Roquette reports core profit dip amid post-pandemic repercussions and war-based inflation

Facing the persistent headwinds of post-pandemic market volatility and Ukraine war-driven inflation, Roquette’s 2024 financial results reveal a substantial decline. The French plant-based excipients giant saw its EBITDA drop by 13% to €529 million (~US$573.6 million) — representing a margin of 11.8% — while turnover decreased by 10% from 2023 to €4.495 million (~US$4.867 million), according to newly released figures.

Growth in specialty products, particularly in the company’s Pharma Solutions activities, partially offset the pressure from declining selling prices.

Despite market volatility, the supplier notes market conditions started to normalize in 2024, with costs lowering alongside a gradual recovery in demand, particularly in the health and nutrition sectors.

Against this backdrop and increased competition, Roquette adopted a market share protection strategy, particularly in its Core Ingredients business in Europe.

This commercial policy adjustment, combined with the recovery in demand, reportedly led to an increase in the group’s volumes. Additionally, to preserve its performance, the group maintained strict control over operational costs and benefited from the “positive results” of its competitiveness program launched in 2022.

“Roquette delivered a resilient financial performance in 2024. Our Pharma Solutions business continued its development, with a strong growth that confirms our strategy to reinforce our leadership in this market,” says Roquette’s CEO, Pierre Courduroux.

“Despite a challenging environment, our Core Ingredients activities are in line with a market which remains below historical levels.”

Reported net income stood at €61 million (~US$66.2 million), impacted by non-recurring items (before income tax effects) amounting to €68 million (~US$73.8 million), mainly related to the ongoing acquisition of IFF Pharma Solutions and the Qualicaps integration costs.

Rigorous cost management and growth in pharma

In reported performance results, working capital requirement improved, decreasing from 20.4% of turnover in 2023 to 18.9% in 2024. This was driven primarily by a reduction in inventory value and accounts receivable in a context of slowing inflation.

Moreover, a strict operational discipline, combined with easing inflationary pressures, allowed the group to record a strong improvement in free cash-flow, reaching €275 million (~US$298.3 million) in 2024 versus -€364 million (~394.9 million) in 2023.

Excluding the Qualicaps acquisition, the group would have generated a positive free cash-flow of €83 million (~US$90 million) in 2023.

“The ongoing acquisition of IFF Pharma Solutions marks a strategic milestone for the group. It will enable us to better balance our portfolio between health and nutrition, reducing our exposure to commodity price fluctuations while strengthening our global presence in high-value markets, and particularly with a larger industrial footprint in the US,” stresses Courduroux.

“In addition, the success of our first dual tranche bond issue demonstrates investor confidence and marks the beginning of a new phase of sustainable value creation for all our stakeholders.”

Next acquisition scheduled in Q2 2025

Roquette highlights that like other industries, visibility for the year remains limited, as it stays focused on its strategic priorities. In 2025, the company plans to prioritize the successful integration of IFF Pharma Solutions, while maintaining the performance of its activities. 

The company also plans to continue to focus on deleveraging while strengthening its competitiveness.

“The acquisition of IFF Pharma Solutions, scheduled for the second quarter of 2025, is unique due to the complementary nature of our portfolios and our industrial footprints,” says Courduroux.

“It will significantly strengthen Roquette’s position as a key partner for global pharmaceutical companies, with a broad range of drug delivery solutions featuring diverse excipient technologies. This transformative step will pave the way for sustainable growth and long-term success for Roquette.”