Latest news with #ChristianKohlpaintner
Reuters
4 days ago
- Business
- Reuters
Brenntag confirms profit guidance, cut in July, as market challenges persist
Aug 13 (Reuters) - German chemicals distributor Brenntag ( opens new tab on Wednesday confirmed the annual core profit guidance it had lowered in July, reflecting growing market uncertainty exacerbated by U.S. tariffs and weak dollar. "Economic conditions for the chemical industry and our customer markets remain challenging across the globe," CEO Christian Kohlpaintner said in a statement. "Over the past months, we have seen continued uncertainty, muted customer sentiment, a slowdown in demand and in addition unfavorable EUR/USD exchange results," he said. The group expects operating earnings before interest, taxes and amortisation (EBITA) of 950 million to 1.05 billion euros ($1.11 billion to $1.23 billion) in 2025, down from 1.1 billion euros a year earlier. Brenntag also confirmed the 13.9% drop in its second-quarter operating EBITA to 246.4 million euros, as reported in July. ($1 = 0.8559 euros)
Yahoo
15-05-2025
- Business
- Yahoo
Brenntag SE (BNTGF) Q1 2025 Earnings Call Highlights: Navigating Economic Challenges with ...
Sales: EUR4.1 billion, stable compared to the prior year period. Operating Gross Profit: EUR1.0 billion, increased by 2% year-over-year. Operating EBITDA: EUR355 million, up 2.5% year-over-year. Operating EBITA: EUR264 million, stable compared to the prior year. Free Cash Flow: EUR163 million, compared to EUR175 million last year. Earnings Per Share (EPS): EUR0.93, down from EUR0.97 last year. Gross Profit Margin (Brenntag Specialties): 23.2%, increased by 90 basis points. Operating EBITA (Brenntag Specialties): EUR111 million, declined by 1%. Operating Gross Profit (Brenntag Essentials): EUR725 million, increased by 3%. Operating EBITA (Brenntag Essentials): EUR179 million, 3.7% below the prior year. Leverage Ratio: Net debt to operating EBITDA at 1.9 times. Warning! GuruFocus has detected 1 Warning Sign with BSP:VTRU3. Release Date: May 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Brenntag SE (BNTGF) reported stable sales of EUR4.1 billion for Q1 2025, consistent with the prior year period. Operating gross profit increased by 2% to EUR1.0 billion, indicating effective margin management despite pricing pressures. Operating EBITDA rose by 2.5% year-over-year to EUR355 million, showcasing positive operating leverage. The company generated a free cash flow of EUR163 million, demonstrating strong cash management. Cost containment measures are on track, contributing significantly to cost development and supporting targeted savings for 2025. The business environment remains challenging with economic uncertainty and geopolitical volatility impacting performance. Sequential performance did not meet initial expectations, with Q1 results affected by dampened business sentiment. Earnings per share decreased to EUR0.93 from EUR0.97 in the previous year, reflecting pressure on profitability. The US economy contracted by 0.3% in Q1 2025, posing a risk to future demand and economic stability. The unresolved global tariff discussions and unfavorable euro-US dollar FX rates are expected to impact earnings, with guidance now at the lower range of EUR1.1 billion to EUR1.3 billion. Q: What are the risks to Brenntag's updated EBITA guidance, and how does the euro-US dollar FX rate factor into this? A: Christian Kohlpaintner, CEO, stated that risks include worsening geopolitical situations and economic environments, which are beyond their control. The euro-US dollar FX rate is a significant factor, with the guidance assuming a rate of 1.05, but current rates are at 1.12, impacting earnings. The company plans to accelerate its cost containment program to mitigate these risks. Q: Does the trading in April and early May give confidence that Q2 EBITA can be better than Q1? A: Christian Kohlpaintner, CEO, noted that typically Q2 is better than Q1 due to seasonality. Despite a mid-March slowdown, demand has not fallen significantly in April, providing some confidence for sequential improvement from Q1 to Q2. Q: Is the sequential increase in gross profit per tonne due to smaller, more frequent orders, or other pricing strategies? A: Christian Kohlpaintner, CEO, explained that for Brenntag Specialties, the increase is due to pricing and margin management, not mix effects. For Brenntag Essentials, there is pressure on industrial chemical prices, with some mix effects impacting gross profit per unit. Q: Can you clarify the guidance regarding the FX rate and its impact on the lower range of the EBITA guidance? A: Thomas Reisten, CFO, clarified that the guidance range of EUR1.1 billion to EUR1.3 billion was based on an FX rate of 1.05. However, the current rate of 1.12 has been factored into the expectation of earnings being at the lower range of the guidance. Q: What is the extent of the talc liabilities, and are there other similar risks? A: Thomas Reisten, CFO, mentioned that a provision for talc liabilities is in the low triple-digit million range. The company has accounted for all related risks on their balance sheet. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Reuters
14-05-2025
- Business
- Reuters
Brenntag flags tariff uncertainties, posts quarterly core profit miss
