Brenntag (BNR) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales reached EUR 4.2 billion, down 2% year-over-year, with operating EBITA at EUR 297 million, a 10.4% decline, and EPS at EUR 1.03, compared to EUR 1.23 in Q2 2023.

• Free cash flow dropped to EUR 158 million in Q2 2024, a 63.5% decrease, mainly due to higher working capital investments.

• Intense competition, margin stabilization initiatives, and ongoing strategy execution characterized the quarter.

• H1 2024 results were impacted by a challenging market, with operating EBITA down 17.3% to EUR 556.8 million and sales down 6.6% on a constant currency basis.

• Several acquisitions and a share buyback were completed, and EUR 1 billion in new bonds were issued.

Financial highlights

• Q2 2024 sales: EUR 4.2 billion, down 2% year-over-year; operating gross profit: EUR 1.03 billion, up 0.6%; operating EBITA: EUR 297 million, down 10.4%.

• Q2 2024 net profit after tax: EUR 151 million; EPS: EUR 1.03 (vs. EUR 1.23 in Q2 2023).

• H1 2024 sales: EUR 8,178.9 million, down 6.9%; operating EBITA: EUR 556.8 million, down 17.3%; EPS: EUR 2.00 (vs. EUR 2.62 in H1 2023).

• Free cash flow: EUR 158 million in Q2 2024 (down from EUR 432 million in Q2 2023); EUR 332.8 million in H1 2024 (down from EUR 880.9 million in H1 2023).

• Net financial liabilities increased to EUR 2.86 billion at Q2 end.

Outlook and guidance

• FY 2024 operating EBITA guidance revised to EUR 1.1–1.2 billion, down from EUR 1.23–1.43 billion.

• Market conditions expected to remain highly competitive with continued pricing pressure and less supportive volume trends in H2 2024.

• Anticipates stable gross profit per unit and only slight sequential volume improvement in H2 2024.

• Capex for 2024 projected at EUR 350 million; tax rate expected at 29–31%.

• Sequential improvement in demand expected to continue into 2025, with better pricing environment anticipated.