**Summary**
Zotefoams plc, a global leader in supercritical fluid foam technology, released a trading update for the financial year ended 31 December 2025, reporting strong performance ahead of market expectations. Key highlights include
1. **Revenue Growth**Full-year revenue reached £158.5 million, a 7.2% increase from £147.8 million in 2024, driven by robust performance across all regions, particularly in EMEA and North America.
2. **Record Profitability**Adjusted profit before tax surged 37.9% to £21.1 million, a new record for the Group, exceeding market forecasts.
3. **Regional Performance**
**EMEA**Revenue grew 9.4% to £123.9 million, led by strong footwear demand and the contribution from the newly acquired Overseas Konstellation Company S.A. (OKC).
**North America**Revenue increased 6.7% to £30.1 million, supported by Transport & Smart Technologies and a recovery in Construction & Other Industrial in Q4.
**Asia**Revenue declined to £4.2 million, but the region is expected to gain importance with the upcoming Vietnam footwear manufacturing facility.
4. **Strategic Progress**The Group advanced its Expanding Beyond the Core strategy with the OKC acquisition, continued commercial transformation, and investments in innovation hubs and partnerships in Vietnam and South Korea.
5. **Financial Strength**The balance sheet remains robust, with a reduced leverage multiple of 0.8x and a new £90 million multicurrency revolving credit facility to support future strategic investments and M&A.
6. **Outlook**Zotefoams anticipates moderate demand in 2026 from footwear customers due to normalizing inventory requirements but remains well-positioned for long-term sustainable growth.
Preliminary results for 2025 are expected in March 2026. The Group’s CEO, Ronan Cox, emphasized the strong performance in challenging market conditions and the commitment to strategic growth initiatives.