Tag Archives: 2019 Results

Brenntag reports 2019 Results, plans to raise Dividend

Operating EBITDA passes EUR 1 bn Mark, driven by initial Application of IFRS 16 Rule on Leases

Global chemical distributor Brenntag AG (Essen, Germany) has published the annual results for 2019 today. Except for EMEA, all regions (i.e. North America, Latin America and Asia-Pacific) reported growth in Sales and Operating Gross Profit. Earning per share rose slightly to EUR 3.02 per share (up from EUR 2.98 per share).  This allows for a further increase of the dividend to EUR 1.25 per share or equivalent to a payout ratio of 41.4% of the Profit after Tax attributable to Brenntag’s shareholders, subject to approval by the AGM in June.


Brenntag’s sales in 2019 were EUR 12’821.8 mn, +2.2% as reported and -0.3% on a constant currency basis when compared with last year. (Operating) Gross Profit was EUR 2’821.7 mn, an increase of 6.0% as reported, and +3.4% on a constant currency basis. Overall, the group reported an Operating EBITDA of EUR 1’001.5 mn,  up 14.4% from the EUR 875.5 mn in 2018 as reported (an increase of 11.3 % on a constant currency basis). However, Brenntag noted that the change in the IFRS 16 accounting rule regarding treatment of leasing obligations had a positive impact of EUR 116 mn on the Operating EBITDA. Discounting that effect, the increase was +1.1% to EUR 885.5 mn only.


Profit after tax was up sightly by EUR 6.9 mn at EUR 469.2 mn. This results in earnings per share attributable to Brenntag shareholders of EUR 3.02 per share (up from EUR 2.98 per share).


Working capital decreased slightly to EUR 1’767.7 mn (down 2.2% from EUR 1’807.0 mn at the end of  2017). Declining chemical prices during 2019 helped here. At a level of EUR 837.3 mn in 2019, free cash flow was EUR 837.3 mn, up almost 60% from the EUR 525.2 mn realised in 2018, amongst other things helped by  a reduction in Net Working Capital, Brenntag said.


In EMEA weak demand and a lack of economic drive during the whole year 2019 created a difficult operating environment. On the Operating EBITDA level, the EMEA region increased by 5.4 % as reported to EUR 406.3 mn (+5.6% on a constant currency basis). However this includes a positive effect of EUR 46 mn from IFRS 16, Brenntag said.


North America had a good start into the year, but later the market environment got more difficult for the company. The region reported an increase of the Operating EBITDA, +15.9% to EUR 474.8 mn (+10.1 % on a constant currency basis).  The positive impact from IFRS 16 is EUR 53 mn (equivalent to a 13 percent-points, leaving a operational contribution of 2.9 percent-points). Particularly Q4 was weak in that region, with a decline of Operating EBITDA of EUR 17 mn (-16% when compared with the same quarter in the previous year).


Latin America reached an Operating EBITDA of EUR 55.9 mn, up 41.1% as reported from EUR  39.9 mn (+38.0% on a constant currency basis), despite  “a continued volatile and difficult market environment” in the region”. The figure includes a positive effect of EUR 9 mn from IFRS 16.


Asia Pacific contributed an Operating EBITDA of EUR 101.1 mn, up 29.8% from the EUR 77.9 mn reported for 2018 (+24.7 % on a constant currency basis. The IFRS 16 effect was a positive EUR 9 mn (or ca. 11 percent-points). Main driver was the positive contribution from acquisitions, Brenntag sai in the statement. 


Brenntag said it expects a “positive performance at Operating EBITDA level in 2020, assuming  that exchange rates remain stable. The company is operating in a macroeconomic environment of considerable uncertainty. The outlook is based on the assumption that the effects of the macroeconomic risks and, in particular, the effects of the crisis regarding the new coronavirus remain very limited.”


Brenntag’s new CEO, Dr. Christian Kohlpaintner, who took office at the beginning of the year 2020 commented that “Brenntag is a strong brand with a good reputation in its markets. Our company offers great potential for organic profitable growth. My Board of Management colleagues and I will therefore make every effort to unlock more of this potential. Going forward, we will not only maintain our highly market-centric approach, but also focus to a greater extent on optimizing our processes, procedures and structures, thereby creating the conditions crucial to long-term organic growth.”


The company is currently examining its internal structures, processes and organisational forms along the value chain, where it sees potential for improvement in harmonisation and standardisation. Besides a “stringent internal execution of initiatives and measures”,  Brenntag also intends to further expand its already very customer-centric approach.


