UK's Zotefoams prelim 2025 revenue slightly beats estimates on strong demand

Zotefoams

17/03/2026 07:16

Overview

UK high-performance foam maker's preliminary 2025 revenue rose 7%, slightly beating analyst expectations

Preliminary adjusted basic EPS up 46% as operational delivery and cost management improved

Company completed OKC acquisition, expanding European presence and product range

Outlook

Zotefoams targets organic revenue growth of 7% CAGR to deliver FY2029 revenue of over £230m

Company expects operating profit of over £40m and ROCE above 20% by FY2029

Zotefoams says footwear volumes expected to moderate in 2026 as customers normalise inventory

Result Drivers

ATHLETIC FOOTWEAR DEMAND - Strong demand in athletic footwear supported Consumer & Lifestyle growth, though company expects volumes to normalise as inventory levels adjust

OKC ACQUISITION - Acquisition of OKC expanded European presence and added complementary capabilities, contributing to broader market exposure

COST MANAGEMENT & FOCUSED INNOVATION - Improved profitability attributed to disciplined cost management and tighter alignment of innovation investment with customer demand

Company press release: ID:nRSQ8636Wa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Slight Beat*
GBP 158.50 mln
GBP 158.34 mln (5 Analysts)
FY Dividend
GBP 0.05
FY Net Debt
GBP 31.50 mln
FY Operating Profit
GBP 21.60 mln
FY Pretax Profit
GBP 20 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

Wall Street's median 12-month price target for Zotefoams PLC is GBp590.00, about 57.3% above its March 16 closing price of GBp375.00

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)