Brenntag (BNR) Q4 2024 earnings summary

Executive summary

• Full-year 2024 sales reached €16.2 billion, down 3% year-over-year, amid challenging markets and intense competition.

• Operating EBITDA was €1.1 billion, a 13% decline year-over-year, meeting the lower end of guidance; EBITA declined 12.5% to €1,102 million (fx adj.).

• Free cash flow was €893 million, down from €1.7 billion in 2023, and a stable dividend of €2.10 per share is proposed for the 14th consecutive year.

• Earnings per share fell to €3.71 from €4.73, impacted by the sale of Raj Petro Specialities and other special items.

Financial highlights

• Operating gross profit was €4.03 billion, stable year-over-year, with margin management offsetting price pressure.

• Operating expenses (excluding special items) rose 4.7% to €2.6 billion, mainly due to acquisitions, inflation, and higher volumes.

• Special items below operating EBITDA totaled -€111 million, including Raj Petro divestment losses, strategic project costs, and legal expenses.

• Net financial liabilities increased to €2.8 billion, driven by lower cash from operations and acquisition outflows; leverage ratio at 1.9x.

• ROCE after special items declined to 10% from 18.9% in 2023.

Outlook and guidance

• 2025 operating EBITDA/EBITA is expected in the range of €1.1–1.3 billion, assuming stable exchange rates and contributions from closed acquisitions.

• Moderate volume improvements and a slightly better pricing environment are anticipated, but economic and political uncertainties remain high.

• Cost-out program targets €300 million annual savings by 2027, with a doubling of cost savings expected in 2025 versus 2024.

• Tax rate expected at 28–30%; CAPEX planned at €300 million for 2025.