Half Year 2026 Robertet SA Earnings Call

September 18, 2026

Operator: Good day, and thank you for standing by. Welcome to the Robertet H1 2026 results conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please note that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Jérôme Bruhat, CEO. Please go ahead.

Speaker #2: Good day, and thank you for joining. Welcome to the Robertet first half 2026 results conference call and webcast. At this time, all participants are in a listen-only mode.

Speaker #2: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, please press star one-one on your telephone. You will then hear an automated message advising a hand is raised.

Speaker #2: To withdraw your question, please press star 11 again. Please note that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Jérôme Bruyat, CEO.

Speaker #2: Please go ahead.

Speaker #3: Thank you very much. Welcome to everyone for this first half 2026 results of Robertet. So I'm Jérôme Bruyat. I'm the CEO of Robertet. And I'm joined today on this webcast by Julien Aubert, who is the head of our fragrance division and chief sustainability officer, and by Isabelle Parvier, our chief financial officer, as well as Mathieu Léger, who is our investor relations and coordinator of M&A.

Jérôme Bruhat: Thank you very much, and welcome to everyone for this H1 2026 results of Robertet. I am Jérôme Bruhat, I am the CEO of Robertet, and I am joined today on this webcast by Julien Maubert, who is the head of our Fragrance Division and Chief Sustainability Officer, and by Isabelle Pardies, our Chief Financial Officer, as well as Matthieu Lugez, who is our Investor Relations and Coordinator of M&A. Julien and I will begin with the key commercial development and business performance for the H1 of the year. Isabelle will then present the financial results in more detail. After that, Julien will return to share our progress and commitment in sustainability. I will conclude with the outlook for the rest of the year and a reminder of our long-term ambition. Let's turn to the key highlights of the H1.

Speaker #3: Julien and I will begin with the key commercial developments and business performance for the first half of the year. Isabelle will then present the financial results in more detail.

Speaker #3: And after that, Julien will return to share our progress and commitments in sustainability, and I will conclude with the outlook for the rest of the year and a reminder of our long-term ambitions.

Speaker #3: So, let's turn to the key highlights of the first half. First, Robertet delivered a solid performance in a quite moderate market environment. Organic growth reached 2.8%, despite adverse currency effects and contrasting trends across our divisions.

Jérôme Bruhat: First, Robertet delivered a solid performance in a quite moderate market environment. Organic growth reached 2.8%, despite adverse currency effects and contrasting trends across our divisions. Namely, the Fragrance division continued its strong dynamic, supported by niche brands and new market players, while the Health and Beauty division maintained a quite solid double-digit growth. At the same time, Raw Materials and Flavors faced a more challenging environment and a quite demanding comparison basis, with a very strong H1 2025. Profitability remained at a high level with a recurring EBITDA margin of 21.1% of the sales, while we continued investing in our industrial capacity, our commercial capabilities, our technology platforms in order to support future growth. Finally, sustainability remained a key differentiator for the group as the world leader of natural ingredients for fragrance and flavor.

Speaker #3: Namely, the Fragrance division continued its strong dynamic, supported by new brands and new market players, while the Health and Beauty division maintained a quite solid double-digit growth.

Speaker #3: At the same time, raw materials and flavors faced a more challenging environment and quite a demanding comparison basis, with a very strong first half of 2025.

Speaker #3: Profitability remained at a high level, with a recurring EBITDA margin of 21.1% of sales, while we continued investing in our industrial capacity, commercial capabilities, and technology platforms in order to support future growth.

Speaker #3: Finally, sustainability remained a key differentiator for the group. As the world leader in natural ingredients for fragrances and flavors, it's very important for us, and we have received, for the third year in a row, this recognition. Our notes continue to progress, and our efforts towards climate and responsible sourcing continue to be at a very high level.

Jérôme Bruhat: It's very important for us, and we have received for the third year in a row the EcoVadis platinum recognition, while our notes continue to progress, and our effort towards climate and responsible sourcing continue to be at a very high level. Turning to our sales and our consolidated revenues. You have here the split between our sources of growth. Our revenue reached EUR 444 million in H1 2026, representing a slight decline of 0.5% versus a very strong H1 2025. However, our organic growth remained positive at +2.8%. Organic growth reached 4.9% in Q1 and 0.7% in Q2, reflecting, as I said before, a more moderate market environment as the semester progressed.

Speaker #3: Turning to our sales and our consolidated revenues, here you have the split between our sources of growth. Our revenue reached €444 million in the first half of 2026, representing a slight decline of 0.5% versus a very strong first half of 2025.

Speaker #3: However, our organic growth remained positive at 2.8%. Organic growth reached 4.9% in the first quarter and 0.7% in the second quarter, reflecting, as I said before, a more moderate market environment as the semester progressed.

Speaker #3: Currency effects reduced our reported growth by 3 percentage points, which is very high, mainly due to the strengthening of the euro against most of the Group's currencies, especially the US dollar.

Jérôme Bruhat: Currency effects reduced our reported growth by three percentage points, which is very high, mainly due to the strengthening of the euro against most of the group's currencies, especially the US dollar. Scope effects were slightly negative as well. Let me now hand over to Julien, who will comment on our business performance by division and by region.

Speaker #3: Scope effects were slightly negative as well. Let me now hand over to Julien, who will comment on our business performance by division and by region.

Speaker #4: Hello everyone. Turning to slide 5, which shows the revenue by divisions: Raw Material recorded an organic decline of 5.5%, reflecting a more demanding market environment and a particularly high comparison base after several years of strong growth.

Julien Maubert: Hello, everyone. Turning to slide 5, which show the revenue by division. Raw Material recorded an organic decline of -5.5%, reflecting a more demanding market environment and a particularly high comparison base after several years of strong growth. The project pipeline, nevertheless, remains supportive. Fragrance continued its momentum with organic growth of +12.6%, especially driven by niche fine fragrance brand, emerging players, and strong momentum in Latin America and the Middle East. Flavors posted an organic decline of -1.7% in the short-term market environment, but has demonstrated resilience, thanks to sustained demand for natural value-added solutions. And finally, Health and Beauty delivered organic growth of +11.3%, benefiting from market expansion initiatives and the strengthened scientific and commercial capabilities. If we look at our regional breakdown on slide 6, our geographical mix remained very balanced.

Speaker #4: The project pipeline nevertheless remained supportive. Fragrance continued its momentum with organic growth of 12.6%, especially driven by niche fine fragrance brands, emerging players, and strong momentum in Latin America and the Middle East.

Speaker #4: Flavors posted an organic decline of 0.17% in the softer market environment, but also demonstrated resilience, thanks to sustained demand for natural value-added solutions.

Speaker #4: And finally, Essence Beauty delivered organic growth of plus 11.3%, benefiting from market expansion initiatives and strengthened scientific and commercial capabilities. If we look at our regional breakdown on slide 6, our geographical mix remains very balanced.

Speaker #4: EMEA and North America, which together represent almost three-quarters of group sales, remain broadly stable in a more cautious environment. Latin America continued to deliver outstanding growth of plus 21%, supported notably by Brazil, where we recently opened a new creation center in São Paulo.

Julien Maubert: EMEA and North America, which together represent almost three-quarters of group sales, remained broadly stable in a more cautious environment. Latin America continued to deliver outstanding growth of +21%, supported notably by Brazil, where we recently opened a new creation center in São Paulo. Asia grew by +12%, benefiting from a ramp-up of our Indonesian facility and continued strong momentum in India, particularly in Flavors. These regions remain key source of growth and support a long-term international expansion strategy. With that, let me hand it over to Isabelle, who will comment on the financial performance in more detail.

Speaker #4: Asia grew by 12%, benefiting from the ramp-up of our Indonesian facility and continued strong momentum in India, particularly in flavors. These regions remain a key source of growth and support our long-term international expansion strategy.

