Brenntag shows general Sales Growth combined with Variation in Operating EBITDA across Geographies

Global chemical distributor Brenntag AG (Mülheim an der Ruhr, Germany) has published results for Q2-2017 earlier this week. Brenntag’s sales increased 12.7% versus Q2-2016, to EUR 3’001.4 mn EUR (+11.5% on a constant currency basis). Gross Profit was EUR 641.3 mn, an increase of 6.2% as reported, or 5.2% on a constant currency basis. Overall, the group generated a second-quarter Operating EBITDA of EUR 219.8 mn (equivalent to 7.32% Retorn on Sales / ROS) , 1.9%  up on a year-on-year comparison as reported (an increase of 0.8% on a constant currency basis).

Brenntag says that the group’s performance was very encouraging in North America, where the group “achieved a clear increase in the results (with Operating EBITDA up 14.4% as reported at EUR 106.6 mn or 9.45% ROS) in an improved economic environment.” EMEA posted an Operating EBITDA decline of 6.6% as reported (EUR93.9  mn or 7.5% ROS) , mostly on week volume demand in Scandinavia. Latin America reported a decline of 14.9% (EUR 9.7 mn or 4.75% ROS) against a backdrop of “sustained contraction in industrial production throughout the region”. Asia-Pacific was down 2.9% to EUR 16.8 mn (or 5.90 ROS) with a clear drop in demand in Indonesia, partially compensated by better performance in other countries.

Profit after tax was up at EUR 106.8 mn (compared to EUR 102.1 mn in Q2-2016). This results in earnings per share attributable to Brenntag shareholders of EUR 0.69 per share.

At EUR 122.5 mn in the second quarter of 2017, free cash flow was  down on the prior year figure of EUR 164.7 mn, due to higher working capital caused by increased chemical prices.

Source: Brenntag press release

HGE – DCG / 11.08.2017