Brenntag achieves very strong results in first quarter 2021 by prudently navigating through fast changing market conditions

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Brenntag, the leading global distributor of chemicals and ingredients, reported strong Q1 2021 results, achieving sales of 3,132.5 million EUR. Operating gross profit rose by 7.4% to 764.5 million EUR, while operating EBITDA increased 20.7% to 300.3 million EUR. Despite these gains, earnings per share decreased to 0.63 EUR due to extraordinary provisions related to a tax audit. Brenntag maintains its full-year operating EBITDA guidance between 1.08 to 1.18 billion EUR, with both divisions contributing to growth.

Positive

• Q1 sales reached 3,132.5 million EUR.
• Operating gross profit increased by 7.4% to 764.5 million EUR.
• Operating EBITDA rose by 20.7% to 300.3 million EUR.
• Brenntag Essentials division reported an operating EBITDA increase of 29.2%.
• Brenntag Specialties division achieved operating EBITDA growth of 9.2%.
• Full-year operating EBITDA guidance remains strong at 1.08 to 1.18 billion EUR.

Negative

• Earnings per share decreased to 0.63 EUR from 0.74 EUR due to extraordinary provisions.

ESSEN, Germany, May 11, 2021 /PRNewswire/ -- Brenntag (ISIN DE000A1DAHH0), the global market leader in chemicals and ingredients distribution, reports very strong results in the first quarter 2021 by prudently navigating through fast changing market conditions. The two global divisions Brenntag Essentials and Brenntag Specialties, had a successful start and both contributed strong results.

In Q1 2021, Brenntag generated sales of 3,132.5 million EUR. Operating gross profit rose by 7.4% to 764.5 million EUR. Operating EBITDA grew even more and reached 300.3 million EUR, a year-on-year increase of 20.7%. Earnings per share totaled 0.63 EUR compared to 0.74 EUR a year ago. The reduction is driven by a non-recurring, extraordinary increase in provisions related to a tax audit concerning past handling of alcohol taxes.

Since go-live on January 1, 2021, the company is steered in the new organizational set-up with two global divisions: Brenntag Essentials and Brenntag Specialties.

The Brenntag Essentials division which markets a broad portfolio of process chemicals across a wide range of industries contributed to the Group performance with outstanding results in the first quarter 2021. The division reached an operating gross profit of 472.5 million EUR (+7.1%) and reports a very strong operating EBITDA of 194.1 million EUR, 29.2% above prior-year period.

The Brenntag Specialties division builds on the company's position as the largest specialty chemicals distributor worldwide, focusing on six selected customer industries: Nutrition, Pharma, Personal Care / HI&I (Home, Industrial & Institutional), Material Science (Coatings & Constructions, Polymers, Rubber), Water Treatment and Lubricants. With an operating gross profit of 284.3 million EUR (+7.1%) and reported operating EBITDA of 119.8 million EUR (+9.2%), the division showed very positive results in the first quarter 2021.

Since go-live of its new operating model with the global divisions of Brenntag Essentials and Brenntag Specialties on January 1, 2021, the company has made good progress with the implementation of Project Brenntag. The comprehensive transformation program has the objective to expand Brenntag's position as global market leader and position the company for sustainable organic earnings growth. The first quarter consisted of the substantial work on the step-by-step implementation of the program's initiatives.

Against the background of the current environment and the results of the first quarter, Brenntag confirms its operating EBITDA guidance to be in the range of 1.08 to 1.18 bn EUR for the full year. The company expects both divisions to contribute to the growth of operating EBITDA.

Find all figures and details for the Q1 2021 results on Brenntag's website: www.brenntag.com/corporate/en/media/

Press contact:
Verena Blaschke
Brenntag SE
Global Communications
Telephone: +49 (201) 6496-1213
E-Mail: global.communications@brenntag.de

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SOURCE Brenntag SE

FAQ

What were Brenntag's sales in Q1 2021?

Brenntag achieved sales of 3,132.5 million EUR in Q1 2021.

How much did Brenntag's operating EBITDA grow in Q1 2021?

Brenntag's operating EBITDA increased by 20.7% to 300.3 million EUR in Q1 2021.

What is Brenntag's full-year operating EBITDA guidance for 2021?

Brenntag's full-year operating EBITDA guidance is between 1.08 to 1.18 billion EUR.

Which divisions contributed to Brenntag's Q1 2021 results?

Brenntag Essentials and Brenntag Specialties both contributed strong results in Q1 2021.

Why did Brenntag's earnings per share decrease in Q1 2021?

Earnings per share decreased due to a non-recurring, extraordinary increase in provisions related to a tax audit.