Brenntag Results impacted by Currency Fluctuations

Global chemical distributor Brenntag AG (Essen, Germany) has published results for Q1-2018 on Wednesday. Most performance indicators improved on constant currency basis, but adverse currency effects made some flat or declining figures when reported in Euro (EUR).

Brenntag’s sales were virtually flat at EUR 2’975.2 mn (+0.10 % as reported but up 7.9% on a constant currency basis). Gross Profit was EUR 637.6 mn, a slight  decrease of 1.6% as reported, but  +6.6% on a constant currency basis. Overall, the group generated a first-quarter Operating EBITDA of EUR 206.6 mn (equivalent to a 6.94% Return on Sales / ROS) , 2.4%  up on a year-on-year comparison as reported (a double-digit increase of 10.2 % on a constant currency basis).

Profit after tax was up at EUR 106.0 mn (compared to EUR 94.7 mn in Q1-2017). This results in earnings per share attributable to Brenntag shareholders of EUR 0.68 per share, an increase of 11.48%.

At a level of EUR 27.7 mn in the first quarter of 2018, free cash flow was slightly up compared to the prior-year figure of EUR 25.9 mn EUR). Increasing prices for many chemicals led to a continued increase in working capital during Q1-2018.

Across the geographic regions, the picture is somewhat mixed. On the Operating EBITDA level, EMEA increased by 5.6% as reported to EUR 101.4 mn (6.8% on a constant currency basis). North America was reported basically flat at EUR 88.1 mn, but increased by 13.1% on a constant currency basis. The figures for that region reflect a “severe weakening of the US Dollar”, Brenntag said. Latin America had to report some decline with -12.0% reaching EUR 8.1 mn (+0.0% on a constant currency basis). Asia Pacific came in at EUR 17.4 mn, +2.4% as reported and +11.5% on a constant currency basis.

Additional details can be obtained via the link https://www.brenntag.com/media/documents/news/news_2018/20180509_pm_q1_2018_en_final.pdf

Source: Brenntag press release

HGE – DCG / 11.05.2018