Holland Colours (HOLCO) H2 24/25 earnings summary

Executive summary

• Revenue grew 8.7% year-over-year to €112.3 million, driven by volume increases and strategic growth initiatives, despite global economic and political uncertainties.

• Net result rose to €5.9 million from €5.2 million, with EPS at €6.85 versus €6.02 last year; a final dividend of €6.85 per share is proposed, representing 100% payout.

• EMEIA and Americas divisions posted revenue growth, while Asia saw a decline due to weaker sales in China and Indonesia, partially offset by gains in other Southeast Asian markets.

Financial highlights

• Operating result increased to €7.9 million from €7.0 million year-over-year; net margin improved to €55.6 million, with margin as a percentage of revenue at 49.5% versus 47.2%.

• Operating expenses rose 14.2% to €47.6 million, reflecting higher sales, technology, marketing, and IT costs aligned with the strategic roadmap.

• Net cash flow was €2.0 million positive, down from €2.8 million, with operating activities generating €7.3 million and investments totaling €2.1 million.

• EBITDA reached €11.4 million, up from €10.2 million; return on sales was 7.1%, and return on investment improved to 17.1%.

Outlook and guidance

• Heightened global political and economic uncertainties, including new US import tariffs, are expected to negatively impact the world economy in 2025/2026.

• Mitigation strategies include alternative sourcing and passing on cost increases; indirect effects on demand remain unpredictable, leading to a cautious outlook.

• Strategic focus remains on accelerating core business growth and developing innovations in recycling and circularity.