Brenntag on the move, and moving up

A QUALITY QUARTER

FINANCIALS • BRENNTAG IS LOOKING POSITIVE, BOTH WITH ITS LATEST QUARTERLY RESULTS AND ITS MOVE INTO A NEW HI-TECH HEADQUARTERS BUILDING IN ESSEN

BRENNTAG HAS CLOSED its third quarter books with a post-tax profit of €100.8m, up from €93.4m this time last year, from sales worth just under €2.9bn, themselves up 10.4 per cent year-on-year. At the same time, gross profit and operating EBITDA rose over the period by 4.3 per cent and 5.3 per cent, respectively, going from €593.9m and €205.2m to new figures of €619.4m and €216m.

We delivered a strong performance in the third quarter of 2017,” says CEO Steven Holland. “All regions contributed to this result and showed positive growth. North America

BRENNTAG IS GETTING PREPARED FOR THE FUTURE

WITH A NEW HQ AND IMPROVING RETURNS in particular delivered excellent earnings and strong organic growth. We are pleased with this encouraging performance from the group in the third quarter. Against this background, we are confirming the forecast given for 2017 as a whole.”

RESULTS BY REGION Breaking this down geographically, Brenntag reveals that in its home territory of Europe, the Middle East and Africa (EMEA), operating gross profit rose 3.2 per cent year-on-year to €269.6m, with operating EBITDA increasing by 2.7 per cent to €90.6m. “In the third quarter, the region began to implement the announced efficiency programme, which is scheduled to be completed in the course of the year,” it says.

Across the Pond, its North America business reported “very encouraging” increases in earnings, driven primarily by “strong organic growth”. As such, operating gross profit rose 4.3 per cent over the period to reach €265.6m, while operating EBITDA climbed to €103.6m, a year-on-year increase of 7.6 per cent. Meanwhile, Brenntag also “lifted earnings in the still volatile Latin America region”. Thanks mainly to improving economic conditions in Brazil, it finished the quarter with a regional operating gross profit of €42m and an operating EBITDA of €10.6m. Respectively, these figures represent increases on the prior year quarter of 0.7 per cent and 12.8 per cent.

Similarly, Brenntag’s Asia Pacific operations also enjoyed an “encouraging” quarter. “This positive performance was supported both by organic growth and the successful integration of recent acquisitions,” the company says, noting that operating gross profit rose 10.1 per cent over the period to hit €51.1m concurrent with a 12.6-per-cent leap in operating EBITDA, which crossed the line at €18.8m.

FUTURE FORECAST Looking to the future, the distributor reports that “in light of the third-quarter results and economic trends in the regions”, it is confirming its forecast for 2017 as a whole. Brenntag, it states, “continues to expect growth in its key performance indicators”, with operating EBITDA “still anticipated to be in the €820m to €850m range”. While the future remains unwritten, one thing that seems certain is that when it comes to closing its 2017 books, the company will be firmly ensconced in its new corporate headquarters, the House of Elements in Essen, having now officially taken charge of the keys to this purpose-built six-storey building.

“The new building provided Brenntag with an opportunity to design the House of Elements according to its own requirements,” Holland says. “We’ve made good use of this: the result is a representative, forward-looking and sustainable company headquarters that offers our employees an attractive, modern working environment. We’ll continue to successfully advance our company’s development in this shared location.” HCB www.brenntag.com