Brenntag shows stable Earnings and narrows Guidance Range for the full Year
Global chemical distributor Brenntag AG (Mülheim an der Ruhr, Germany) has published results for Q3-2016 today. Brenntag’s sales increased slightly versus Q3-2015, to EUR 2’619.2 mn EUR (+0.4% as reported). Gross Profit was EUR 593.9 mn, an increase of 4.1% as reported, or 5.5% on a constant currency basis. Overall, the group generated a third-quarter operating EBITDA of EUR 205.2 mn, at +0.4% marginally up on a year-on-year comparison as reported (a increase of 2.0% on a constant currency basis). When compared with Q2-2016, all three parameters are slighly weaker.
Brenntag says that the group’s performance was influenced by a number of “divergent factors”. The economic trends seen in Q1- / Q2-2016 have continued. The existing business showed growth particularly in the Asia Pacific region, while the North America and Latin America regions were impacted by what Brenntag calls “the persistently challenging economic environment”. In North America weak demand from the Oil & Gas industry has had a continued negative Impact, while recent acquisitions have started to make positive contributions. In Latin America the collapse of the economy in Venezuela and the difficult economic situation in Brazil are weighing on Performance. The EMEA region experienced a decline in sales (EUR 1’133.2 mn vs. EUR 1’172.1 mn or -3.2% as reported), but managed to increase Operating EBITDA slightly to EUR 88.2 mn (up 1.1% from EUR 87.2 mn in Q3-2015), as acquisitions were integrated successfully.
For 2016 as a whole, Brenntag is now forecasting a narrower range of operating EBITDA at EUR 800 to 820 mn (compared to EUR 800 and 840 mn forecasted back in August, and EUR 807 mn achieved in 2015).
Profit after tax was down slightly at EUR 93.4 mn (compared to EUR 94.7 mn in Q3-2015). This results in earnings per share attributable to Brenntag shareholders of EUR 0.60 per share. At EUR 190.1 mn in the third quarter of 2016, free cash was again high (the prior year figure was 191.0 EUR mn).
Source: Brenntag press release
HGE – DCG / 09.11.2016