Zotefoams (ZTF) Trading Update summary

Trading performance

• Achieved record revenue of £50.7m for the four months ended 30 April 2025, representing 8% sales growth year-on-year.

• EMEA sales rose 11% to £40.4m, with Consumer & Lifestyle up 15% and Transport & Smart Technologies up 8%.

• North America sales increased 5% to £9.3m, driven by 24% growth in Transport & Smart Technologies.

• Asia-Pacific sales declined 41% to £1.0m, but the region remains strategically important as Vietnam operations are set to commence.

• Margins remained robust and in line with expectations, with negligible currency impact anticipated.

Strategic initiatives and outlook

• Shifted to a market-focused structure across three verticals and reorganized commercial functions globally.

• Progressing with a new manufacturing facility in Vietnam to support the Consumer & Lifestyle vertical.

• North American low-pressure vessel commissioning on track for Q3 2025, enhancing local supply.

• Innovation pipeline advancing, especially in sustainable materials across all verticals.

• Board expects overall growth in 2025, supported by a strong order book and opportunities across geographies.

Market and operational context

• US-led tariffs present manageable headwinds, not a fundamental shift in market opportunity.

• Supercritical foams adoption in athletic footwear is at 4-6%, indicating significant growth potential.

• Vietnam investment remains key due to Asia's dominance in global footwear manufacturing.

• Zotefoams' global footprint and technical differentiation provide operational flexibility.

• Current market expectations for FY25 are revenue of £149.7m and adjusted profit before tax of £19.4m.