Speaker #4: With that, let me hand it over to Isabelle, who will comment on the financial performance in more detail.

Speaker #2: Good morning, everyone. Turning now to slide 7, with the review of the income statement. First, gross profit margin improved by 50 basis points, reflecting a favorable product mix with strong contribution from Fragrance.

Isabelle Pardies: Good morning, everyone. Turning now to slide seven with the review of the income statement. First, gross profit margin improved by 50 basis points, reflecting a favorable product mix with strong contribution from fragrance. Recurring EBITDA reached EUR 94 million, representing a margin of 21.1%. While below the exceptionally high level achieved in H1 2025, profitability remained at a historically strong level. The year-on-year decrease mainly reflects continued investment in industrial capabilities, scientific and commercial teams, and information systems to support future growth. Operating income reached EUR 75 million. Its evolution also reflects higher depreciation charges associated with industrial investments and commercial expansion initiatives implanted over recent years. Finally, lower financing costs and less adverse FX effect supported the financial result, resulting in a group share of net income of EUR 54 million. Turning to slide eight and cash flow generation. Cash flow generation remained sound in the first half.

Speaker #2: Recurring EBITDA reached €94 million, representing a margin of 21.1%. While below the exceptionally high level achieved in H1 2025, profitability remained at a historically strong level.

Speaker #2: The year-on-year decrease mainly reflects continued investment in industrial capabilities, scientific and commercial teams, and information systems to support future growth. Operating income reached €75 million.

Speaker #2: Its evolution also reflects higher depreciation charges associated with industrial investment and commercial expansion initiatives implemented over recent years. Finally, lower financing costs and less adverse FX effects supported the financial result, resulting in a group share of net income of €54 million.

Speaker #2: Turning to slide 8 and cash flow generation: Cash flow generation remained solid in the first half. Working capital evolution mainly reflected higher inventories and continued support for business growth.

Isabelle Pardies: Working capital evolution mainly reflected higher inventories and continued support for business growth. Despite lower recurring EBITDA, operating cash flow increased to EUR 40 million compared with the EUR 32 million in H1 2025, mainly benefiting from lower tax payments as we came back to a more normalized level. Despite maintaining a significant level of industrial investment of EUR 18 million and financial investment of EUR 6 million, free cash flow remained positive at EUR 15 million. Our balance sheet remains very solid, with group equity reaching EUR 647 million at the end of June. With that, let me now hand over to Julien, who will comment the sustainability performance.

Speaker #2: Despite lower recurring EBITDA, operating cash flow increased to €40 million compared with the €32 million in H1 2025, mainly benefiting from lower tax payments as we returned to a more normalized level.

Speaker #2: Despite maintaining a significant level of industrial investment of €18 million and financial investment of €6 million, free cash flow remained positive at €12.15 million.

Speaker #2: Our balance sheet remains very solid, with group equity reaching €647 million at the end of June. With that, let me now hand over to Julien, who will comment on the sustainability performance.

Speaker #4: Thank you, Isabelle. Turning to slide 9—sustainability remained at the heart of Robertet's strategy. We continue to strengthen both our commitments and our performance in this area.

Julien Maubert: Thank you, Isabelle. Turning to slide nine. Sustainability remain at the heart of Robertet strategy, and we continue to strengthen both our commitments and our performance in this area. Let me highlight two key points on this slide. First of all, we reached 67 Ciarstar verified or certified supply chains as of the year-end 2025. Please note that that figure is only updated and audited at year-end. We can share that since January 2026, we have also obtained a new certification such as Fair for Life on our Rosa Damascena supply chain in Bulgaria. As the leader in natural ingredients, we are also the leader in the number of supply chains in industry. Second, our recognition by EcoVadis. We maintain the platinum status with an improved score of 89 out of 100, placing Robertet among the top 1% of company assets globally.

Speaker #4: Let me highlight two key points on this slide. First of all, we reached 67 CSR verified or certified supply chains as of year-end 2025.

Speaker #4: Please note that that figure is only updated and audited at year-end. However, we can share that, since January 2026, we have also obtained new certifications, such as Fair for Life on our Rose Damascena supply chain in Bulgaria.

Speaker #4: As the leader in natural ingredients, we are also the leader in the number of supply chains in the industry. Second, our recognition by ECOVADIS—we maintained the Platinum status with an improved score of 89 out of 100, placing Robertet among the top 1% of companies globally.

Speaker #4: Together, these results showed that sustainability is not just a responsibility for us; it's also a real driver of trust, growth, and differentiation. Let me hand it back to Jérôme for the outlook and the closing remarks.

Julien Maubert: Together, these results show that sustainability is not just responsibility for us, it is also a result driver of trust, growth, and differentiation. Let me hand it back to Jérôme for the outlook and the closing remarks.

Speaker #3: Thank you, Julien. So, now turning to slide 11. With the outlook for 2026, as we saw, we are navigating this year in a more moderate environment, especially in the mature markets.

Jérôme Bruhat: Thank you, Julien. So now coming to slide 11, with the outlook of 2026. As we saw, we are navigating this year a more moderate environment, especially in the mature market, while we continue to invest in our future and remain very confident in our future. This year, given the H1 and given the perspective of the H2, we will target an organic growth of between +3% and +5% for the full year. The key trends that we expect in the H2 is first, to continue the strong momentum in fragrances. The momentum in key growth regions, as we saw before, especially Latin America, Middle East, and Asia. We continue to see a resilient profitability, with an EBITDA above 21%, despite continued investment efforts, but compensated by disciplined cost management.

Speaker #3: While we continue to invest in our future and remain very confident in our outlook, this year, given the first half and our perspective on the second half, we will target an organic growth of between +3% and +5% for the full year.

Speaker #3: The key trends that we expect in the second half are, first, to continue the strong momentum in fragrances, and second, the momentum in key growth regions, as we saw before—especially Latin America, the Middle East, and Asia.

Speaker #3: We continue to see resilient profitability, with EBITDA above 21%, despite continued investment efforts. This has been compensated by disciplined cost management. We have taken pricing actions to mitigate higher petroleum-derived raw material costs, especially for the second half. We have always proven that we can react to US tariff changes through different customer pricing, and we expect easing foreign exchange headwinds to favor our published turnover. The gap between published and organic will reduce.

Jérôme Bruhat: We have taken pricing actions to mitigate higher petroleum-derived raw material costs, especially for the H2. We have always proven that we could react to US tariff changes through different customer pricing, and we expect easing foreign exchange headwinds to favor our published turnover, and the gap between published and organic will reduce. For the long term, coming to slide 12, we continue to see big opportunities in our future and long-term potential of the group. Our Fit to Success 2030, which was planned last year, continues to guide us. To set a clear ambition, we want to reach between EUR 1.1 billion and EUR 1.2 billion by 2030, which implies an annual average growth of 5% to 7% between 2025 and 2030. That includes EUR 50 million to EUR 80 million of revenues from targeted acquisitions over this period.

Speaker #3: For the long term, turning to slide 12, we continue to see big opportunities in our future and the long-term potential of the Group. Our C to Success 2030, which was planned last year, continues to guide us to set a clear ambition. We want to reach between €1.1 and €1.2 billion by 2030, which implies an annual average growth of 5 to 7% between 2025 and 2030.

Speaker #3: That includes €50 to €80 million of revenues from targeted acquisitions over this period. With these drivers, combined with Robertet's unique vertically integrated model and leadership in natural ingredients, we are confident in our ability to deliver sustainable, profitable growth over the long term.

Jérôme Bruhat: With these drivers, combined with Robertet's unique vertically integrated model and leadership in natural ingredients, we are confident in our ability to deliver sustainable, profitable growth over the long term. Thank you for your attention, and we can now open the Q&A.

Speaker #3: Thank you for your attention. We can now open the Q&A.

