Brenntag reports good Business in EMEA and Asia, but experiences Head Winds in NAM and LAM
Global chemical distributor Brenntag AG (Mülheim an der Ruhr, Germany) has published mixed results for Q2-2016 earlier this week. Brenntag’s sales decreased slightly versus Q2-2015, to EUR 2’664.0 mn (-1.0% as reported). Gross Profit was EUR 603.6 mn, an increase of 3.1% as reported, or 6.3% on a constant currency basis. Overall, the group generated a second-quarter operating EBITDA of EUR 215.8 mn, at +0.2% flat on a year-on-year comparison as reported (an increase of 3.3% on a constant currency basis).
Brenntag highlighted that strong growth in the EMEA and Asia Pacific regions and the contributions from recent acquisitions were offset by declining earnings due to continued weak demand in North America, above all from customers in the North American Oil & Gas business, and what Brenntag calls a “persistently difficult situation in Venezuela”.
Profit after tax was down slightly at EUR 102.1 mn (compared to EUR 108.1 mn in Q2-2015). This translates into earnings per share attributable to Brenntag shareholders of EUR 0.66 per share. At EUR 164.7 mn in the second quarter of 2016, free cash was only marginally below the high prior-year figure (EUR 167.1 mn).
For 2016 as a whole, Brenntag is forecasting an increase in its key performance indicators, namely operating Gross Profit and operating EBITDA. Group operating EBITDA is expected to be between EUR 800 and 840 mn.
Source: Brenntag press release
HGE – DCG / 12.08.2016