businesses, as well as dilution from recent acquisitions. Adjusted EBITA was EUR 234m, representing a 7.7% year-on-year decline, and adjusted EBITA margin of 10.9%. The 98 bp contraction was driven by higher operating costs compared to the prior year; meanwhile, the recently-launched cost savings programme is not yet fully reflected in the results for the period.

Net financial expense in H1 2025 was EUR 69.9m, representing a decrease of 3.4% compared to the prior year, as lower financial expense offset the decline in financial income during the period. The lower financial expense was mainly driven by the significant reduction in interest expense, -14.7% compared to the prior year, as well as a 5.9% year-on-year decrease in other financial costs.

Tax expense for the first half of the year was EUR 35.5m, implying an effective tax rate (ETR) of 29.3%, versus 29.6% in the prior year.

Net profit was EUR 85.5m, resulting in cash earnings per share of EUR 0.51 for the first half of the year.

(in millions of €)	H1 2025	H1 2024
Operating profit	190.9	214.7
Net financial expense	-69.9	-72.4
Financial income	8.3	15.3
Financial expense	-78.2	-87.7
Interest expense on bank loans and overdrafts	-42.1	-49.4
Interest lease commitments	-4.0	-4.2
Other financial cost	-32.1	-34.1
Profit before tax	121.0	142.3
Tax expense	-35.5	-42.2
Net profit	85.5	100.1
Earnings per share	0.34	0.39
Cash earnings per share	0.51	0.61^1
The H1 2024 Cash EPS previously reported was €0.56. Refer to the revised definition in the Integrated Report 2024.

Cash flow and financing

Net working capital to revenue normalised for acquisitions was 15.8% at the end of June 2025, versus 15.9% in December 2024, and 15.4% in June 2024. The Group is committed to managing its working capital in line with slower demand, and expects to reduce working capital investments in the second half of the year.

Free cash flow increased by 10.8% year-on-year to EUR 151.2m despite lower EBITDA, driven by lower investment in working capital compared to the same period in 2024. This resulted in a 10.6 percentage point uplift in FCF conversion ratio to 63.8% for H1 2025, compared to 53.3% in H1 2024.

Net debt was EUR 1.6bn and leverage ratio stood at 3.1x at the end of June 2025, reflecting the slower EBITDA evolution and the payment of EUR 99m in deferred considerations and put options in H1 2025. The Group remains committed to its leverage policy and is focused on managing leverage back within the targeted 2.5x - 3.0x range. At the end of the period, the Group had liquidity of EUR 702m in cash and unused revolving credit facility (RCF).

(in millions of €)	H1 2025	H1 2024
Operating cash flow	176.5	153.4
Free cash flow	151.2	136.5
FCF conversion	63.8%	53.3%
Net working capital / revenue normalised for acquisitions	15.8%	15.4%
Net indebtedness	1,603.9	1,393.7
Leverage ratio	3.1x	2.7x

POST-CLOSING EVENTS

On the 9th of July, Azelis announced that it had completed the acquisition of Azienda Chimica e Farmaceutica (ACEF), a distributor of speciality raw materials and ingredients for the cosmetic, nutraceutical, galenic and pharma industries in Italy. This acquisition significantly expands Azelis's footprint in Italy and strengthens its position as industry leader in the relevant end markets.

ALTERNATIVE PERFORMANCE MEASURES

Throughout its financial communication (annual and interim reports, website, press releases, presentations, etc.), Azelis presents certain financial measures and adjustments that are not in accordance with IFRS, or any other internationally accepted accounting principles. Certain of these measures are termed 'alternative performance measures' (APMs) because they exclude amounts that are included in, or include amounts that are excluded from, the most directly comparable measure calculated and presented in accordance with IFRS, or are calculated using financial measures that are not calculated in accordance with IFRS. For more information regarding these APMs, including definitions and calculation methodology, refer to the section 'alternative performance measures' in the Azelis Group Integrated reports.

APPENDIX

All figures and tables contained in this appendix have been extracted from Azelis's unaudited condensed consolidated interim financial statements for the first six months of 2025, which have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the European Union.

The statutory auditor, PwC Bedrijfsrevisoren BV / Reviseurs d’Entreprises SRL, represented by Peter D'hondt, has reviewed these condensed consolidated interim financial statements and concluded that based on the review, nothing has come to the attention that causes them to believe that the condensed consolidated interim financial information is not prepared, in all material respects, in accordance with IAS 34, as adopted by the European Union.