Speaker #1: Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again.

Operator: Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Once again, please press star 11 to ask a question, and to withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. This will take a few moments. Thank you. Once again, please press star 11 to ask a question. We are now going to proceed with our first question. The question's come from the line of Gabrielle Benitez from Davy Stockbrokers. Please ask your question. Stockbrokers. Thank you.

Speaker #1: Once again, please press *11 to ask a question, and to withdraw your question, please press *11 again. Please stand by while we compile the Q&A roster.

Speaker #1: This will take a few moments. Thank you. Once again, please press star one-one to ask a question. We are now going to proceed with our first question.

Speaker #1: And the questions come from the line of Gabrielle Benete from Davy Stockholders. Please ask your question. Stockbroker's, thank you.

Speaker #5: Hi, good morning, and thanks for the question. So just my first question is on the investment spend. You've attributed your EBITDA decline to investment in capacity, headcount, and information.

Gabrielle Benitez: Hi. Good morning. Thanks for taking my question. My first question is on your investment fund. You've attributed your developer fund to investment property attached information.

Gabriele Bunyte: Hi. Good morning. Thanks for taking my question. My first question is on your investment fund. You've attributed your developer fund to investment property attached information.

Jérôme Bruhat: Sorry, we cannot understand. I am sorry. We can't hear you correctly. We cannot.

Speaker #3: Sorry, we cannot understand. I am sorry. I mean, we can't hear you correctly.

Speaker #4: We cannot hear you.

Speaker #5: Can you hear me now?

Gabrielle Benitez: Can you hear me now?

Gabriele Bunyte: Can you hear me now?

Jérôme Bruhat: Not very well. Can you hear us now, Gabrielle?

Speaker #3: No.

Speaker #4: Not doing well.

Jérôme Bruhat: Not very well. Can you hear us now, Gabrielle?

Speaker #6: Can you hear me?

Gabrielle Benitez: Can you hear me now?

Gabriele Bunyte: Can you hear me now?

Speaker #5: Can you hear me now?

Jérôme Bruhat: Very little. Sorry. Can you please speak closer to the mic?

Speaker #6: There is little, sorry. Can you please speak closer to the mic?

Speaker #5: Can you hear me now?

Gabrielle Benitez: Can you hear me now?

Gabriele Bunyte: Can you hear me now?

Jérôme Bruhat: No, it is difficult. It is very difficult. Your voice seems very far away from us. If you could possibly write your question down, and we will answer it gladly.

Speaker #4: No, it's difficult. It's very difficult. Your voice seems very, very far away from us. If you could possibly write your question down, we will answer it gladly.

Speaker #5: Okay. Thank you.

Gabrielle Benitez: Okay. Thank you.

Gabriele Bunyte: Okay. Thank you.

Speaker #1: We will now proceed with our next question. The next questions come from the line of Joan and Lim from BNP Paribas. Please ask your question.

Operator: We are now going to proceed with our next question. The next question comes from the line of Joan Lim from BNP Paribas. Please ask your question. Your line is open.

Speaker #1: Your line is open.

Speaker #7: Good morning, everyone. Can you hear me clearly?

Joan Lim: Morning, everyone. Can you hear me clearly?

Speaker #3: Yes.

Jérôme Bruhat: Yes. Yes. Very clearly.

Speaker #4: Yes, very clearly.

Speaker #7: Perfect. I have two questions, please. So, first question is: Why did you decide to change your top-line guidance now? Why not when you first reported in July?

Joan Lim: Perfect. I have two questions, please. First question is, why did you decide to change your top-line guidance now? Why not when you first reported in July? Has there been a change between July and September? If so, which division is it driven by? That is the first question. The second question is, it would be helpful if you could provide some color as to what drove the slowdown in Flavors and Raw Materials in the H1, and how should we think about the H2 of the year? I think comps are a bit easier, but not significantly easier. It would be quite helpful to understand what to think for the H2. Thank you.

Speaker #7: Has there been a change between July and September, and if so, which division is it driven by? So that's the first question. The second question is: it would be helpful if you could provide some color as to what drove the slowdown in flavors and raw materials in the first half, and how should we think about the second half of the year?

Speaker #7: Because I think comms are a bit easier, but not significantly easier, it will be quite helpful to understand what to think for the second half.

Speaker #7: Thank you.

Jérôme Bruhat: Thank you very much, Joan. First, on your first question, we slightly adjusted our top-line target versus July because after the closing of the H1, we ran an internal forecasting process in order to have a clearer view of the different countries. After this process, knowing the year to go will be between +4.7% and +7%, we wanted to give this guidance, after having checked with our countries, what they were feeling and seeing for the H2. As you know, we always have limited visibility on our clients' intentions, so we rely a lot on the ground, basically, which are the countries seeing the pipeline of projects and seeing the client evolution. Again, we have a clearer view now than we had in July. That is the first question. The second question is how can we think about Flavors and Raw Materials.

Speaker #3: Thank you very much, Joan. First, on your first question, we slightly adjusted our top-line targets versus July because, after the closing of the first half, we ran an internal forecasting process in order to have a clearer view of the different countries.

Speaker #3: And after this process, knowing the year-to-go will be between plus 4.7% and plus 7%, we wanted to give this guidance after having checked with our countries what they were feeling and seeing for the second half.

Speaker #3: As you know, we always have limited visibility on our clients' intentions, so we rely a lot on the ground—basically, on the countries—seeing the pipeline of projects and observing the client evolution.

Speaker #3: And again, we have a clearer view now than we had in July. So that's the first question. The second question is, how can we think about flavors and raw materials?

Speaker #3: First, they were the division driving exceptionally strong growth in the first half of last year, if you recall, with double-digit growth in both divisions. And so both were going into the first half of 2026 with a very strong history driven by exceptional orders in raw materials and very strong wins, and new wins—new commercial conquests—in 2025 that didn't repeat at the same level in 2026 for the first half.

Jérôme Bruhat: First, they were the divisions driving an exceptionally strong growth in the H1 last year, if you recall, with double-digit growth in both divisions. Both were going in the H1 2026 with a very strong historical, driven by exceptional orders in Raw Materials and very strong wins, new wins, new commercial conquest in 2025. That did not repeat at the same level in 2026 for the H1. Nevertheless, we continue to see a baseline business which is quite strong and makes us feel that we will see in the H2, an easier comparative and a continuous and strong flow of business on both divisions.

Speaker #3: Nevertheless, we continue to see a baseline business, which is quite strong and makes us feel that we will see in the second half an easier comparative and a continuous and strong flow of business in both divisions.

Joan Lim: Thank you. Can I just clarify then that it is not driven by any significant change in the markets or any differences that you are seeing in the market post July, it is just that you are trying to be more conservative?

Speaker #7: Thank you. So can I just clarify then that it's not driven by any significant change in the markets, or any differences that you're seeing in the market post-July?

Speaker #7: It's just that you're trying to be more conservative.

Jérôme Bruhat: More accurate, basically. We try to be more accurate. We had targeted around 5%. We feel we will be on the lower range of what we had targeted at the beginning of the year. First, to acknowledge the H1, and second, to reflect what countries have forecasted for the rest of the year with a bit more visibility post closing H1 than we had in July. But nothing major has changed in the market to answer clearly your question.

Speaker #3: More accurately, we had targeted around 5% with the right measures to be more precise. We feel we'll be on the lower end of what we had targeted at the beginning of the year.

Speaker #3: First, to acknowledge the first half; and second, to reflect what countries have forecasted for the rest of the year, with a bit more visibility post-closing the first half than we had in July.

Speaker #3: But nothing major has changed in the market to clearly answer your question.

Speaker #7: Okay, right. So it's fair to assume that the second half will be better than the first half, just driven by easier comps?

