Brenntag reports a broad based increase in Q2 operating EBITDA
Brenntag continued to perform well in the second quarter of 2018: the Group increased its key performance indicators by a clear margin, with operating EBITDA growing at a double-digit rate again on a constant currency basis.
The encouraging performance was underpinned primarily by organic growth. Against this background, Brenntag forecasts clear growth in its key performance indicators operating gross profit and operating EBITDA for financial year 2018 as a whole.
Brenntag generated sales of €3,215m in the second quarter of 2018, a year-on-year increase of 12.2% on a constant currency basis (+7.1% as reported). Operating gross profit rose by 8.4% on a constant currency basis (+3.1% as reported) to €677m. Operating EBITDA also showed clear growth at constant currency rates, rising by 10.7% (+4.8% as reported) to €231.3m.
Profit after tax was up on the prior-year figure of €106.8m to €118.3m in the second quarter of 2018.
Steven Holland, Chief Executive Officer of Brenntag AG, said: “We are pleased with the strong performance which is underpinned by broad based organic growth and positive contributions from the acquisitions leading to a double-digit increase in operating EBITDA. Together with the first quarter, this made for a solid first half of 2018 for us – with organic growth strongly outperforming prior year.”
The Europe, Middle East and Africa (EMEA) region continued to perform well in the second quarter of 2018, once again recording healthy increases in its key performance indicators. Operating gross profit climbed by 6.4% year on year to €293.5m. Operating EBITDA grew at a double-digit rate of 10.6% to €103m.
With another strong performance in almost all customer industries, Brenntag North America achieved excellent quarterly results and growth rates. Operating gross profit reached €281.4m, a year-on-year increase of 8.5%.
Operating EBITDA showed a clear rise of 9.8% to €108m. In the second quarter of 2018, the reported growth rates for the North America region once again reflected the weakening of the US dollar compared with the previous year.
In an economic environment that remained challenging, Brenntag Latin America achieved results on a par with the prior-year period thanks to its broad regional footprint. Operating gross profit reached €40.7m in the second quarter of 2018, an increase of 2%. Operating EBITDA stood at €8.7m.
The excellent quarterly results delivered once again in Asia Pacific confirm that the segment is a promising growth region where Brenntag continues to deliver above average rates of increase. On a constant currency basis, operating gross profit rose by 23.5% year on year to €57.2m and operating EBITDA by 24.1% to €19.8m. In addition to strong organic growth, acquisitions made very encouraging contributions to earnings.
In light of the results and the performance in the regions in the first half of 2018, the Brenntag Group continues to expect clear growth in its key performance indicators operating gross profit and operating EBITDA. Assuming that exchange rates remain unchanged over the period to year-end, Group operating EBITDA is forecast to be in the €870 to 900m range.
Steven Holland said, “Our forecast is based on the positive performance from our Group in the first six months of 2018. Provided that the global macroeconomic environment remains largely unchanged, we can expect further increases in our regions in the second half of the year. Brenntag remains well positioned for further growth.”
For more information, visit: www.brenntag.com
13th August 2018
