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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
14-05-2025
- Business
- Yahoo
Bayer AG (BAYRY) Q1 2025 Earnings Call Highlights: Navigating Challenges and Capitalizing on ...
Revenue: Flat year-over-year, within the -3% to +1% corridor guidance for 2025. Core EPS: EUR2.49, on track to reach EUR4.50 to EUR5.00 at constant currencies. Free Cash Flow: Minus EUR1.5 billion, EUR1 billion improvement from last year. Crop Science Sales: Declined 3%, with regulatory impacts affecting higher margin sales. Pharmaceuticals Sales: Grew 4%, with Nubeqa and Kerendia increasing 80% year-over-year. Consumer Health Sales: Increased 2.5%, with 2% volume growth. EBITDA Before Special Items: EUR4.1 billion, 7% below prior-year quarter. Net Financial Debt: Increased by EUR1.7 billion to EUR34.3 billion since year-end 2024. Crop Science EBITDA Margin: 33.7%, 10% lower due to regulatory impacts and corn phasing. Pharmaceuticals EBITDA Margin: 29.5%, increased by 12% due to higher sales and efficiency gains. Consumer Health EBITDA Margin: 22.8%, slightly below prior year but within guidance range. Warning! GuruFocus has detected 3 Warning Sign with BAYRY. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Bayer AG (BAYRY) reported a strong performance in its Pharmaceuticals division with a 4% growth, driven by the exceptional momentum of Nubeqa and Kerendia, which grew 80% year-over-year. The company achieved a 12% increase in EBITDA before special items in the Pharmaceuticals division, indicating effective cost management and efficiency gains. Consumer Health division saw a 2.5% growth, with a 2% increase in volume, positioning the division well to meet its annual guidance. Bayer AG (BAYRY) is on track to meet its full-year guidance for 2025, with core EPS expected to be between EUR4.50 to EUR5.00 at constant currencies. The company has made significant progress in its strategic priorities, including the launch of Beyonttra in the EU and preparations for the launch of elinzanetant in the second half of the year. Bayer AG (BAYRY) reported a 3% decline in sales for its Crop Science division, primarily due to regulatory impacts affecting higher margin sales. The company's free cash flow was negative at EUR1.5 billion, attributed to the seasonality of the Crop business, although it showed improvement from the previous year. Xarelto sales declined by 31% due to continued generic pressure in Europe and Japan, impacting the Pharmaceuticals division's top and bottom line. The Consumer Health division experienced soft conditions in key markets, with a slight decline in margins compared to the previous year. Bayer AG (BAYRY) faces ongoing litigation challenges, including an adverse decision by the Superior Court of Pennsylvania, which may impact financial provisions and require further legal actions. Q: Could you discuss the expected growth in Crop Science for Q2 and any impacts from forward purchasing on crop protection products? A: Rodrigo Santos, Head of Crop Science, explained that excluding regulatory impacts, the core business would have grown by 2.4%. The corn business is expected to grow by 2.5% in Q1 due to accounting adjustments. Crop protection reported 2% growth, which would be 5% excluding regulatory impacts. The company remains confident in its guidance for the year, driven by innovation and core business health. Q: Can you provide an update on the glyphosate litigation and potential outcomes if the Supreme Court does not accept the case? A: William Anderson, CEO, stated that Bayer expects to hear from the Supreme Court in June or October. The company is not relying solely on this plan and is working with Congress for potential legislative solutions. Bayer is also considering structural options and remains open to settlements, provided they offer a high degree of finality. Q: How confident are you in the safety and efficacy of Asendexian, and what is the expected market potential? A: Stefan Oelrich, Head of Pharmaceuticals, expressed confidence in Asendexian's safety and efficacy, noting positive results from the Pacific program. The Phase III study targets populations with significant effects observed in Phase II. The market potential is substantial, especially if prevalent cases are included. Q: Could you elaborate on the state legislation efforts related to glyphosate and their significance? A: William Anderson highlighted that state legislation is crucial for providing certainty to manufacturers and signaling to Congress the need for federal clarification. Missouri is a key state due to the volume of lawsuits filed there. Bayer is pursuing legislation in additional states to support its position. Q: What are Bayer's expectations for corn acreage in the U.S., and how does it impact profitability compared to soy? A: Rodrigo Santos stated that Bayer is optimistic about high corn acreage in the U.S., potentially reaching 94-95 million acres. Corn is more profitable than soy, and Bayer expects growth in corn globally. The company is also focused on margin expansion through cost control and efficiency improvements. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-02-2025
- Business
- Yahoo
Safran SA (SAFRF) (FY 2024) Earnings Call Highlights: Record Revenue and Strategic Growth ...
