Zotefoams (LSE:ZTF) reported a 26% increase in revenue to £64.1 million for the four months ended 30 April 2026, supported by strong demand across its key markets and the contribution from Overseas Konstellation Company (OKC). The growth helped offset an anticipated slowdown in the company’s Footwear division. Performance was broad-based geographically, with revenue in EMEA rising 24%, North American sales increasing 30% on an organic basis, and Asian revenue approximately doubling year-on-year.
The company said the performance was supported by additional manufacturing capacity, operational efficiency improvements and strong cash generation. Integration of OKC is progressing in line with expectations, while major expansion projects in Vietnam and South Korea remain on schedule. Zotefoams is also continuing to invest in AI-driven productivity initiatives and has launched a new Global Approved Partners programme aimed at strengthening customer and supply-chain relationships.
Despite ongoing macroeconomic uncertainty, instability in the Middle East and continued cost pressures, the board maintained its expectations for the full 2026 financial year. Current market forecasts indicate revenue of approximately £190.8 million and adjusted profit before tax of around £26.3 million, reflecting management confidence in the group’s long-term growth strategy and operational outlook.
The company’s outlook is primarily supported by relatively attractive valuation metrics, including a low price-to-earnings ratio and a dividend yield of around 2%, alongside a stronger financial performance during 2025 and moderate leverage levels. However, these positives are partly offset by weaker technical indicators, with the shares trading below key moving averages and showing bearish momentum signals.
More about Zotefoams
Zotefoams plc (LSE:ZTF) is a global manufacturer of high-performance foam materials used across sectors including consumer products, lifestyle goods, transportation, smart technologies and industrial applications. The company serves international markets through its core EMEA operations and expanding presence in North America and Asia, including new facilities in Vietnam and a Footwear Innovation Centre in South Korea.
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