For the condensed consolidated interim financial statements for the first six months of 2025 and the review report of the statutory auditor we refer to Azelis's website.

Consolidated income statement for the period ended 30 June

(in thousands of €)	Jan-June 2025	Jan-June 2024
Revenue	2,158,925	2,145,661
Other operating income	12,013	12,832
Total income	2,170,938	2,158,493
Costs for goods and consumables	-1,655,851	-1,632,026
Gross profit	515,087	526,467
Employee benefits expenses	-161,476	-153,210
External services and other expenses	-104,181	-102,445
Depreciation of tangible assets	-22,157	-20,829
Amortisation of intangible assets	-36,352	-35,300
Operating profit / loss (-)	190,921	214,683
Financial income	8,275	15,321
Financial expenses	-78,210	-87,718
Net financial expense	-69,935	-72,397
Profit / loss (-) before tax	120,986	142,286
Income tax income / expense (-)	-35,488	-42,156
Net profit / loss (-) for the period from continuing operations	85,498	100,130
Attributable to:
Equity holders of the parent	83,547	94,822
Non-controlling interests	1,951	5,308
Net profit / loss (-) for the period	85,498	100,130
	in €	in €
Basic earnings per share	0.34	0.39
Diluted earnings per share	0.34	0.39

Consolidated statement of financial position

(in thousands of €)	30 June, 2025	31 December, 2024
Assets
Goodwill	2,389,157	2,536,844
Intangible assets	1,315,352	1,391,781
Property, plant and equipment	63,574	66,063
Right of use assets	147,242	161,546
Investments in associates	254	254
Other financial assets	2,933	1,388
Deferred tax assets	25,736	22,100
Total non-current assets	3,944,248	4,179,976
Inventories	643,724	677,945
Trade and other receivables	617,157	589,031
Income tax receivables	10,243	11,379
Other financial assets	5	604
Cash and cash equivalents	452,289	303,945
Total current assets	1,723,418	1,582,904
Total assets	5,667,666	5,762,880
Equity and liabilities
Share capital	5,880,000	5,880,000
Reserves	-4,186,760	-3,880,188
Retained earnings	878,612	695,633
Unappropriated result	83,547	180,693
Issued capital and reserves attributable to owners of the parent	2,655,399	2,876,138
Non-controlling interests	20,420	44,008
Total equity	2,675,819	2,920,146
Loans and borrowings	1,601,176	1,613,916
Lease obligations	121,169	134,475
Employee benefit obligations	13,132	13,882
Provisions	2,288	2,517
Other non-current liabilities	7,673	33,166
Deferred tax liabilities	217,887	225,904
Total non-current liabilities	1,963,325	2,023,860
Bank overdrafts	11,674	19,146
Loans and borrowings	303,619	47,175
Lease obligations	28,746	29,278
Provisions	1,453	2,487
Income tax payables	19,977	20,221
Trade and other payables	663,053	700,567
Total current liabilities	1,028,522	818,874
Total liabilities	2,991,847	2,842,734
Total equity and liabilities	5,667,666	5,762,880

Consolidated statement of cash flows

(in thousands of €)	Jan-June 2025	Jan-June 2024
Cash flows from operating activities
Net profit / loss (-) for the period	85,498	100,130
Adjustments for:
Depreciation, amortisation and impairment expenses	58,509	56,128
Net financial expense	69,935	72,397
Cost of share-based payment	1,069	989
Income tax income / expense	35,488	42,156
Change in inventories	-5,975	-37,361
Change in trade and other receivables and other investments	-90,923	-160,204
Change in trade and other payables	23,958	81,070
Change in provisions	-1,030	-1,906
Cash flow from operating activities	176,529	153,399
Interest received	2,757	9,279
Income tax paid	-38,114	-22,196
Net cash flow from operating activities	141,172	140,482
Cash flow from investing activities
Acquisition of property, plant and equipment and intangible assets	-18,420	-5,469
Acquisition of subsidiaries, net of cash acquired	-47,425	-122,033
Net cash flow from investing activities	-65,845	-127,502
Cash flows from financing activities
Payments of lease obligation	-19,678	-18,572
Acquisition of non-controlling interests	-80,638	-
Purchase of treasury shares	-1,190	-2,507
Interest paid	-56,031	-62,287
Proceeds from loans and borrowings	268,221	29,558
Repayments of loans and borrowings	-38,101	-64,203
Other cash flows from financing activities	6,332	-4,432
Net cash flow from financing activities	78,915	-122,443
Net (decrease) increase in cash and cash equivalents	154,241	-109,463
Effect of exchange rate fluctuations on cash held	1,575	-1,467
Cash and cash equivalents minus bank overdraft at beginning of the period	284,799	466,588
Cash and cash equivalents minus Bank overdraft at 30 June	440,615	355,658

