News Markets & Companies
Azelis reports strong cash flow growth in challenging markets despite profit decline
Azelis delivered a free cash flow of EUR 442 million in 2025, marking a 29.2 % increase compared to the previous year. Despite declining revenue and a 40 % drop in net profit, the company remains optimistic about its long-term growth strategy.
Specialty chemicals distributor Azelis has announced its financial results for 2025, reporting revenue of EUR 4.1 billion, a 2.4 % decline compared to 2024 (+1.3 % on a constant currency basis). Despite the drop in revenue, the company achieved a 29.2 % increase in free cash flow to EUR 442 million, resulting in a cash conversion ratio of 106 % – the second-highest in its history. However, net profit fell by 40.1 % to EUR 113 million, driven by lower operating profit, higher tax expenses, and weaker organic performance.
The company also reported a 12.7 % decline in adjusted EBITA to EUR 411 million, with the EBITA margin narrowing by 117 basis points to 10 %. The results were impacted by unfavourable exchange rate movements, reduced demand in key segments, and a negative product mix effect. Revenue in Life Sciences decreased by 1.7 % (+1.9 % in constant currency), while the Industrial Chemicals segment saw a 3.7 % decline.
Focus on sustainable cash flow and strategic priorities
Azelis attributed its strong free cash flow growth to stringent cost controls and optimised working capital management, despite challenging macroeconomic conditions. CEO Anna Bertona stated, “The strong cash flow growth demonstrates the resilience of our business model and the dedication of our teams in delivering long-term value in volatile markets.” Bertona also highlighted progress in sustainability and innovation, including an improved CDP rating of A- and four strategic acquisitions contributing EUR 110 million in revenue.
The company remains confident in its long-term growth strategy, which focuses on sustainable investments, dividend payments, and market expansion. Azelis plans to continue deploying capital towards value-accretive acquisitions and organic growth while maintaining a strong balance sheet and reducing leverage.
Challenges and outlook
The year 2025 was marked by weak demand and global market uncertainties, including geopolitical tensions and trade disruptions. These factors led to declining revenues and margins in regions such as Asia-Pacific and the Americas. Nevertheless, Azelis views the specialty chemicals and food ingredients distribution sector as structurally attractive and anticipates a recovery in demand in the medium term.
Azelis’s asset-light business model, combined with initiatives to enhance operational efficiency through digital programmes, aims to position the company to create sustainable value even in volatile environments.
