Tag Archives: 2019

Azelis releases first Sustainability Report

New Report covers group-wide Sustainability Efforts in 2019

Specialty chemicals and food ingredients distributor Azelis S.A. (Munsbach, Luxembourg) has recently published its first sustainabilty report that covers the groups global sustainability efforts and actions in 2019. The company said it wanted to report on its performance and demonstrate “… how its commitments to sustainability are put into action, by creating shared value with our innovative and sustainable products and having a positive impact on the communities around the globe.”


Azelis had obtained its second and consecutive EcoVadis Gold rating earlier this year. A few months ago it also communicated that it has gained membership in the Together for Sustainability (“TfS”) chemical industry initiative.


Source: Azelis press release


HGE – DCG / 03.08.2020

DKSH publishes Sustainabilty Report for 2019

Zurich based Company outlines Sustainability Goals until 2030 alongside its new Company Purpose “Enrich People’s Lives”

Market expansion services provider (and speciality chemicals  and ingredients distributor) DKSH AG (Zurich, Switzerland) has published its third Sustainabilty Report covering performance in 2019.


DKSH also said it commits to targets in alignment with the UN Sustainable Development Goals. These include becoming climate neutral by 2030, as well as expanding training opportunities for employees, promoting health and safety for fleet drivers and increasing energy efficiency by 2025.


About a year ago, DKSH has achieved a “Silver” rating from Paris-based agency EcoVadis, based on an overall score of 50 points. With that the company ranked among the top 14% of companies in the industry at the time.


Source: DKSH press release, DistriConsult Analysis


HGE / DCG – 18.06.2020

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

ICIS Top-100 Chemical Distributors List: Call for Data Entry

ICIS together with Fecc, NACD, CBA, Associquim and RDC are calling for a Submission of 2019 Company Data by 13. March 2020

ICIS is compiling the Top 100 Chemical Distributors ranking for the 22 May 2020 issue of ICIS Chemical Business – the most popular and comprehensive listing of distributors in the world – as done in previous years.


ICIS is undertaking this global effort with the support of Fecc (European Association of Chemical Distributors), the NACD (National Association of Chemical Distributors), the CBA (Chemical Business Association), Associquim (Brazilian Association of Chemical and Petrochemical Distributors), and RDC (Responsible Distribution Canada).


Distributors are invited to include the requested information as follows.
Please include the geographic breakdowns of sales (please provide actual amounts and not a percentage), as this is important for the regional rankings as well. Note that ICIS will also list those beyond the Top 100, as the list had more than 250 companies last year.


The deadline for responses is Friday 13 March 2020.




Company Name: 




2019 Sales: 


Sales by geography (Please provide actual amounts and NOT as a percentage please)
            North America:            
            Latin America:              
            Middle East & Africa:


Name of President or CEO:  (please specify job title)


Website address: 


Products or product categories: (list up to 15 – for example: caustic soda, paper chemicals, solvents, aromatics, etc.)


Services: (up to 10 – for example: blending, packaging, storage, etc.: )


Assets: (up to 5 – for example: 5 warehouses, 20 trucks, etc.: )


Are your sales primarily from trading activities?   Y/N


What % of sales are from trading versus traditional distribution?:



Source: Fecc website (adapted)


HGE / DCG – 03.03.2020

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