Joan Lim: Okay. Right. So it is fair to assume that the H2 will be better than the H1, just driven by easier comps.

Speaker #3: Easier comparative and a strong baseline—that continues to be there. Just, I would say, the bumps when you have big wins in a certain period were just difficult to absorb in the first half.

Jérôme Bruhat: Easier comparatives and a strong baseline. That continues to be there. Just the, I would say, the bumps when you have big wins in a certain period who are just difficult to absorb in the H1, and there are no such big events in the H2 that we need to take account of.

Speaker #3: And there are no such big bumps in the second half that we need to take account of.

Speaker #7: Okay. Very helpful. Thank you.

Joan Lim: Okay. Very helpful. Thank you.

Speaker #1: We are now going to proceed with our next question. The questions come from the line of Thomas Renaud from Kepler Cheuvreux. Please ask your question.

Operator: We are now going to proceed with our next question. The question comes from the line of Thomas Renaud from Kepler Cheuvreux. Please ask your question.

Speaker #6: Hello. Can you hear me?

Thomas Renaud: Hello. Can you hear me?

Speaker #3: Yes, very well. Hello, Thomas.

Jérôme Bruhat: Yes, very well. Hello, Thomas.

Thomas Renaud: Yes. Thank you for the presentation. I have three questions. The first one on growth for H2. At the midpoint of your updated guidance, it implies a 5% like-for-like growth in H2. Could you share with us the contribution maybe of volume versus prices? This is the first question. The second one is about your midterm targets. So 2026 should be below the pace implied by your midterm target. Do you expect any, let's say, catch-up effect in 2027? The last one, could you maybe update us on potential new developments on the M&A side? Thank you.

Speaker #6: Yes, yeah. Thank you for the presentation. I have three questions. The first one is on growth for H2. At the midpoint of your updated guidance, it implies a 5% lag for growth in H2.

Speaker #6: Could you share with us the contribution, maybe, of volume versus prices? This is the first question. The second one is about your midterm targets.

Speaker #6: So, 2026 should be below the pace implied by your midterm targets. So, do you expect any, let's say, catch-up effect in 2027? And the last one, could you maybe update us on potential new developments on the M&A side?

Speaker #6: Thank you.

Speaker #3: Thank you. So, on the first question—pricing versus volumes—we don't track that, and we never separate both. First, because the diversity of our activities makes the analysis extremely meaningless, or at least not very relevant for us, because the profile, for example, of the Ingredients division can vary quite dramatically from one year to the other, depending on the raw materials. That can be sometimes big volumes, sometimes small volumes at high price.

Jérôme Bruhat: Thank you. On the first question, pricing versus volume, we do not track that, and we never separate both. First, because the diversity of our activities makes the analysis extremely meaningless, or at least not very relevant for us, because the profile, for example, of the ingredient division can vary quite dramatically from one year to the other, depending on the raw material. That can be sometimes big volumes, sometimes small volumes at high price. So it is very hard to predict. Again, we have very little visibility from our customers. Second, same thing for flavors and fragrances, where the profile of our products and divisions is too diverse to draw conclusions. This last year was really volume driven. What I can tell you is, obviously, since we have adjusted our prices to follow the oil shock, basically, that we have to reflect in our pricing.

Speaker #3: So, it's very hard to predict. Again, we have very, very little visibility from our customers. Second, it's the same thing for flavors and fragrances, where the profile of our products and divisions is too diverse to draw conclusions.

Speaker #3: This last year was really volume-driven. What I can tell you is, obviously, since we have adjusted our prices to follow the oil shock, we basically have to reflect that in our pricing.

Speaker #3: We have made some price increases in all our divisions that should result in a greater pricing effect than volume effect in the second half. To give you precise numbers is very hard.

Jérôme Bruhat: We have made some price increases in all our divisions that should reflect in more pricing effect in the H2 than volume effect. To give you precise numbers, it is very hard, but definitely the H2 will be a bit more pricing driven than volume driven. For the midterm, yes, to answer the question, Robertet as an independent family business is always here to work more long-term objectives than short-term objectives. Clearly, we were in organic numbers. We were above target in the past two years. We are slightly below target this year, but on average, we remain confident that we will be in this 5% to 7% organic growth, plus M&A that should enrich the growth. Which brings me to your last question. Yes, the M&A for the moment is quite silent because we have a very disciplined approach to M&A.

Speaker #3: But definitely, the second half will be a bit more pricing-driven than volume-driven. For the midterm, yes, to answer your question, Robertet is an independent family business.

Speaker #3: It's always geared towards both long-term objectives and short-term objectives. Clearly, in organic numbers, we were above target in the past two years.

Speaker #3: We are slightly below target this year, but on average, we remain confident that we will be in this 5% to 7% organic growth, plus M&A that should enrich the growth.

Speaker #3: We strive—me, to your last question—yes, the M&A for the moment is quite silent, because we have a very disciplined approach to M&As.

Speaker #3: First, these are targeted M&As—no big, transformative M&As to expect. At this stage, we are always looking at relevant targets, but we want to pay the right price for them.

Jérôme Bruhat: First, these are targeted M&A, no big transformative M&A to expect at this stage. We are always looking at the relevant target, but we want to pay them the right price. As you know, our sweet spots are companies between EUR 15 to 50 million sales. In this bracket, all the targets that we had seen were either too expensive with a lot of competition from financial investors or had operational problems that we did not want to carry on. So we remain very active in the search, but unfortunately not very conclusive in the buying because of those two issues, operability and reasonable investments, which were not met. But definitely the arrival of Matthieu Lugez, who is both our investor relations and our director of M&A, will dynamize the search. We rely on a lot of field network.

Speaker #3: As you know, our sweet spots are companies between €15 million to €50 million in sales, and in this bracket, all the targets that we have seen were either too expensive, with a lot of competition from financial investors, or had operational problems that we didn't want to carry on.

Speaker #3: So we've remained very active in the search, but unfortunately, not very conclusive in the buying because of those two issues: operability and reasonable investments, which were not met.

Speaker #3: But definitely, the arrival of Mathieu Luge, along with both our Head of Investor Relations and our Director of M&As, will dynamize the search. We rely a lot on our field network; our people on the ground meet all those small-sized companies that could be targeted.

Jérôme Bruhat: Our people on the ground meet all those small size companies that could be targeted. Nevertheless, we do not pretend that we saw them all, and I think Mathieu will make sure that we have a network on the field, but also of financial partners to make sure we screen every possible target in order to give a new dynamic to our M&A effort to be expected in the coming months as Mathieu takes his ownership of the search.

Speaker #3: Nevertheless, we do not pretend that we saw them all. And I think Mathieu will make sure that we have a network of on-the-field, but also of financial partners, to make sure we screen every possible target.

Speaker #3: In order to give a new dynamic to our M&A effort, this is to be expected in the coming months as Mathieu takes ownership of the search.

Speaker #6: Okay, okay. Thank you, very clear. Just a follow-up on the M&A. Do you still see, let's say, a high valuation environment, especially in the US?

Thomas Renaud: Okay. Thank you. Very clear. Just a follow-up on the M&A. Do you still see a, let's say, high valuation environment, especially in the US? You mentioned that during the full year results last March. Is it still the case?

Speaker #6: You mentioned that during the full-year results last March. Is that still the case?

Speaker #3: It is still the case. Unfortunately for us, we've seen a few targets in the US, which were between 16 and 20 times the EBITDA, and we don't pay that kind of price.

Jérôme Bruhat: It is still the case, unfortunately for us.

Thomas Renaud: Okay.

Jérôme Bruhat: In a few targets in the US, which were between 16 and 20 times the EBITDA, and we don't pay that kind of price.

Speaker #6: Okay. Okay. Very clear. Thank you. Thank you very much.

Thomas Renaud: Okay. Very clear. Thank you. Thank you very much.