Revenue: EUR27.3 billion, up 18% year-over-year. Recurring Operating Profit: EUR4.1 billion, up 30%. Operating Margin: Expanded by 150 basis points to 15.1%. Free Cash Flow: EUR3.2 billion. Dividend Proposal: EUR2.90 per share, up 32% from last year. Net Income: EUR3.1 billion, representing EUR7.37 per share, up 52%. Propulsion Revenue: EUR13.7 billion, up 15%. Equipment & Defense Sales: EUR10.2 billion, up 17.7%. Aircraft Interiors Sales: EUR3 billion, up 25.2%. Net Cash Position: EUR1.7 billion at the end of 2024. Share Repurchase: 6.5 million shares repurchased for EUR1.3 billion. Warning! GuruFocus has detected 2 Warning Sign with BOM:509631. Release Date: February 14, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Safran SA (SAFRF) achieved record levels in revenues, profits, and cash flows for 2024, with a significant 18% revenue growth to EUR27.3 billion. The company improved its operating margin by 150 basis points, reaching 15.1%, demonstrating strong operational excellence. Safran SA (SAFRF) completed the acquisition of CRT, a US MRO leader, and divested its 50% share of Roxel, indicating strategic portfolio management. The LEAP-1A engine achieved FAA and EASA certification for a new high-pressure turbine durability kit, enhancing its durability and profitability. Safran SA (SAFRF) is on track with its sustainability goals, dedicating 88% of its EUR700 million research and technology budget to environmental efficiency and increasing its EcoVadis rating to 65 out of 100. Original Equipment (OE) deliveries were down 10% due to supply chain constraints, impacting lead volumes. Despite strong aftermarket growth, the company faces ongoing supply chain issues that are expected to persist into 2025. The Aircraft Interiors division, although back to profitability, is still 5% below the record levels of 2019. The company is exposed to potential tariff impacts due to its global supply chain, particularly concerning parts crossing borders between the US, Mexico, and Canada. Safran SA (SAFRF) faces challenges in managing inventory and customer advance payments amidst a volatile market environment. Q: Can you provide more details on the revised spares guidance and what has changed from the previous outlook? A: Olivier Andries, CEO: We have slightly revised our guidance for spare parts, increasing the volume of shop visits and engine inductions. However, our assumptions regarding scope and pricing remain unchanged. Q: Given the strong cash flow performance in 2024, how does this affect your long-term free cash flow guidance? A: Pascal Bantegnie, CFO: We exceeded our expectations for free cash flow in 2024 and have raised our 2025 guidance. While our cumulative cash guidance of EUR15 billion to EUR17 billion may seem conservative, we prefer to proceed cautiously due to various moving parts, such as LEAP engine deliveries and supply chain constraints. Q: Can you discuss the pricing dynamics for OE engines and the breakeven point for the LEAP engine? A: Pascal Bantegnie, CFO: We see slight improvements in OE engine pricing over time, but nothing significant for EBIT performance. The engines delivered in 2025 are based on contracts signed years ago, and the spare engine ratio is in the low teens. Q: What are your expectations for high-thrust engine OE and aftermarket revenue growth in 2025? A: Olivier Andries, CEO: The dynamics for high-thrust engines are strong, contributing to our raised guidance for spare parts in 2025. We expect robust growth in this segment. Q: How are supply chain constraints affecting LEAP or CFM56 spare parts, and what is the expected cadence of LEAP deliveries in 2025? A: Olivier Andries, CEO: Supply chain issues are improving but still present. We expect to deliver 15% to 20% more LEAP engines in 2025 compared to 2024, but we won't provide quarterly guidance for the ramp-up. Q: Can you explain the discrepancy between Safran's civil aftermarket growth and GE's performance in commercial services? A: Olivier Andries, CEO: Our spare parts indicator mainly covers CFM56, while GE's includes both narrow-body and wide-body engines. Differences in accounting rules and exposure to services also contribute to the discrepancy. Q: What is the timeline for profitability in the seats segment, and how does this relate to the revenue and profit guidance for 2025? A: Olivier Andries, CEO: We aim to improve Aircraft Interiors' profitability to double digits by 2028, starting from breakeven in 2024. For 2025, we expect increased EBIT margins and improved cash performance. Q: How will the recognition of LEAP aftermarket profit in 2025 impact propulsion margins? A: Pascal Bantegnie, CFO: The introduction of the new HPT blade allows us to start recognizing profits on LEAP-1A RPFH contracts, but this will not materially impact the overall EBIT guidance or propulsion margins. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