Additional details can be obtained via the links below:





Source: Brenntag press release, earnings call and annual report; DistriConsult analysis


HGE – DCG / 04.03.2020

IMCD reports further Revenue and EBITA Growth in 2019

Acquisitions again contribute significantly to Growth at IMCD

Specialty Chemicals distributor IMCD N.V. (Rotterdam, The Netherlands) reported earlier this week on the performance for 2019. Sales (or revenues as IMCD calls it) were EUR 2’689.6 mn, up 13% from EUR 2’379.1 mn in 2018 (+12% on a constant currency basis). IMCD say the growth trend is driven by the the effect of the first-time inclusion of acquisitions (+13%) and  a small currency effect at +1%. Business in the existing units declined slightly by 1%.

Gross Profit grew by 12% from  EUR 536.1 mn in 2018 to EUR 599.3 mn (+11% on a constant currency basis), Operating EBITA 11% from EUR 202.1 mn in 2018 to EUR 224.8 mn in 2019 (+10% on a constant currency basis) . This represents a return on sales of 8.4%, virtually unchanged from the previous 8.5% of the previous year and a conversion margin (= Operating EBITA as percentage of Gross Profit) that was almost flat at a level of 37.5 % (down 20 Bps from the 37.7% achieved in 2018).

The resulting in Cash Earnings per Share (i.e. before amortisation) were  EUR 2.85, an increase of 13% when compared with the result for 2018 at EUR 2.53. Free cash flow increased by EUR 55.7 mn, from EUR 166.5 mn in 2018 to EUR 222.2 mn for 2019.

IMCD plans to propose a dividend of EUR 0.90 per share in cash, up 13% from the EUR 0.80 per share paid for 2018.  Subject to approval at the AGM in May 2020, this would result in the company paying EUR 47.3 mn or 32% of the Net Result 2019, adjusted for non-cash amortisation charges and net of tax, a similar percentage level as in 2018.

The (geographical) operating segments again showed a mixed picture, mostly driven by strong M&A activities in the Americas.  EMEA (defined as Europe, Turkey and Africa) posted revenues of EUR 1’314.6 mn, up 6% from EUR 1’240.8 mn as reported for 2018 (+6% on a constant currency basis). Operating EBITA in the region declined 1%  from EUR 127.8 mn to EUR 126.3 mn (-1% when adjusted for currency effects).

Asia-Pacific generated revenues of EUR 392.0 mn (up from EUR 335.7 mn, +17% as reported, +16% in constant currency). Operating EBITA in that region came in at EUR 35.7 mn, which compares with EUR 31.2 mn in 2018, up 14% as reported and 13% when adjusted for currency effects. In March 2019 IMCD divested IMCD Australia’s Muskvale Flavours & Fragrance manufacturung business, which posted sales of EUR 3.6 mn with a Gross Profit margin of ca. 60%. Later in the year, acquisitions were made in Singapore and Malysia (ca. EUR 4 mn sales in 2018), India (ca. EUR 10 mn sales in FY 2019, ending 31.03.2019) and South Korea (ca. EUR 44 mn sales p.a. on a fully consolidated basis).

In the Americas  revenues were EUR 983.0 mn, up 22% from the EUR 802.6 mn as reported for 2018 (or +18% adjusted for currency effects). Organic revenue development was -2%. The acquisitions made in 2018 (E.T. Horn) and 2019 (Unired Quimicas SAS and DCS) contributed 20 percentage-points of growth. Favourable currency trends added another 4 percentage-points. Operating EBITA was EUR 77.8 mn, up 30% from the EUR 60.1 mn in the previous year (a growth of 24% at constant currency).

Structural cost decreased by EUR 2.0 mn, resulting in an Operating EBITA for the “holding companies” (i.e. the head office in Rotterdam and regional head offices in Sinagpore and New Jersey, United States of America) of EUR -15.0 mn (compared to EUR -17.0 mn in 2018).

The original press release can be accessed via the link below:


Source: IMCD press release

HGE / DCG – 28.02.2020



Univar Solutions reports Q4-2019 and Full Year 2019 Results

Univar Solutions shows Growth in USA and LATAM, partially offset by Decline in Canada and EMEA

Global chemical distributor Univar Inc. (Downers Grove, IL – United States) yesterday reported the financial results for the fourth quarter 2019. Consolidated net sales were USD 2’155.0 mn, up 9.3%  (+9.8% at constant currency) compared with USD 1’971.2 mn in fourth quarter 2018.  Growth in the USA of 16.6% and particularly in LATAM (= Latin America) of 36.4%, driven mostly by the Nexeo acquisition, was partially offset by declining sales in Canada (-3.1%) and the EMEA (=Europe, Middle East & Africa) region (-7.5%). Univar attributes the decline in sales mostly to chemical price deflation, which also dampened growth in the USA and LATAM.