Speaker #1: As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again.

Operator: As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. Once again, it is star 1 1 to ask a question. We are now going to proceed with our next question. The question comes from the line of Beltrán Palazuelo from DLTV Europe. Please ask your question.

Speaker #1: Once again, it's *star 11* to ask a question. We are now going to proceed with our next question, and this question comes from the line of Beltran Palace Willow from DLTV Europe.

Speaker #1: Please ask your question.

Beltrán Palazuelo: Hello. Good morning. Thank you for taking my question.

Beltran Palazuelo: Hello. Good morning. Thank you for taking my question.

Speaker #7: Hello, good morning. Thank you for taking my question.

Jérôme Bruhat: Good morning.

Speaker #3: Good morning.

Speaker #7: Good morning. The first question is regarding margins. You were commenting that you have adjusted your pricing. So, what should we expect for the second half, more or less, in margins?

Beltrán Palazuelo: Good morning. The first question is regarding the margins. You were commenting that you have adjusted your pricing. What should we expect for the H2, more or less, in margins? Then maybe from 2027 to end of the plan, more or less, I know this company thinks in the long term, but what should, let us say, the end margin be around 2030? My second question is regarding CapEx. With the 5%, let us say, organic growth that you are estimating, what should be the organic CapEx, more or less, to the end of the plan? My other question is, let us say, if you could update what is, let us say, apart from the current dividend policies in, let us say, that you were talking about the extreme high valuations for M&A. Then we can see how not only yourself, but also the sector has come down.

Beltran Palazuelo: Good morning. The first question is regarding the margins. You were commenting that you have adjusted your pricing. What should we expect for the H2, more or less, in margins? Then maybe from 2027 to end of the plan, more or less, I know this company thinks in the long term, but what should, let us say, the end margin be around 2030? My second question is regarding CapEx. With the 5%, let us say, organic growth that you are estimating, what should be the organic CapEx, more or less, to the end of the plan? My other question is, let us say, if you could update what is, let us say, apart from the current dividend policies in, let us say, that you were talking about the extreme high valuations for M&A. Then we can see how not only yourself, but also the sector has come down.

Speaker #7: And then maybe from '27 to the end of the plan, more or less—I know this company thinks in the long term—but what should, let's say, the end margin be around 2030?

Speaker #7: Then my second question is regarding CapEx. With a 5%—let's say—organic growth that you're estimating, what should be the organic CapEx, more or less, to the end of the plan?

Speaker #7: My other question is, let's say, if you could, let's say, update what is, let's say, apart from the current dividend policies in, let's say, that you were talking about extreme high valuations for M&A.

Speaker #7: And then we can see how not only your stock, but also the sector, has gone down. Is a buyback in the cards for, let's say, the capital budgeting?

Beltrán Palazuelo: Is the buyback in the tool for, let's say, the capital budgeting? My last question is regarding competitive landscape. If you could update everybody how you see, let's say, your strength, competitive advantage, how is it evolving against competitors? Thank you very much.

Beltran Palazuelo: Is the buyback in the tool for, let's say, the capital budgeting? My last question is regarding competitive landscape. If you could update everybody how you see, let's say, your strength, competitive advantage, how is it evolving against competitors? Thank you very much.

Speaker #7: And my last question is regarding the competitive landscape. If you could update everybody on how you see, let's say, your strengths and competitive advantage, and how it is evolving against competitors?

Speaker #7: Thank you very much.

Speaker #3: Thank you very much. So, first question about the margins. We don't update any margin guidance during the year. What we said, and we confirmed today, is that because of the rise in raw material costs linked to the oil shock, we expect the margin to be a bit more difficult this year than it was last year.

Jérôme Bruhat: Thank you very much. First question about the margins. We do not update any margin guidance during the year. What we said, and we confirm today is we said that because of the rise of raw materials cost linked to the oil shock, we expect the margin to be a bit more difficult this year than it was last year. We have strong headwinds in terms of synthetic raw materials that we all buy outside. We have different costs that have risen because of the oil shock. That is why we said, and we confirm that we want to be this year in an EBITDA margin in line with the three past years' average. That remains our goal and our target. On one hand, those adverse effects. On the other hand, those pricing adjustments should absorb, at least partially, those shocks.

Speaker #3: We have strong headwinds in terms of synthetic raw materials that we all buy externally, and we have different costs that have risen because of the oil shock.

Speaker #3: That's why we said, and we confirmed, that we want to be, this year, at an EBITDA margin in line with the average of the past three years.

Speaker #3: So, that's remained our goal and our target. On one hand, there are those adverse effects. On the other hand, those pricing adjustments should absorb at least partially those shocks.

Speaker #3: And that's why we remain quite confident that we can meet our EBITDA margin in line with the past years. Our long-term guidance remains to be above 20%.

Jérôme Bruhat: That is why we remain quite confident that we can meet our EBITDA margin in line with the past years. Our guidance long term remains to be above 20%. That is what we announced at the TMV. We are definitely above last year and this H1. But again, we expect this to soften a bit in the H2 in order to be in line in the total year with the past three years. On your second question on the CapEx, we have guided also that we need to invest in our future. We need to invest between 4% and 5% of our sales in CapEx. I would say ongoing investment in the industry. Stronger investment in IT that have started more or less in end of 2024.

Speaker #3: That's what we announced at the TMD. We are definitely above last year in this first half. But again, we expect this to soften a bit in the second half in order to be in line, for the total year, with the past three years.

Speaker #3: On your second question on the CapEx, we have also guided that we need to invest in our future. We need to invest between 4% and 5% of our sales in CapEx.

Speaker #3: I would say ongoing investment in the industry—stronger investment in IT that started more or less at the end of '24. And some, I would say, customer-facing investments, creative centers, as we said before, in order to give ourselves a stronger footprint in the new regions of growth that we're targeting.

Jérôme Bruhat: Some, I would say, customer-facing investments, creative centers, as we said before, in order to give ourselves a stronger footprint in the new regions of growth that we are targeting. The last example is a good example with the opening of the creative center in Brazil, where our business is flourishing and we need to conquer even more customers. But that is true also for Singapore, for Mexico, and a few others that are guiding us a bit of CapEx. But again, we will be extremely disciplined this year to make sure that we remain within this bracket and that we do not overstretch our CapEx investments above this 5% gap that we have. Below 4% would be, for us, missing some investment opportunities. Again, we are a very profitable business, and we believe we can continue to invest, but in a disciplined way.

Speaker #3: The last example is a good one, with the opening of a creative center in Brazil, where our business is flourishing and we need to conquer even more customers.

Speaker #3: But that's true also for Singapore, for Mexico, and a few others that are guiding a bit of capex. But again, we will be extremely disciplined this year to make sure that we remain within these brackets.

Speaker #3: And that we don't overstretch our capex investments above this 5% cap that we have. Below 4% would mean for us missing some investment opportunities.

Speaker #3: Again, we are a very profitable business, and we believe we can continue to invest, but in a disciplined way. We are investing in—last year, we opened a new factory in Indonesia.

Jérôme Bruhat: We are investing. We have opened last year a new factory in Indonesia, and we can see the first effect on this region, which is very dynamic. We are expanding, as we speak, our unit in Mexico. We are investing steadily in our big and older units in Grasse and in the US. We will also invest in the coming months in China, where we see a huge potential for our naturals. That is why we need this investment, but again, within this bracket of 4% to 5%. Your third question is on the dividends and buybacks. As you could see from last year, we have a policy of increasing, step by step, our dividends payout. Also, we are again privileging and prioritizing our long-term investment.

Speaker #3: And we can see the first effects on this region, which is very dynamic. We are expanding, as we speak, our unit in, in our big and older units in Graz and in the US.

Speaker #3: And we will also invest in the coming months in China, where we see a huge potential for naturals. That's why we need this investment.

