Q1 2026 IMCD NV Earnings Call Transcript
Key Points
- IMCD NV (IMCDY) reported an increase in free cash flow to EUR121 million, leading to a cash conversion margin of almost 91%.
- The company completed two strategic acquisitions in Q1 2026, strengthening its position in the beauty and personal care market in South Korea and the food and nutrition sector in the UK and Ireland.
- Despite challenging market conditions, IMCD NV (IMCDY) achieved a 6% increase in ForEx-adjusted revenue and a 1% increase in gross profit.
- The company has been able to quickly identify and pass on price increases due to rising transportation and raw material costs, maintaining its agility in volatile markets.
- IMCD NV (IMCDY) has successfully rolled out its digital sales tool, MyIMCD, with positive uptake from customers, enhancing its ability to offer a wider range of products efficiently.
- The company's EBITA decreased to EUR130 million, with a decline in the operating EBITA margin to 10.2% and a conversion margin drop to 41.6%.
- IMCD NV (IMCDY) faced significant currency headwinds, particularly affecting sales volumes in the Americas and APAC regions.
- The gross margin percentage decreased by 1.2% compared to Q1 2025, partly due to the impact of recent acquisitions with lower average gross profit margins.
- The Americas region reported a substantial negative organic growth in gross profit and EBITA, attributed to a more industrial and volatile business mix and strong Q1 2025 comparables.
- The company remains cautious about the outlook due to ongoing geopolitical uncertainties, particularly the conflict in the Middle East, which could impact consumer confidence and demand.
Hello. Welcome to the IMCD's first 3 Months 2026 results conference call, hosted by Marcus Jordan, CEO; and Hans Kooijmans, CFO. (Operator Instructions)
I would now like to give the floor to Marcus Jordan. Mr. Jordan, please go ahead.
Thank you very much. Good morning to you all, and a warm welcome. I'm Marcus Jordan, and I'm here today with our CFO, Hans Kooijmans, for the first three months 2026 results, which we published in a press release earlier this morning. I'm going to keep my opening brief to allow sufficient time for Q&A, as we have our AGM immediately after this meeting. And so we have a hard stop at 10:00.
Our first-quarter of 2026 delivered solid results against a strong Q1 2025 comparable, and I'm happy to report an increase in free cash flow and a robust cash conversion margin. During the previous full year call, we referred to positive conversations with our suppliers and customers regarding the demand outlook and green shoots potentially
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