Magle Group’s financial results for the second quarter anticipated to fall short of market expectations.

The ongoing trade war initiated by the Trump administration has severely affected the macroeconomic environment in 2025, marked by a slowdown in global growth, rising trade tensions, persistent supply chain disruptions, and continued volatility in the supply and cost of raw materials. This, in turn, has gravely impacted Magle Group’s ability to fulfil market expectations. Despite ongoing operational progress and integration efforts across the company’s recent acquisitions, Magle Group now anticipates that the quarter's net sales and operating profit will be significantly lower than market expectations, with EBITDA for the period expected to be negative. This EBITDA impact is primarily attributable to one-off integration expenses and constrained manufacturing activity due to supply delays.

It is important to emphasise that the Q2 performance should be viewed as isolated and not indicative of a structural decline. Magle Group has not lost market share nor experienced the termination of any significant customer contracts. Instead, persistent delays in raw material deliveries, despite firm supplier commitments, extended well into the late stages of the second quarter, delaying the realisation of revenues that had been forecast for the quarter.

Key Contributing Factors:

1. Weaker than Anticipated Sales Performance: Certain high-value orders within the DSM product line and CDMO service portfolio have been delayed into the latter half of 2025. While these orders remain in the pipeline, the timing mismatch has created short-term pressure on top-line growth.
2. Raw Material Shortages: Magle Group has experienced intermittent raw material supply constraints, particularly for components used in DSM and biopolymer-based products. These challenges have been driven by inventory stockpiling among US-based firms, which has led to reduced availability across European supply channels. While contingency sourcing strategies are in progress, the resulting disruptions have delayed certain manufacturing cycles and delivery schedules.
3. Non-Recurring Integration Costs: During the first half of 2025, Magle Group incurred one-time costs related to the continued integration and consolidation of Magle Biopolymers (formerly PK Chemicals). These investments were essential to harmonise systems, processes, and infrastructure across the expanded Group footprint. Although non-recurring, they have adversely impacted the current year’s EBITDA and operating margins.

Although the second quarter is estimated to fall short of market expectations, Magle Group is optimistic that the third quarter will see significant improvements and align more closely with expectations.

Despite these headwinds, Magle Group remains committed to its long-term strategy. The Group continues to invest in innovation, maintain strong customer relationships, and expand its commercial and clinical pipeline across its DSM, Biopolymer, and Stem Cell technology platforms.

A full update, including revised guidance and a strategic outlook, will be provided in conjunction with the release of the Q2 2025 interim report.