Brenntag shows solid Performance and sees Contribution from Acquisitions
Global chemical distributor Brenntag AG (Essen, Germany) has published results for Q2-2018 last week. Sales and profitabilty were were up, driven by a solid performance of the existing business as well as contributions from acquisitions.
Brenntag’s sales in the second quarter were EUR 3’215. mn, +7.1% as reported and +12.2% on a constant currency basis when compared the same quarter last year. (Operating) Gross Profit was EUR 677.0 mn, an increase of 3.1% as reported, and +8.4% on a constant currency basis. Overall, the group generated a second-quarter Operating EBITDA of EUR 231.3 mn (equivalent to a 7.19 % Return on Sales / ROS Margin) , 4.8% up on a year-on-year comparison as reported (a double-digit increase of 10.7% on a constant currency basis).
Profit after tax was up EUR 11.5 mn at EUR 118.3 mn. This results in earnings per share attributable to Brenntag shareholders of EUR 0.76 per share (up from EUR 0.69 per share in Q2-2017).
Working capital increased to EUR 1’790.7 mn, again up from EUR mn at the end of the previous quarter and up 18.6% from the end of 2017, mostly due to the increase of chemical prices and the expansion of the business. At a level of EUR 147.9 mn in the second quarter of 2018, free cash flow was slightly up from the prior-year figure of EUR 123.4 mn.
On the Operating EBITDA level, the EMEA region’s figures increased by 8.6% as reported to EUR 103.0 mn (+10.6% on a constant currency basis). As reported, North America was only showing a marginal increase of +1.3% to EUR 108.0 mn. However, at +9.8% on a constant currency basis profit growth almost reached double-digit territory. Latin America was rather weak at EUR 8.7 mn, -10.3% as reported and basically “flat” on a constant currency basis. At EUR 18.8 mn, +17.9% as reported and +24.1% on a constant currency basis, Asia Pacific posted the highesr relative profit growth.
Assuming no major changes in exchange rates, Brenntag issued a guidance for full-year 2018 of an Operating EBITDA in the range of EUR 870 to 900 mn.
Additional details can be obtained via the links below:
https://www.brenntag.com/media/documents/news/news_2018/20180808_pm_q2_2018_en_final.pdf
HGE – DCG / 13.08.2018