Speaker #3: But again, within this bracket of 4% to 5%. Your first question is on the dividends and buyback. As you could see from last year, we have a policy of increasing, step by step, our dividend payout.

Speaker #3: So we are again privileging and prioritizing our long-term investments. But still, we believe there is some room to grow the dividend payout in, I would say, a steady way, as you could see from last year.

Jérôme Bruhat: Still, we believe there is some room to grow the dividend payout in, I would say, in a steady way, as you could see from last year. There is no plan of buyback in the end of the year and in the years to come. This is not something that we have in mind. We prefer to invest where we can in our capabilities. To your last point on competitive advantage, obviously, we are on the right segment, and we are pretty happy that the naturals segment is seen by everyone as a very good segment to be in, very promising in terms of growth, higher than the market average. That is why we have a plan 2030 above the market average. It is true that being a very strong segment, some competitors are a bit more active in this segment.

Speaker #3: And there is no plan for a buyback at the end of the year or in the years to come. This is not something that we have in mind.

Speaker #3: We prefer to invest where we can in our capabilities. And to your last point on competitive advantage, obviously we are in the right segment.

Speaker #3: And we are pretty happy that the naturals segment is seen by everyone as a very good segment to be in—very promising in terms of growth.

Speaker #3: Higher than the market average. That's why we have a 2030 plan above the market average. It is true that, being a very strong segment, some competitors are a bit more active in this segment.

Speaker #3: But we continue to see our clear advantage: to continue to build new supply chains, to be one step ahead in terms of the breadth of our catalog, the quality of our products, and we are going global.

Jérôme Bruhat: We continue to see our clear advantage to continue to build new supply chains, to be one step ahead in terms of the broadness of our catalog, the quality of our products, and we are going global. What we used to be mostly in Europe is now going global. We have expanded some capacities to produce and to extract naturals in the US with the Phasex acquisition. We are building new capabilities here, as I said just a bit earlier, in China. We are seeing our advantage to, at the same time, be in the center of a hot segment, which is the natural, and on the other hand, to continue to build on our unique know-how and stronger international footprint.

Speaker #3: What used to be mostly in Europe is now going global. We have expanded some capacities to produce and to extract naturals in the US with the FedEx acquisition.

Speaker #3: And we are building new capabilities here, as I said just a bit earlier, in China. So we are seeing our advantage to be, at the same time, in the center of a hot segment, which is the naturals.

Speaker #3: And, on the other hand, to continue to build on our unique know-how and stronger international footprint.

Speaker #1: Thank you very much for the detailed answer.

Beltrán Palazuelo: Thank you very much for the detailed answer.

Beltran Palazuelo: Thank you very much for the detailed answer.

Speaker #3: You're welcome. Thank you.

Jérôme Bruhat: You are welcome. Thank you.

Speaker #2: We are now going to proceed with our next question, and the questions come from the line of Marilyn Four from Bernstein. Please ask your question.

Operator: We are now going to proceed with our next question. The question comes from the line of Maryline Faure from Bernstein. Please ask your question.

Speaker #2: Yes, good morning. Can you hear me?

Maryline Faure: Yes, good morning. Can you hear me?

Marie-Line Fort: Yes, good morning. Can you hear me?

Speaker #3: Yes. Good morning.

Jérôme Bruhat: Yes. Good morning.

Speaker #2: Yeah, okay. Good morning. My first question is to clarify what you said about the margin guidance. I had in mind that you were targeting EBIT margin in line with the past three years.

Maryline Faure: Yeah. Okay. Good morning. My first question is to clarify what you said about the margin guidance. I had in mind that you were targeting EBIT margin in line with the past three years. Is it correct or is it more on the EBITDA level? First question. Second question is about raw material costs. Could you tell us how they expect to evolve going forward? In particular, has this summer droughts increased the risk of potential shortage and potential price increase? Last question is about the flavor division. In the past, your strong performance was driven in part by the rapid growth of the beverage business. Are you now seeing any signs of this market reaching a certain level of maturity? Have you other relay of growth for the next structure?

Marie-Line Fort: Yeah. Okay. Good morning. My first question is to clarify what you said about the margin guidance. I had in mind that you were targeting EBIT margin in line with the past three years. Is it correct or is it more on the EBITDA level? First question. Second question is about raw material costs. Could you tell us how they expect to evolve going forward? In particular, has this summer droughts increased the risk of potential shortage and potential price increase? Last question is about the flavor division. In the past, your strong performance was driven in part by the rapid growth of the beverage business. Are you now seeing any signs of this market reaching a certain level of maturity? Have you other relay of growth for the next structure?

Speaker #2: Is it correct? Or is it more on the EBITDA level? First question. Second question is about raw material costs. Could you tell us how the expected evolve going forward?

Speaker #2: And in particular, has this summer's drought increased the risk of a potential shortage and potential price increase? And my last question is about the Flavor division.

Speaker #2: In the past, your strong performance was driven in part by the rapid growth of the beverage business. Are you now seeing any signs of this market reaching a certain level of maturity?

Speaker #2: And have you also relayed the growth for the next structure?

Speaker #3: Yes, thank you. So first, to answer the first question clearly: yes, we are— I would not call it guidance, but we are targeting, because again, it's very hard to guide and we don't guide on EBITDA. But we have said at the beginning of the year that we were targeting an EBITDA in line with the past three years.

Jérôme Bruhat: Yes. Thank you. First, to answer clearly the first question. Yes, I would not call it guidance, but we are targeting because, again, it is very hard to guide, and we don't guide on EBITDA, but we have said at the beginning of the year that we were targeting an EBITDA in line with the past three years. That's at the EBITDA level, not at the margin level. It is obviously a message that, and we said it from the beginning, that the EBITDA last year was absolutely record with exceptionally good buying conditions that unfortunately are not repeating this year. Nevertheless, the basis is still very strong, and we believe that we can remain on our trajectory. Again, we have now a strong level over the past three years that we are confident to maintain this year.

Speaker #3: That's at the EBITDA level, not at the margin level. It is obviously a message, and we said it from the beginning, that the EBITDA last year was absolutely record, with exceptionally good buying conditions.

Speaker #3: But unfortunately, they are not repeating this year. Nevertheless, the basis is still very strong, and we believe that we can remain on our trajectory. Again, we now have a strong level over the past three years that we are confident to maintain this year.

Speaker #3: And our target long-term 2030, announced above 20%, remains the target for the many reasons we question on raw material cost. So, no major threat again. The only big threat we see is that synthetic materials will be affected by the oil price.

Jérôme Bruhat: Our target long-term 2030, announced above 20%, remains the target for the many reasons we explained. Your question on raw material costs. No major threat. Again, the only big threat we see is the synthetic materials will be affected by the oil price. On the other hand, the other materials are in line with the previous years. Again, each year we have up and down in the naturals. Sometimes the coffee goes up, sometimes it goes down. Sometimes the patchouli goes up, sometimes it goes down. So it's really a mixed bag, but no major effect we expect on naturals, which is more than half of our purchasing. On that token, the summer drought didn't affect our botanicals. No effect to be expected on pricing. Again, the pricing volatility these days comes more from oil-based products than from earth-based products.

Speaker #3: On the other hand, the other materials are in line with previous years. Again, each year we have ups and downs in the naturals.

Speaker #3: Sometimes the coffee goes up, sometimes it goes down. Sometimes the patchouli goes up, sometimes it goes down. So it's really a mixed bag, but no major effect to expect on naturals, which is more than half of our purchasing.

Speaker #3: And on that note, the summer drought didn't affect our botanicals. No effect is to be expected on pricing. Again, the pricing volatility these days comes more from oil-based products than from earth-based products.

Speaker #3: So that's why this natural half is going to be more or less stable, while this synthetic half that we have to buy outside will probably be a little bit more affected.

