Zotefoams (ZTF) H2 2025 earnings summary

Executive summary

• Achieved record revenue of GBP 158.5 million, up 7% year-over-year, and record adjusted operating profit of GBP 22.8 million, up 26%.

• Executed an unchanged strategy focused on expanding beyond the core, building a new leadership team, and shifting to an industry-led, market-focused organization.

• Major investments included the acquisition of OKC in Spain, expansion in Asia (Vietnam and Korea), and capacity increases in North America.

• Significant investments in innovation, including a new Global Innovation Hub in the UK and sector specialists hired.

• The company is now more diversified by market, geography, and application, with a stronger platform for long-term growth.

Financial highlights

• Group revenue rose 7% year-over-year to GBP 158.5 million, with EMEA leading growth.

• Adjusted operating profit increased 26% to GBP 22.8 million; adjusted operating margin up 220 bps to 14.4%.

• Adjusted profit before tax up 39% to GBP 21.2 million; statutory profit before tax GBP 20 million.

• Adjusted EPS up 46% to GBP 0.38; statutory EPS GBP 0.464 vs. a loss prior year.

• Gross profit grew 15% to GBP 52.9 million; gross margin improved to 33.4%.

• Cash generated from operations increased 31% to GBP 39.7 million; ROCE improved to 13.9%.

• Net debt increased to GBP 31.5 million due to the OKC acquisition, but leverage ratio improved to 0.8x.

• Total dividend up 5% to GBP 0.0785 per share.

Outlook and guidance

• Entered 2026 with good momentum; footwear volumes expected to normalize, but growth in other segments and OKC will offset.

• Business is more diversified and balanced, with confidence in medium-term targets and ambitious goals for revenue over GBP 230 million and operating profit over GBP 40 million by FY2029.

• Strategy remains unchanged, with stronger execution capability and increasing pace.

• Tax rate expected to normalize at 24–25% going forward.