Zotefoams (ZTF) H1 2025 earnings summary

Executive summary

• Achieved record H1 revenue of £77.4m, up 9% year-over-year, with strong growth in EMEA and North America, especially in Consumer & Lifestyle (+16–18%) and Transport & Smart Technologies (+13–49%).

• Profit before tax up 37% to £11.4m, operating profit up 26% to £12.2m, and basic EPS up 55% to 19.99p.

• Strategic realignment to vertical-focused business and regional management, with commercial transformation and operational efficiency gains.

• Announced joint venture in Vietnam with Seoheung Co. Ltd, with Seoheung acquiring a 17.5% stake for $10m, supporting global footwear market expansion.

• Interim dividend increased by 5% to 2.50p per share, reflecting confidence in cash generation and future prospects.

Financial highlights

• Revenue rose 9% year-over-year to £77.4m (10% at constant currency); gross margin up 140 bps to 34.6%.

• Operating margin up 220 bps to 15.8%; gross profit up £3.2m to £26.8m.

• Net debt reduced to £21.1m, leverage at 0.7x (down from 1.4x), and cash from operations up 86% to £15.8m.

• Basic EPS up 55% to 19.99p; interim dividend up 5% to 2.50p per share.

• Net capital expenditure at £7.8m–£8.5m in H1, with further investment planned for Vietnam.

Outlook and guidance

• Full-year profit before tax expected ahead of previous expectations, with consensus at £155m revenue and £20.5m profit.

• Continued focus on commercial transformation, operational excellence, and expanding beyond the core, especially in Asia and North America.

• H2 growth anticipated as new U.S. capacity comes online and Vietnam JV progresses; some moderation in Consumer & Lifestyle demand expected.

• Construction & Other Industrial expected to improve in North America in H2; EMEA construction remains subdued.

• Ongoing investment in Vietnam, innovation, and M&A pipeline positions the group for sustainable medium-term growth.