Brenntag reports strong Q3 Results but reduces Operating EBITDA Guidance

Global chemical distributor Brenntag AG (Mülheim an der Ruhr, Germany), earlier this month reported that the group has achieved good results in Q3-2015, with Gross Profit and Operating EBITDA exceeding the previous year’s figures. However, continuing low demand from customers in the oil & gas industry and a slowdown in the economic climate particularly in North America, resulted in reduced growth when compared with Q1 and Q2.
Brenntag’s sales in Q3 were at the same level as in the previous quarter (+0.8% as reported), at a level of  EUR 2,607.5 mn. Gross profit came in at EUR 507.5 mn, +9.6% as reported or +1.2% on a constant currency basis. Operating EBITDA increased by 7.5% on the same period in 2014 (as reported) to EUR 204.4 mn, but declined 2.0% on a constant currency basis. Profit after tax and cash flow also increased, when compared with Q3-2014.
The group said, it saw strong results within Europe, Latin America and Asia Pacific. These regions contributed to growth in Q3-2015. Results in North America were impacted by continued weakness in oil & gas, according to CEO Steven Holland. He sees an “overall economic environment [that] remains challenging”, with “a number of factors affecting underlying demand in all regions.”
Regarding the EBITDA guidance, Brenntag said it “takes a more cautious view for the rest of the year to reflect the overall macroeconomic conditions”, expecting an Operating EBITDA for the group between EUR 790 and 810 mn, a figure ca. 5% lower than the initial guidance,  but still above the 2014 level of EUR 727 mn.

Source: Brenntag press release / website; for more detailed information see http://www.brenntag.com/en/pages/Presse/news/2015/Q3_2015.html

HGE – DCG / 30.11.2015