Zotefoams has issued a resilient 3Q25 update, showing sales stable YoY at CER, an impressive outturn given tough comparatives (3Q24 +54%). The Board has reaffirmed its confidence in meeting FY25 revenue and adj PBT consensus expectations (SCM sales +5%, adj. PBT +39%). This implies a return to growth in 4Q with confirmed orders providing a good level of visibility over the remainder of the year. Strategically, FY25 was a pivotal year for ZTF, with the new CEO setting out a clear plan for long-term value creation at a CMD in March. In less than a year, significant progress has been made embedding the innovation strategy with new partnerships and key appointments made. This gives confidence in the journey ahead. BUY rec reaffirmed with c.33% upside to our unchanged TP.
