Latest news with #EUR175
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
Yahoo
26-04-2025
- Business
- Yahoo
Stora Enso Oyj (SEOAY) Q1 2025 Earnings Call Highlights: Strong Sales Growth Amid Operational ...
Sales Growth: Increased by 9% to EUR2.4 billion. Adjusted EBIT: EUR175 million, up 18% year-over-year with a 7.4% margin. Operating Working Capital: Decreased by 3 percentage points to 7%. Net Debt: Increased to EUR3.9 billion, with a net debt to EBITDA ratio of 3.2 times. Capital Expenditure: Approximately EUR240 million, expected to decrease after Q2. Cash Flow from Operations: EUR192 million, negatively impacted by a EUR100 million increase in working capital. Packaging Materials EBIT: Increased by EUR10 million to EUR62 million. Biomaterials EBIT: Decreased to EUR36 million due to lower sales prices and higher costs. Forest EBIT: Record high at EUR82 million, with assets fair value at EUR9.3 billion. Warning! GuruFocus has detected 8 Warning Signs with SEOAY. Release Date: April 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sales grew by 9% in the first quarter, reaching EUR 2.4 billion. Achieved a robust adjusted EBIT of EUR 175 million, representing an 18% increase year-over-year. Successful production start of the new consumer board line at the Oulu Mill. Regulatory approval to proceed with the acquisition of Finnish sawmills, Junnikkala, enhancing operational synergies. Plans to implement a new leaner and flatter organizational structure to enhance efficiency and performance culture. Adjusted EBIT for the full year 2025 is expected to be adversely impacted by approximately EUR 100 million due to the ramp-up of the new packaging board line. Higher fiber costs negatively impacted results, with a total negative impact of EUR 131 million in the quarter. Cash flow after investing activities was negative at EUR 47 million, driven by the Oulu project. Wood costs remain at record high levels, impacting profitability. The Packaging Solutions division continues to face challenges due to market overcapacity and oversupply. Q: Can you explain the changes in the operational structure and what they imply for Stora Enso? A: Hans Sohlstrom, President and CEO, explained that the company is removing one management layer and creating a flatter organization with seven P&L responsible business areas. This change involves integrating Nordic sawmills with the closest pulp and board integrates to enhance efficiencies. The new structure will have 21 P&L responsible business units, decentralizing P&L responsibility closer to operations and sales. Q: Regarding the Oulu mill ramp-up, what are the expected sales and pricing assumptions for 2025? A: Hans Sohlstrom stated that while specific volume targets for 2025 are not disclosed, the EUR800 million sales target is based on average long-term prices for folded boxboard and coated unbleached kraft. The ramp-up is progressing well, with prime quality customer trials underway. Q: How are current US tariffs impacting Stora Enso's operations, and what are the opportunities? A: Hans Sohlstrom noted that US tariffs have a limited impact as sales to the US account for less than 3% of total sales. The company is renegotiating contracts and pricing in the US and sees opportunities in markets implementing countermeasures to US tariffs. Stora Enso remains committed to the US market while exploring new opportunities globally. Q: What is the outlook for wood costs and other input costs for the remainder of the year? A: Hans Sohlstrom mentioned that wood costs are at record high levels but are expected to stabilize. The mills will be dedicated to specific business areas, with some exceptions like the Oulu mill, which will report into the carton board business area despite producing some containerboard. Q: Can you provide an update on the forest sales process and its timeline? A: Hans Sohlstrom confirmed that the forest sales process is proceeding as planned, with expectations to finalize in the first half of 2025. Despite market volatility, the stable forest asset remains attractive, and its value has increased since the deal was announced. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