Jérôme Bruhat: That's why this natural half is going to be more stable, while this synthetic half that we have to buy outside will probably be a little bit more affected. Your last question on flavors. Yes, it's mostly based on a good dynamic in our ability to win new products that has driven fantastic growth last year. Again, flavor last year was above 10% growth, which was largely over the industry. This year it's a little bit softer, slightly negative in the H1, but we remain quite confident that we will catch up, at least partially, for the rest of the year. Beverage is clearly where our naturals express themselves the best, and that's why we are so exposed. This category, I would not call it mature, but some parts of this category are a bit softer this year, especially the alcoholic half, which is softer.

Speaker #3: And your last question on flavors—yes, it's mostly based on a good dynamic in our ability to win new products. That drove fantastic growth last year.

Speaker #3: Again, flavors last year was above 10% growth, which was largely over the industry. This year, it's a little bit softer—slightly negative in the first half, but we remain quite confident that we will catch up at least partially for the rest of the year.

Speaker #3: Beverage is clearly where our naturals express themselves the best, and that's why we are so exposed. I would not call this category mature, but some parts of it are a little bit softer this year, especially the alcoholic part, which is softer.

Speaker #3: The rest remains quite strong, and we have new relays of growth. We see, for example, in dairy, quite good dynamics with some major clients.

Jérôme Bruhat: The rest remains quite strong. We have new relays of growth. We see, for example, in dairy, a quite good dynamic with some major clients. As we all know, the functional food is going up, and this opens doors in some sports drinks, some dairy products where we are quite strong in and where we are working on. We have set up a new organization last year with a category manager. One, obviously, for beverage, which is our biggest footprint, but another one in dairy and another one in more savory products, where we are quite smaller than in the beverage. So we clearly expect some relays of growth in those categories where historically we have not been very present.

Speaker #3: As we all know, the functional food market is growing. This opens doors in some sports drinks and some dairy products, where we are quite strong and where we are working on.

Speaker #3: And we've set up a new organization last year with category managers—one, obviously, for beverage, which is our biggest footprint, but another one in dairy, and another one in more savory products, where we are quite smaller than in beverage.

Speaker #3: So we clearly expect some areas of growth in those categories where, historically, we have not been very present.

Speaker #2: Thank you very much. We are now going to take the next question.

Operator: Thank you very much. We are now going to take the next question.

Speaker #3: Thank you.

Jérôme Bruhat: Thank you.

Speaker #2: And the questions come from the line of True Flowers. First, and most capital, please ask your question.

Operator: The question has come from the line of Tru 花 ers. Fessen with Capital, please ask your question.

Speaker #4: Hi. As a shareholder, I really appreciate your discipline on M&A valuations. But I guess, given where your stock's trading—which is far below even the disciplined prices that you pay—wouldn't a buyback of, say, €20 million a year be a great use of capital?

[Analyst]: Hi. As a shareholder, I really appreciate your discipline on M&A valuations. But I guess, given where your stock's trading, which is far below even the discipline prices that you pay, wouldn't a buyback of, say, EUR 20 million a year be a great use of capital? Your business is obviously one of the premier flavors and fragrances businesses around the world.

Speaker #4: Your business is obviously one of the premier flavors and fragrances businesses around the world.

Speaker #3: Yeah, thank you for the question. Again, we know that a buyback is always an option, but we consider today's trading a bit of a dip, and we don't consider that as our long-term level or the launch there.

Jérôme Bruhat: Yeah. Thank you for the question. Again, we know buyback is always an option, but again, we consider the trading today a bit of a dip, and we don't consider our long-term level belongs there. For now, and until now, the company has always privileged investment. So a buyback is, as I said in my first comment, not something we are considering in the short term.

Speaker #3: And for now, and until now, the company has always prioritized investments. So a buyback is, as I said in my first comment, not something we are considering in the short term.

Speaker #2: We are now going to proceed with our next question, and the questions come from the line of Journaling from BNP Paribas. Please ask your question.

Operator: We are now going to proceed with our next question. The question's come from the line of Joan Lim from BNP Paribas. Please ask your question.

Speaker #5: Hello. Sorry, I've just got a follow-up question. In fragrances, did you see any pre-buying in consumer fragrances? I think some of your peers have mentioned that there might have been some.

Joan Lim: Hello. Sorry, I've just got a follow-up question. In fragrances, did you see any pre-buying in consumer fragrances? I think some of your peers had mentioned there might have been some. Excluding that rebound from the customer de-stocking last year, what was the underlying performance of the fragrance division? Maybe also just to follow up on the flavors questions before, has Robertet benefited from this shift, these regulatory changes away from synthetic ingredients in the US, because I think your portfolio is actually quite well-positioned. So trying to get a sense of how much that's benefited your results so far and going forward, how does the pipeline look like? Thank you.

Speaker #5: And excluding that rebound from the customer destocking last year, what was the underlying performance of the Fragrance division? And maybe also just a follow-up on the Flavors.

Speaker #5: I have a question. Has Robertet benefited from these regulatory changes away from synthetic ingredients in the US? Because I think your portfolio is actually quite well positioned.

Speaker #5: So, I'm trying to get a sense of how much that's benefited your results. What does the pipeline look like? Thank you.

Speaker #3: Thank you, Joan. I will let Julian speak on fragrance. Thank you, Joan. We didn't see any real pre-buy effect overall. It might be very spotty, but that's not a trend that we have seen at Robertet.

Jérôme Bruhat: Thank you, Joan. I will let Julien answer on fragrance.

Julien Maubert: Thank you, Joan. We did not see any real pre-buy effect overall. It might be very spotted, but that is not a trend that we have seen at Robertet. As we described, the performance is mostly coming from some fine fragrance brands, and especially some of the emerging brands, what we like to call the rising stars, that have been very successful lately, especially in North America, Latin America, and Middle East. That really drives the growth. Then, to link back to your last question, we see a premiumization effect that is benefiting Robertet, and that is where I think our position in natural products, in our creativity, I think allows us to have a good momentum and be dynamic across categories when brands and where products are looking for premiumization and kind of elevation of more creative formula, more emotional effect, more rituals product.

Speaker #3: As we described, the performance is mostly coming from some fine fragrance brands, and especially from some of the emerging brands—what we like to call the "rising stars"—that have been very, very successful lately, especially in North America, Latin America, and the Middle East. These brands are really driving the growth.

Speaker #3: And then, to link it back to your last question, we see a premiumization effect that is benefiting Robertet. And that's where I think our position in natural products and our creativity, I think, allow us to have good momentum and be dynamic across categories when brands and products are looking for premiumization and kind of elevation of more creative formulas, more emotional effect, more ritual products. And that's true across all the consumer categories.

Julien Maubert: That is true across all the consumer categories.

Jérôme Bruhat: To kind of use the fine fragrance standard, but also in personal care, in home care, and in public care. I think we are benefiting from it.

Speaker #3: We kind of use the fine fragrance standard, but also in personal care, in home care, and in public care. And I think we are benefiting from it.

Speaker #5: All right. Thank you. And on Flavors?

Joan Lim: All right. Thank you. On flavors?

Speaker #3: Yes, thank you, Joan. So, I think Julian is absolutely right that really the premiumization of the segment and the number of brands is continuing to be, I would say, sparking a lot of momentum.

Jérôme Bruhat: Yes. On the So I think Julien Maubert is absolutely right that really the premiumization of the segment and the number of brands is continuing to be gathering a lot of momentum. So that's where, first, the fine fragrance, which everybody expected at some point to slow down, continues to be dynamic, strongly dynamic. Second, the premiumization comes in new segments, which opens the door to new brands in other categories than fine fragrance. We can see that in some regions very clearly, especially the US. On flavor, to your point, we haven't seen a big change and big demand for naturals coming from the regulatory change. Obviously, we would love to, but the honest answer is, we expect the naturals to be a strong underlying trend, but not a direct and reactive statement, I would say, to the new regulatory conditions.