May 14 (Reuters) - German chemicals distributor Brenntag ( opens new tab flagged U.S. tariff uncertainties but said it remained "fundamentally positive" for its North America business, after it posted quarterly core profit below expectations on Wednesday. "Currently, caution prevails among our customers; no one will really expose themselves by deliberately building up stocks now, because it is actually unclear how the situation will be resolved," CEO Christian Kohlpaintner said on a conference call. U.S. President Donald Trump's sweeping tariffs, uncertainty over his trade policies and China's retaliation had sent global markets into a tailspin and stoked fears of a global recession. However, the United States and China agreed to temporarily slash reciprocal tariffs earlier this week, lifting investor sentiment while businesses awaited more clarity. Kohlpainter said 90-day tariff moratoriums, as good as they may seem at first glance, do not really help to create clarity and ultimate security. Last week, the European Commission proposed countermeasures on up to 95 billion euros of U.S. imports if negotiations with Washington fail to remove the series of tariffs applied by Trump. "I remain fundamentally positive about the American market, as long as these tariff discussions hopefully lead to a sensible solution," Kohlpaintner said. Brenntag's shares fell 4.1% as of 0935 GMT, sitting at the bottom of Germany's blue-chip index (.GDAXI), opens new tab. They are up about 3.2% year-to-date. Earlier in the day, the company reported operating earnings before interest, taxes and amortisation (EBITA) of 264.3 million euros ($295.75 million) for the first quarter, up from 259.7 million a year earlier. Analysts had forecast 275.9 million euros profit, according to a poll, opens new tab by Vara Research. There was a noticeable decline in North American business in March that impacted the company's performance, Kohlpaintner said. Brenntag now expects annual core profit to come in at the lower end of its forecast range of 1.1 billion euros to 1.3 billion euros, while analysts expect 1.17 billion euros, a poll, opens new tab by Vara Research showed. ($1 = 0.8937 euros)
Yahoo
13-03-2025
- Business
- Yahoo
Brenntag SE (BNTGF) (FY 2024) Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: EUR16.2 billion, a 3% decline from the previous year. Operating Gross Profit: EUR4.03 billion, stable year-over-year. Operating EBITA: EUR1.1 billion, a 13% decrease from the prior year. Free Cash Flow: EUR893 million, down from EUR1.7 billion in 2023. Earnings Per Share (EPS): EUR3.71, compared to EUR4.73 last year. Dividend Proposal: EUR2.10 per share, maintaining or increasing for the 14th consecutive year. Net Financial Liabilities: EUR2.8 billion. Leverage Ratio: Net debt to operating EBITDA at 1.9x. ROCE: 14%, down from 17.7% in 2023. Store Closures: 33 locations closed in 2024. Acquisitions: Eight acquisitions with an enterprise value of around EUR550 million. Warning! GuruFocus has detected 2 Warning Signs with FRA:ER9. Release Date: March 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Brenntag SE (BNTGF) maintained a stable operating gross profit of EUR4.03 billion despite a challenging market environment. The company generated a strong free cash flow of EUR893 million, demonstrating effective cash management. Brenntag SE (BNTGF) proposed a stable dividend of EUR2.10, marking the 14th consecutive year of maintaining or increasing dividend payouts. The company successfully executed eight acquisitions in 2024, enhancing its market position and growth potential. Brenntag SE (BNTGF) achieved significant sustainability milestones, including winning the ICIS Best Digital Innovation Award 2024 and receiving a Platinum rating in the EcoVadis Sustainability Assessment. Sales for the full year 2024 were EUR16.2 billion, a 3% decline compared to the previous year. Operating EBITA decreased by 13% year over year, reaching EUR1.1 billion, which was at the low end of the guidance. Earnings per share fell to EUR3.71 from EUR4.73 in the previous year, impacted by the sale of Raj Petro Specialties and other special items. The company faced intense competition and pressure on industrial chemical selling prices, affecting gross profit per unit. Operating expenses increased by 4.7% compared to the prior year, driven by inflationary effects and higher volume-related costs. Q: How should we think about the price and volume mix through 2025, and what are your thoughts on the phasing throughout the year? A: Christian Kohlpaintner, CEO: We expect a slight sequential improvement in volumes and pricing throughout 2025, similar to the trends seen in 2024. This improvement is expected to be consistent quarter-by-quarter rather than being concentrated in the second half of the year. Q: Can you discuss the underlying assumptions for Essentials versus Specialties growth within your EBITA guidance for the full year? A: Christian Kohlpaintner, CEO: We expect progression in both divisions in 2025. Life Sciences within Specialties is showing positive development, while Essentials faces undefined variables due to political and geopolitical uncertainties. The lower end of guidance could be impacted by continued pricing pressure and weaker volume growth in Essentials. Q: Why did higher transport costs impact your earnings if they are typically passed through to customers? A: Kristin Neumann, CFO: Higher transport costs were volume-driven and came on top of increased volumes. The pressure on gross profit per unit numbers, combined with higher operating expenses, led to a decline in overall results. Q: What are your expectations for Q1 2025 compared to Q4 2024 in terms of EBITA? A: Christian Kohlpaintner, CEO: We expect a similar quarterly pattern as seen in previous years, with Q1 typically being slightly higher than Q4. There are no major changes anticipated in the absence of geopolitical shocks. Q: Can you provide more details on the cost base and moving parts for 2025, especially regarding advisory and audit expenses? A: Kristin Neumann, CFO: Advisory costs include DiDEX-related expenses and disentanglement project costs, which are expected to decrease next year. DiDEX costs will be slightly lower, while running costs remain stable. The cost-out program is expected to yield EUR100 million in savings for 2025. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
