Zotefoams (ZTF) Q3 2025 TU earnings summary

Executive summary

• Sustained positive trading momentum in Q3 2025, with performance in line with Board expectations.

• Record first half followed by Q3 revenue of £38.2m, slightly below Q3 2024 but strong on a constant currency basis.

• Strategic initiatives advanced, including new leadership in Asia, a joint venture in Vietnam, and innovation hubs in South Korea and Croydon.

Financial highlights

• Q3 2025 reported revenue: £38.2m (Q3 2024: £39.7m).

• Year-to-date revenue up 5% to £115.7m (YTD 2024: £110.7m), up 7% on a constant currency basis.

• Gross margin year-to-date in line with prior year, benefiting from revenue growth and closure of MELs activities.

• Leverage reduced to 0.5x from 0.9x in Q3 2024, reflecting strong cashflow from operations.

Outlook and guidance

• Board expects mid-single-digit growth for the full year, with revenue and adjusted profit before tax in line with market expectations.

• 2025 consensus: revenue £154.4m, adjusted profit before tax £20.5m.

• Good visibility of confirmed orders for the remainder of 2025.