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Brenntag SE (BNTGF) (FY 2024) Earnings Call Highlights: Navigating Challenges with Strategic ...

In This Article:

  • Revenue: EUR16.2 billion, a 3% decline from the previous year.

  • Operating Gross Profit: EUR4.03 billion, stable year-over-year.

  • Operating EBITA: EUR1.1 billion, a 13% decrease from the prior year.

  • Free Cash Flow: EUR893 million, down from EUR1.7 billion in 2023.

  • Earnings Per Share (EPS): EUR3.71, compared to EUR4.73 last year.

  • Dividend Proposal: EUR2.10 per share, maintaining or increasing for the 14th consecutive year.

  • Net Financial Liabilities: EUR2.8 billion.

  • Leverage Ratio: Net debt to operating EBITDA at 1.9x.

  • ROCE: 14%, down from 17.7% in 2023.

  • Store Closures: 33 locations closed in 2024.

  • Acquisitions: Eight acquisitions with an enterprise value of around EUR550 million.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Brenntag SE (BNTGF) maintained a stable operating gross profit of EUR4.03 billion despite a challenging market environment.

  • The company generated a strong free cash flow of EUR893 million, demonstrating effective cash management.

  • Brenntag SE (BNTGF) proposed a stable dividend of EUR2.10, marking the 14th consecutive year of maintaining or increasing dividend payouts.

  • The company successfully executed eight acquisitions in 2024, enhancing its market position and growth potential.

  • Brenntag SE (BNTGF) achieved significant sustainability milestones, including winning the ICIS Best Digital Innovation Award 2024 and receiving a Platinum rating in the EcoVadis Sustainability Assessment.

Negative Points

  • Sales for the full year 2024 were EUR16.2 billion, a 3% decline compared to the previous year.

  • Operating EBITA decreased by 13% year over year, reaching EUR1.1 billion, which was at the low end of the guidance.

  • Earnings per share fell to EUR3.71 from EUR4.73 in the previous year, impacted by the sale of Raj Petro Specialties and other special items.

  • The company faced intense competition and pressure on industrial chemical selling prices, affecting gross profit per unit.

  • Operating expenses increased by 4.7% compared to the prior year, driven by inflationary effects and higher volume-related costs.

Q & A Highlights

Q: How should we think about the price and volume mix through 2025, and what are your thoughts on the phasing throughout the year? A: Christian Kohlpaintner, CEO: We expect a slight sequential improvement in volumes and pricing throughout 2025, similar to the trends seen in 2024. This improvement is expected to be consistent quarter-by-quarter rather than being concentrated in the second half of the year.