Adjusted EBITDA came in at  USD 158.8 mn, up 10.3% (+11.3% at constant currency) from the USD 144.0 mn realised in the fourth quarter of last year. EBITDA growth was particularly strong in LATAM at +47.9%, followed by the USA at +15.6%. Canada improved EBITDA by 5.1% while EMEA was almost falt at +1%.


Overall this resulted in a net loss of USD -55.1 mn or earning per diluted share of USD -0.33, which compares with net income of USD 1.2 mn and earnings per diluted share of USD 0.01 in the fourth quarter of the prior year, respectively. Adjusted net income was USD 50.5 mn, compared to USD 47.5 mn in Q4-2018  and adjusted earnings per diluted share decreased to USD 0.29 in the quarter from USD 0.33 in the fourth quarter of the prior year.


During the fourth quarter Univar was able to reduce the Leverage Ratio to 3.3x from 3.5x at the end of December 2018. Drivers were a strict net working capital management, the proceeds from the divestment of the Environmental Services business and certain real estate sales, Univar Solutions said.


For the full year 2019 Univar posted sales of USD 9’286.9 mn, up 7.6% (+9.3% at constant currency) from USD 8’632.5 mn in 2018. With sales of USD 5’828.5 mn (+17.5%) the USA remained the largest region, followed by EMEA and Canada with USD 1’785.5 mn (-9.6%) and 1’217.8 mn (-6.50%), respectively. Also LATAM saw growth in sales at USD 455.1 mn (+15.7%).


Gross Profits were USD 1’377.8 mn (+22.1% / GP-margin 23.64%) for the USA, USD 424.9 mn (-6.4% / GP-margin 23.80%) for EMEA, USD 233.7 mn (+1.0% / GP-margin 19.19%) for Canada and USD 104.4 mn (+21.1% / GP-margin 22.94%) for the LATAM region, resulting in a total of USD 2’140.8 mn (+12.7% / GP-margin 23.05% on average).


Total Consolidated Adjusted EBITDA was USD 704.2 mn, up 10.0% (11.9% at constant currency), reflecting an EBITDA-margin of 7.59%. This is up 17 Bps from the 7.42% EBITDA-margin reached in 2018. Net loss for 2019 was USD 100.2 mn or USD 0.61 per share. This compares with a net income of USD 172.3 mn or USD 1.21 per share for 2018. Adjusted net income was USD 231.6 mn, equivalent to to adjusted earnings of USD 1.62 per share (on 165.0 mn sahres), down  from the USD 1.62 per share in the year before (based on 142.2 mn shares), which resulted from an adjusted net income of USD 230.2 mn in 2018.

For Q1-2020 Univar Solutions expects to generate an Adjusted EBITDA in the range of USD 150 to 160 mn. For the full year 2020 that range was given at USD 700 to 740 mn, assuming “continued weak end markets and a challenging competitive environment in the first half of the year.” 


Fore further details see the following link:


Source: Univar press release

HGE – DCG / 28.02.2020

DKSH publishes Results for 2019

Performance Materials BU of DKSH reaches CHF 1 Billion Turnover Threshold

Market expansion services provider (and speciality chemicals  and ingredients distributor) DKSH AG (Zurich, Switzerland)  yesterday reported its financial results for 2019. Sales for the group increased by 2.1% (0.3% at constant exchange rates / “CER”) to CHF 11’579 mn (11.58 bn). This includes the impact of both, acquistions and divestments and reflects organic growth at a level of 3.1%.

Operating profit (EBIT) was virtually flat at +0.7% (-1.3% at CER) at CHF 265.4 (against CHF 263.6 mn in 2018). Profit after Tax decreased by 32.3 (33.9% at CER) to CHF 176.1 mn. In 2018 this line item had benefitted from the one-time gain of CHF 75.2 mn from the divestment of the Healthcare business in China. Free cash flow increased 11.5% from CHF 140.6 mn to CHF 156.7 mn. The Board of Directors of DKSK will propose an increase in dividend of 2.7% to CHF 1.90 per share.


The Performance Materials BU (i.e. the specialty chemicals and ingredients distribution business) reported an increase net sales to a level of CHF 1’011.5 mn, 5.3% above 2018 (+ 5.2% at CER). EBIT increased much stronger to CHF 89.7 mn, up 19.4% from the CHF 75.1 mn in 2018 (+17.8% at CER). The unit “successfully expanded business with existing and new clients, realising scale effects”, DKSH said in the statement. With the acquistion of Dols International (Roermond, The Netherlands), DKSH has expanded its market coverage in Europe.


Source: DKSH press release


HGE / DCG – 14.02.2020