Intercos (ICOS) Q4 2025 earnings summary

Executive summary

• Fiscal year marked by geopolitical tensions, market consolidation, and global beauty market softness, leading to a strategic focus on profitability recovery and higher value-added business over top-line growth.

• Net sales reached €1,047.2 million, up 0.3% at constant FX but down 1.7% reported, impacted by lower pack sales and adverse FX movements.

• Achieved structural improvements in profitability, with adjusted EBITDA up 8.8% to €156 million and margin expansion to 14.9% of net sales and 19.2% of value-added sales, the highest since IPO.

• Maintained strong financial discipline, balancing investments, shareholder returns, and a solid balance sheet, with net debt stable at €100.5 million and leverage ratio at 0.64x.

• Dividend proposal of €19 million and ongoing share buyback program up to 4% of share capital.

Financial highlights

• Gross profit improved by €12.4 million to €219.4 million, with gross margin up 151bps to 21.0%.

• Value-added sales were €812.8 million, up 1.5% at constant FX.

• Adjusted net income increased to €57.4 million, up 1.3% year-over-year.

• Operating cash flow after capex was €73.5 million, with cash conversion over 47% of EBITDA.

• Net financial position excluding IFRS16 was €62.2 million.

Outlook and guidance

• Forecasting 2026 sales growth of 5–6% reported, 6–7% at constant rates, outpacing expected market growth of 4%.

• Growth expected to be weighted toward Q2 and the second half of 2026, with Q1 anticipated to be softer.

• Margins expected to be at least flat or slightly improving in 2026.

• Order intake in December 2025 was the highest ever, supporting a positive outlook.

• Strategic expansion in China, South Korea, and emerging markets like India and Brazil.