Brenntag Reinforces Position in Challenging Macroeconomic Environment
The chemical distributor Brenntag recorded growth in sales and gross profit compared with the first quarter of the previous year. The company again achieved stable business performance in a challenging global economic situation.
Sales increased by 2.1% on a constant currency basis (1.4% as reported) to €2,419.1 million (Q1 2012: 2,384.8 million). One of Brenntag's key performance indicators, gross profit, increased by 1.3% year-on-year to 77.9 million on a constant currency basis (0.6% as reported). Considering that the reporting quarter had fewer business days than previous year's quarter this represents a rise in gross profit per business day by 4.9% on a constant currency basis. Operating EBITDA saw a more moderate development, declining by 3.3% on a constant currency basis (4.0% as reported) to €164.7 million (Q1 2012: 171.6 million).
Profit after tax amounted to €69.8 million in the first quarter of 2013 (Q1 2012: €79.3 million), resulting in earnings per share attributable to Brenntag's shareholders of to €1.35 (Q1 2012: €1.53).
The free cash flow amounted to 70.5 million in the first quarter of 2013 after €78.0 million in the same period of the previous year.
Steven Holland, CEO of Brenntag: "It is clear that this year will present very similar challenges to 2012. The global economic situation is even more demanding and economic development is still muted. Our sales performance should be understood in light of these factors and the fact that the first quarter had considerably fewer working days than the same period of the previous year. Our strategy and the resilience of our business model are elementary and effective pillars in an economic environment that remains challenging."
European business develops in line with regional economy
In Europe, external sales increased slightly to €1,151.9 million, a year-on-year rise of 0.4% on a constant currency basis (0.3% as reported). Gross profit declined by 2.3% on a constant currency basis (2.6% as reported) to €232.5 million. This development was slightly better than the downturn in industrial production in the region. In Europe, operating EBITDA decreased by 5.8% on a constant currency basis (6.2% as reported) to €75.7 million.
Stable gross profit in North America
Compared with the same period of the previous year, gross profit in the North America region increased by 1.2% on a constant currency basis (0.4% as reported) to €179.2 million. Performance in the region was supported by the acquisition of Altivia in December 2012. Operating EBITDA in North America declined slightly from €74.0 million in the first quarter of 2012 to €69.7 million in the period under review (#5.0% on a constant currency basis, #5.8% as reported).
Latin America participates in strong market development
Brenntag Latin America recorded healthy market growth, with gross profit rising from €40.6 million in the previous year to €42.4 million in the first quarter of 2013. This represents a growth rate of 7.9% on a constant currency basis (4.4% as reported). Operating EBITDA declined slightly as against the previous year, falling by 3.1% on a constant currency basis (5.9% as reported) to €12.7 million.
Continuous growth in Asia Pacific
Brenntag Asia Pacific again recorded strong growth in the first quarter of 2013, thereby underlying the continuity of its development. Gross profit improved by 27.9% on a constant currency basis (28.4% as reported) to €31.2 million. Among other reasons, this growth was due to the contribution from the acquisition of the ISM/Salkat Group. In the first quarter of 2013, operating EBITDA in the Asia Pacific segment rose by an impressive 30.4% on a constant currency basis (31.7% as reported) to €13.3 million.
