Holland Colours: Contribution Margin Up in First Half, Revenue Down 2.8%
For the first half of fiscal year 2026/2027, ended 30 September 2026, Holland Colours saw its contribution margin rate rise from 47.1% to 49.4% of revenue. This increase offset lower volumes in part of its core business and higher operating expenses.
Net income came to EUR 2.0 million, compared with EUR 2.1 million a year earlier. Management said overall performance was below its expectations and indicated that it remains cautious for the rest of the fiscal year.
Revenue of EUR 55.2 Million and Stable Operating Income at EUR 2.7 Million
Published on 30 October 2026, the half-year accounts of the Dutch manufacturer of colour concentrates and additives show revenue of EUR 55.2 million, compared with EUR 56.8 million a year earlier. This 2.8% decline includes a negative currency effect of 0.2 points.
The cost of materials fell to EUR 28.0 million from EUR 30.0 million, lifting the contribution margin to EUR 27.3 million, an increase of EUR 0.5 million. The group attributes this improvement to disciplined margin management, despite the volatility of raw material and freight costs.
Operating expenses rose 2.5% to EUR 24.6 million, mainly due to inflation and investments linked to the strategic roadmap (IT, commercial efficiency, targeted automation). Operating income remained stable at EUR 2.7 million, and earnings per share went from EUR 2.44 to EUR 2.29.
The Americas Partly Offset the Decline in EMEIA and Asia
The EMEIA division, the group's largest with EUR 28.8 million in revenue, recorded a decline of 8.4%, which includes the loss of business in Russia following the tightening of sanctions. The packaging and building and construction segments were the most affected, while coatings and sealants recovered.
Conversely, the Americas division saw its dollar sales rise 7.6%, driven mainly by higher volumes in Dark Profiles and in applications for UHT dairy products. Its operating income reached EUR 1.47 million, compared with EUR 1.23 million, and exceeded that of the EMEIA region (EUR 1.18 million, compared with EUR 1.64 million).
Asia, with EUR 3.9 million in sales, fell 8.8% in dollars, mainly in building and construction and in packaging. Management specified that growth initiatives, notably in Dark Profiles, progressed but fell short of its ambitions.
Net Cash Flow Reduced to EUR -0.5 Million and a Cautious Management
Net cash flow came to EUR -0.5 million, compared with EUR -10.1 million a year earlier. Net operating cash flow was EUR 3.8 million, compared with EUR -0.6 million, and dividends paid were reduced to EUR 1.7 million from EUR 5.9 million, their amount being calculated on net income for 2025/2026.
At the annual results published on 2 June 2026, the group had reported net income of EUR 3.48 million for that fiscal year, on revenue of EUR 109.01 million. As of 30 September 2026, cash stood at EUR 9.7 million, compared with EUR 10.2 million at the end of March, and inventories at EUR 20.2 million, compared with EUR 17.5 million.
For the second half, Holland Colours said it remains cautious in the face of persistent inflation, volatility in raw material and freight costs, trade tensions, and weak demand in part of its core business.
Its priorities focus on restoring sales growth, protecting margins, controlling costs and generating cash.
The half-year accounts have been neither audited nor reviewed by a statutory auditor, and the publication of the 2026/2027 annual accounts is scheduled for 27 May 2027.
The half-year can be summed up as a contribution margin rate raised to 49.4%, which allowed operating income to be maintained at EUR 2.7 million despite revenue down 2.8%.
