1、EUROPE|European MidcapsEquity ResearchJuly 3,2025 DavidKerstens*|Equity Analyst44(0)20 7029 8684|ChrisCounihan*|Equity Analyst44(0)20 7548 4676|Specialty Chemicals Distributors 2Q25EPreview:Slowing Volume Momentum2Q25 results of Azelis and IMCD are expected to reflect slowing volumemomentum,caused b

2、y increased uncertainty from potential trade tariffs.As a result,we project Azelis EBITA will be 10%lower at 116m,withrelatively higher exposure to cyclical sectors in North America,and a costbase still geared for growth,while IMCD EBITA is projected to increase 2%to146m.We have cut FY25E EBITA esti

3、mates by c.3%reflecting increasingFX headwinds.Slowing volume momentum.Our recent surveys of paint and chemical distributors flaggedmid-single digit declines in chemicals volumes in June in Europe,and weaker backlogs,whilecostumer inventory levels remain a concern.Volumes in North America showed a l

4、ow-singledigit decline,while volumes in China saw a low-single digit recovery.Azelis 2Q25E EBITA is projected to be 10%lower at 116.3m,vs.consensus 119.8m(Visible Alpha),driven by organic revenue growth of 0.2%,vs.2.5%in 1Q25.Note thatAzelis said growth in the US decelerated towards the end of Q1,wi

5、th customers movingtowards smaller order sizes,as potential trade tariffs led to increased uncertainty.Profitability is expected to be under pressure,with increased operating costs inanticipation of a return to growth,while targeted cost savings of 20m are expected to belargely realised in 2H25E.As

6、a result,we project a 122bps lower EBITA margin at 10.6%(vs.consensus 10.8%).IMCD 2Q25E EBITA is projected to be 2%higher at 145.6m,vs.consensus 144.2m(Visible Alpha),driven by organic growth 1.0%,vs.4.2%in 1Q25 which was helped by easycomparatives,and broad-based growth of 7.5%in the Americas,with