Brenntag (BNR) Q2 2024 earnings summary

Executive summary

• Q2 2024 sales reached €4.2 billion, down 2% year-over-year, with operating EBITA at €297 million, a 10.4% decline, and free cash flow dropping 63.5% to €158 million.

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

• EPS decreased to €1.03 in Q2 and €2.00 in H1, compared to €1.23 and €2.62 in the prior year.

• Intense competition, margin stabilization initiatives, and ongoing cost containment measures are in place.

• Several acquisitions, a €250 million share buyback, and €1 billion in new bonds were completed.

Financial highlights

• Q2 sales: €4.2 billion (down 2%); H1 sales: €8,178.9 million (down 6.9%).

• Operating gross profit: €1.03 billion in Q2 (up 0.6%); €2,012.3 million in H1 (down 2.3%).

• Operating EBITA: €297 million in Q2 (down 10.4%); €556.8 million in H1 (down 17.3%).

• Free cash flow: €158 million in Q2 (down 63.5%); €332.8 million in H1 (down 62.2%).

• Net financial liabilities: €2.86 billion at quarter end, up from €2.19 billion at year-end 2023.

Outlook and guidance

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

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

• Stable gross profit per unit and only slight sequential volume improvement anticipated in H2 2024.

• 2025 expected to benefit from further chemical cycle recovery and improved pricing.

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