Speaker #3: So that’s where, first, the fine fragrance—which everybody expected, at some point, to slow down—continues to be dynamic. Strongly dynamic. And second, the premiumization comes in new segments, which opens the door to new brands in other categories and fine fragrance, and we can see that in some regions very clearly, especially the US.

Speaker #3: On flavors, to your point, we haven't seen a big change and big demand for naturals coming from the regulatory change. Obviously, we would love to, but the honest answer is we expect naturals to be a strong underlying trend, but not a direct and reactive statement, I would say, to the new regulatory conditions.

Speaker #3: Those conditions have affected quite strongly the tolerance, but not yet strongly the flavors business.

Jérôme Bruhat: Those conditions have affected quite strongly the colorants, but not yet strongly the flavor business.

Speaker #5: Okay. Thank you.

Joan Lim: Okay. Thank you.

Speaker #3: You're welcome.

Jérôme Bruhat: You are welcome.

Speaker #2: Thank you. We are now going to proceed with our next question. And the questions come from the line of Gabrielle from Davy Stockbrokers.

Operator: Thank you. We are now going to proceed with our next question. The questions come from the line of Gabrielle Benitez from Davy Stockbrokers. Please ask your question. Your line is open.

Speaker #2: Please ask your question. Your line is open.

Gabrielle Benitez: Hi, good morning. Can you hear me now?

Gabriele Bunyte: Hi, good morning. Can you hear me now?

Speaker #6: Hi. Good morning. Can you hear me now?

Speaker #3: Yeah, we still don't hear you, but thank you for writing your questions. So we will answer them for the whole audience. I will just speak out your question.

Jérôme Bruhat: Yeah. We still do not hear you, but thank you for writing your question. We will answer them. For the whole attendants, I will just speak out your question. Your first question was, as EBITDA decline was attributed to investment in capacity, headcount, and systems, can you help us understand the phasing of that spend? Is much of the H1 increase already in the run rate? Should we expect a similar level of incremental investments in H2 and also going into full year 2027? We need to differentiate two things. The EBITDA decline is only attributable to a softer top line and, I would say, a disciplined run rate of OpEx costs, namely personnel costs and external charges that have continued to run.

Speaker #3: So your first question was, has EBITDA declined? It was attributed to investment in capacity, headcount, and systems. Can you help us understand the phasing of that spend?

Speaker #3: Is much of the H1 increase already in the run rate? And should we expect a similar level for incremental investments in H2, and also going into full year '27?

Speaker #3: So we need to differentiate two things. The EBITDA decline is only attributable to a softer top line, and I would say a disciplined run rate of OPEX costs, namely personnel costs and external charges.

Speaker #3: That has continued to run, and indeed the margin is, at this point, very well protected. But the costs are running in order to keep the investment, especially investment in IT and investment in new capacity.

Jérôme Bruhat: Indeed, the margin at this point is very well protected, but the costs are running in order to keep investment, especially investment in IT and investment in new capacity. The other topic is more the CapEx, which does not really reflect or does not strongly reflect in EBITDA. You are right. Part of it is amortization, and part of it is attributable to this run rate of CapEx that we keep between 4% and 5%. As most of those CapEx last year happened in the H2, we are a bit strongly impacted this year. You should not expect something very different on the full year than this ongoing run rate where the projects are running. Again, we are quite confident in our future, and that is why we continue to invest at the defined pace to increase capacity, increase international footprint, and modernize parts of the company.

Speaker #3: The other topic is more the CAPEX, which doesn't really reflect, or doesn't strongly reflect, in EBITDA. But you're right, part of it is amortization.

Speaker #3: And part of it is attributable to this run rate of CAPEX that we keep between 4% and 5%. But as most of that CAPEX last year happened in the second part, we are a bit more strongly impacted this year.

Speaker #3: But you should not expect something very different for the full year compared to this ongoing run rate where the projects are running, and again, we are quite confident in our future.

Speaker #3: And that's why we continue to invest at the defined pace: to increase capacity, increase our international footprint, and modernize parts of the company. Your second question is: will fragrance return to strong growth in the first half?

Jérôme Bruhat: Your second question is, with fragrance returning to strong growth in the H1, have those trends continued through July and August? Have you seen growth-based trends across customer categories and geographies, or is growth being driven by a smaller number of accounts? Here again, as we have with us Julien, who is the head of fragrance, I will let him give you some more detailed answers.

Speaker #3: Have those trends continued through July and August? And are you seeing growth-based trends across customer categories and geographies, or is growth being driven by a smaller number of accounts?

Speaker #3: So here again, as we have with Julian, the Head of Fragrance, I will let him give you a more detailed answer.

Speaker #4: Yes, so we have seen the trend continue, and we are positive on the momentum and the dynamic of the first half. That should continue for the second half.

Julien Maubert: Yes. We have seen the trend continue, and we are positive on the momentum and the dynamic of the H1, and that should continue for the H2. Regarding the customer category and the geography, I think I answered partially, but I will repeat myself a little bit. There is a stronger dynamic in fine fragrance, but overall, all category for us are dynamic, and especially when we talk about premiumization, we are seeing a very good success rate. Geographically, once again, Europe, Latin America, and Middle East are very dynamic. Europe remains good, and Asia remains a little bit more dynamic for us than the rest of the world. Overall, the trend is really good. The dynamic is good.

Speaker #4: Regarding the customer category and the geography, I think I answered partially, but I will repeat myself a little bit. So, yeah, there is a stronger dynamic in fine fragrance, but overall all categories for us are dynamic.

Speaker #4: And especially when we talk about premiumization, we have, I think, a very good success rate. Geographically, once again, Europe, Latin America, and the Middle East are very dynamic.

Speaker #4: Europe remains good, and Asia remains a little bit more dynamic for us than the rest of the world. So overall, the trend is really good.

Speaker #4: The dynamic is good. And sorry, the last part of the question about smaller accounts, which have shared in the past that we were probably less exposed to global to less exposed to global customer to global CPG and more exposed to local and regional champion and smaller player which are driving the growth at Robertet.

Julien Maubert: Sorry, the last part of the question about smaller accounts, we have shared in the past that we were probably less exposed to global customer, to global CPG, and more exposed to local and regional champion and smaller players, which are driving the growth at Robertet, and I think are performing a little bit better than the global CPG right now in the market.

Speaker #4: And I think we are performing a little bit better than the global CPG right now in the market.

Speaker #3: I think this session is already a little bit over time, so we will stop the session right now. I hope we answered your questions.

Jérôme Bruhat: I think this session is already a little bit over time, so we will stop the session right now. I hope we answered your questions. Thank you very much all of you for your attendance. Again, for those who have more questions, I invite you to contact directly our investor relations responsible, who is Matthieu Lugez. The contact is on our press release, and he will give you more details on more technical questions. We, as a team with Isabelle Pardies, our CFO, and Julien, will regroup if needed with Matthieu to give you a more detailed answer. Thank you for attendance this morning. You know our next financial moment will be February with the total year numbers.

Speaker #3: I thank you very much, all of you, for your attendance. And again, for those who have more questions, I invite you to contact directly our investor relations responsible, who is Mathieu Léger.

Speaker #3: And the contact is on our press release. He will give you more detailed and more technical answers. We, as a team, with Isabelle Pardiet, our CFO, and Julien, will regroup if needed with Mathieu to give you a more detailed answer.

Speaker #3: Thank you for your attendance this morning. And you know, our next financial moment will be in February, with the total year numbers.

Operator: This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you.

Browse all earnings call transcripts

Half Year 2026 Robertet SA Earnings Call

Request TrialDemo

Robertet

Earnings