Azelis stock gains operating momentum despite Americas impairment

Azelis reported stronger underlying growth in the third quarter on October 22, 2026, but booked a 350 million euro non-cash goodwill impairment in the Americas. The specialty chemicals and food ingredients distributor said it remains confident of delivering positive organic adjusted EBITA growth for the full year.

Azelis stock traded at 11.48 euros on Lang & Schwarz at 10:02 CET on Wednesday, November 11, 2026.

Organic Growth Accelerates

Group revenue reached 1.122 billion euros in the quarter, up 8.5 percent in constant currency from the prior-year period. Organic growth contributed 8.2 percentage points, while acquisitions added 0.3 percentage points. Revenue for the first nine months rose 4.9 percent in constant currency to 3.288 billion euros.

Gross profit increased 8.8 percent in constant currency to 263 million euros, lifting the margin to 23.4 percent. Adjusted EBITA rose 14.6 percent to 114 million euros, including 14.3 percent organic growth. The adjusted EBITA margin expanded to 10.2 percent from 9.7 percent a year earlier.

Industrial Chemicals led the recovery, with quarterly revenue up 21.0 percent in constant currency, including 20.2 percent organic growth. Life Sciences revenue increased 1.5 percent. Across the regions, organic revenue growth reached 7.5 percent in EMEA, 8.0 percent in the Americas and 10.2 percent in Asia Pacific.

Americas Charge Weighs On Accounts

The quarterly operating improvement was accompanied by a 350 million euro impairment charge, primarily related to goodwill from Americas acquisitions completed between 2021 and 2023. Azelis said the charge followed its annual impairment testing and reflected lower market valuations for certain businesses.

The impairment reduces goodwill, total assets, equity and reported net income, subject to tax effects. It has no direct impact on cash flow, working capital or net debt. EMEA and Asia Pacific were unaffected.

Americas revenue increased 8.0 percent in constant currency to 405 million euros, while adjusted EBITA rose organically by 19.2 percent to 48 million euros. The regional adjusted EBITA margin widened to 11.8 percent.

Cash Flow Remains A Focus

Free cash flow fell to 67 million euros from 142 million euros in the prior-year quarter. Azelis attributed the weaker conversion to higher working capital investment, including increased inventory to support demand recovery. Net debt stood at 1.640 billion euros and leverage at 3.46 times at the end of September.

Chief Executive Anna Bertona said earlier signs of recovery had strengthened and that the group was building on positive momentum. The company also reaffirmed medium-term targets for mid- to high-single-digit annual gross profit growth, high-single-digit adjusted EBITA growth, a doubling of earnings per share by 2031 and return on capital employed above 11.5 percent.

The company's Q3 release said volume trends differ across end markets and volatility remains elevated. The next focus for investors is whether fourth-quarter working capital normalisation and continued EBITA growth can improve cash generation and reduce leverage.

For the broader Belgian market context, investors can follow the BEL20 and current market reports.

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