In This Article:
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Revenue: EUR4.1 billion, 1% increase year-over-year.
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Operating Gross Profit: EUR1.02 billion, 3% increase year-over-year.
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Operating EBITDA: EUR281 million, 5% decline year-over-year.
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Free Cash Flow: EUR247 million, lower than the prior year.
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Earnings Per Share (EPS): EUR0.82, down from EUR1.18 in Q3 2023.
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Gross Profit Margin: 25% of sales, sequential expansion.
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EBITA Conversion Ratio: 28%, down from 30% in the prior year.
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Brenntag Specialties Operating Gross Profit: EUR301 million, 3% increase year-over-year.
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Brenntag Essentials Operating Gross Profit: EUR718 million, 3% increase year-over-year.
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Net Financial Liabilities: EUR2.7 billion at the end of Q3 2024.
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Leverage Ratio: 1.8 times net debt to operating EBITDA.
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Full Year EBITA Guidance: EUR1.1 billion to EUR1.2 billion.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Brenntag SE (BNTGF) reported a 3% increase in operating gross profit, reaching EUR1.02 billion for the third quarter of 2024.
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The company confirmed its full-year EBITA guidance of EUR1.1 billion to EUR1.2 billion, indicating confidence in its cost takeout measures and strategic initiatives.
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Brenntag SE (BNTGF) has made significant progress in its Horizon 2 strategy, focusing on optimizing its business portfolio and improving gross profit per unit.
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The company successfully executed several acquisitions, including PIC and PharmaSpecial in Brazil, expanding its Life Science business in key markets.
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Brenntag SE (BNTGF) launched CO2Xplorer, an innovative carbon emissions calculation tool, enhancing its sustainability leadership in the industry.
Negative Points
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Operating EBITDA declined by 5% year-over-year to EUR281 million, reflecting ongoing challenges in the competitive market environment.
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Earnings per share decreased to EUR0.82 from EUR1.18 in the third quarter of 2023, impacted by the sale of Raj Petro Specialties.
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The company experienced a lower overall bottom line result due to higher volume-driven costs and inflationary impacts.
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Brenntag SE (BNTGF) acknowledged that its Specialties division is not likely to close the performance gap with pure-play peers before 2027.
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The company faced intense competition and pressure on industrial chemical selling prices, affecting its gross profit per unit.
Q & A Highlights
Q: You've confirmed the guidance for the year, which is EUR1.1 billion to EUR1.2 billion. Given the year-to-date profit, should the market expect the lower end of the range? Also, what has changed regarding the legal separation of Essentials and Specialties? A: We are confident in our guidance range due to our performance and cost measures. Regarding the separation, the focus is on performance improvement and cost management. The gap to pure-play peers is due to our current portfolio, which we are working to improve by 2027.