Brenntag continues to grow in Q3 and confirms forecast for FY18
Brenntag posted further growth in the third quarter of 2018, recording an increase in its two key performance indicators operating gross profit and operating EBITDA. In light of the generally sound performance, the Brenntag Group is confirming its forecast for full-year 2018.
Brenntag generated sales of €3,221.8m in the third quarter of 2018, an increase of 12.1 percent on the prior-year figure on a constant currency basis. The operating gross profit achieved by the Group came to €678m, a rise of 7.9 percent. Operating EBITDA rose by 5 percent to €224.5m.
Profit after tax was up on the prior-year figure of €100.8m to €110.5m in the third quarter of 2018. At €150.4m, free cash flow was significantly higher than the prior-year figure (€146m). Chemical prices continued to rise in the third quarter of 2018, leading to an increase in working capital.
Steven Holland, Chief Executive Officer of Brenntag AG, said: “In the third quarter, we saw further growth in our existing business combined with positive contributions from our acquisitions. The business demonstrated resilience in a slightly more challenging environment. In light of this generally positive performance, we are confirming our guidance for full-year 2018, forecasting operating EBITDA of between €870 and €900m.”
Brenntag EMEA (Europe, Middle East and Africa) achieved operating gross profit of €285m in the third quarter of 2018, a rise of 7.2 percent. Operating EBITDA grew by 8.1 percent to €95.9m. This was supported by a positive contribution from the recent acquisitions.
The companies in the North America region posted operating gross profit of €290.2m in the third quarter, a rise of 8.3 percent. Operating EBITDA increased by 7.5 percent to €111.9m.
In Latin America, Brenntag posted a good quarter in an economic environment that remains volatile. Operating gross profit in the region grew by 4.2 percent to €42.1m. Operating EBITDA reached €11.2m, an increase of 13 percent.
In Asia Pacific, Brenntag saw a slightly slower business performance in the third quarter of 2018. Operating gross profit rose by 14.3 percent to €57.5m. Operating EBITDA was down by 4.8 percent to €17.8m. Brenntag is keeping to its strategy for the region and during the quarter invested in the expansion of infrastructure and human resources.
In light of these results and the generally positive performance, Brenntag is confirming its guidance for full-year 2018, continuing to forecast clear growth in its key performance indicators operating gross profit and operating EBITDA. The Group confirms that it expects operating EBITDA to be in the €870 to €900m range, assuming that exchange rates remain unchanged over the period to year-end.
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13th November 2018