Distributor sees lower Operating EBITDA Growth than previously expected
Global chemical distributor Brenntag AG (Essen, Germany) has adjusted downward its outlook for the full year 2019, in view of slowing demand for chemical products observed at the end of Q2-2019. Based on preliminary and hence non-audited figures, Brenntag expects an Operating Gross Profit in Q2-2019 of approx. EUR 723 mn (versus EUR 677.0 mn in Q2-2018). This results into an expected Operating EBITDA of approx. EUR 266 mn (compared with EUR 231.3 mn in Q2-2018).
Brenntag further said that during Q2-2019, “the macroeconomic environment weakened noticeably in the two main Brenntag regions [EMEA and North America]. In addition, important indicators for Brenntag as well as the company’s own market assessment point to a continued difficult environment in the course of this year.”
In view of the current business development trend and considering “the deterioration of the overall economic environment”, the company is adjusting the outlook for Operating EBITDA in 2019 to a growth rate of 0% to 4% (from a previously communicated range 3% to 7%). This is on the basis of constant exchange rates and using the same accounting standard as before, i.e. not considering the different treatment of leasing expenses under the new IFRS16 rule, Brenntag noted.
Brenntag is scheduled to publish the financial results for Q2-2019 and a forecast for the full year 2019 on 07. August 2019.
HGE – DCG / 17.07.2019