NOTES TO THE EDITOR

About Azelis

Azelis is the reference global innovation service provider in the speciality chemical and food ingredients industry present in 65 countries across the globe with over 4,300 employees. Our knowledgeable teams of industry, market and technical experts are each dedicated to a specific market within Life Sciences and Industrial Chemicals. We offer a lateral value chain of complementary products to more than 62,000 customers, supported by +2,800 principal relationships, creating a turnover of €4.2 billion (2024). Azelis Group NV is listed on Euronext Brussels under ticker AZE and is included in the BEL20 and BEL^® ESG indices.

Across our extensive network of more than 70 application laboratories, our award-winning teams help develop formulations and provide technical guidance throughout the customers’ product development process. We combine a global market reach with a local footprint to offer a reliable, integrated, and unique digital service to local customers and attractive business opportunities to principals. Top industry-rated by Sustainalytics, Azelis is a leader in sustainability. We believe in building and nurturing solid, honest, and transparent relationships with our people and partners.

Impact through ideas. Innovation through formulation.

Important disclaimer

This press release may contain statements relevant to Azelis Group NV (the Company) and/or its affiliated companies (collectively Azelis or the Azelis Group) which are not historical facts, contain wording like 'potential', 'believes', 'anticipates', 'expects', 'intends', 'plans', 'seeks', 'estimates', 'may', 'will', 'continue' and similar expressions, and are hereby identified as 'forward-looking statements'. Such forward-looking statements include, without limitation, those relating to the future business prospects, revenue, working capital, liquidity, capital needs, interest costs, and income, in each case relating to the Azelis Group.

The forward-looking statements and estimates contained herein represent the judgment of and are based on the information available to the Board of Directors and the Company’s management as of the date of this press release. They are subject to a number of known and unknown risks, uncertainties, assumptions and other factors that could cause actual results, financial condition, performance or achievements, or industry results to differ materially from those expressed or implied by the forward-looking statements.

These forward-looking statements should not be considered as guarantees for the future performance of the Azelis Group and should, therefore, be considered in light of various important factors that could cause actual results to differ materially from estimates or projections contained in the forward-looking statements. These include without limitation global spread and impact of military conflicts and pandemics, changes in economic, and business cycles, the terms and conditions of Azelis's financing arrangements, foreign currency rate fluctuations, competition in Azelis's key markets, acquisitions or disposals of businesses or assets, potential or actual data security breaches, changes in laws and regulations, changes or uncertainties in tax laws or the administration thereof, hiring and retention of employees, and trends in Azelis's principal industries or economies. Azelis's efforts to acquire and integrate businesses may not be as successful as Azelis may have believed at the moment of acquisition. Last but not least, a breakdown, cyberattack or information security breach could compromise the confidentiality, integrity and availability of Azelis's data and systems.

The foregoing list of important factors is not exhaustive. When considering forward-looking statements, careful consideration should be given to the foregoing factors and other uncertainties and events, as well as factors described in any other document published by the Company with the Belgian Financial Services and Markets Authority (FSMA) or on the Azelis website from time to time. No undue reliance should be placed on such forward-looking statements, which are relevant only as of the date of this publication and do not reflect any potential impacts from the evolving military conflicts, pandemics or other adversity, unless indicated otherwise. Except as required by the FSMA, Euronext, or otherwise in accordance with applicable law, the Company disclaims any obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Certain financial information in this press release has been rounded according to established commercial standards. As a result, this press release may show minor rounding differences versus comparable periods as presented earlier. Pursuant to Belgian Law, Azelis is required to prepare this press release in Dutch. Azelis has also made this report available in English.