Preliminary results for the financial year 2011
- Operating EBITDA grew by 12.2% year-on-year (based on constant exchange rates) to EUR 660.9 million
- At constant currency exchange rates, sales and gross profit grew by 15.4% and 10% respectively
- Profit before tax improved to EUR 419.5 million (2010: EUR 231.8 million)
Profit after tax exceeded previous year by more than 90% and reached EUR 279.3 million (2010: EUR 146.6 million)
- EPS increased by 84% to EUR 5.39 per share
- Strong free cash flow of EUR 511.8 million (2010: EUR 376.1 million) allows for further internal and external growth and dividend payment
- The number of employees increased by 818 to 12,950 at the end of 2011 (full-time equivalents)
- Outlook 2012: growth expected for all relevant earnings parameters
Based on preliminary, unaudited numbers, Brenntag (WKN A1DAHH), the world market leader in chemical distribution, remains on its growth path and shows record results for the financial year 2011. Drivers were the continuing organic growth of the operating business, increased efficiencies, an improved financing mix as well as the earnings contribution of acquisitions.
Sales increased by 15.4% based on constant exchange rates (13.5% as reported) from EUR 7,649.1 million in 2010 to EUR 8,679.3 million in 2011. Main reasons were higher selling prices and stronger volumes, partly due to acquisitions. More importantly, Brenntag managed to increase gross profit by 10.0% based on constant exchange rates (8.0% as reported) to EUR 1,768.0 million (2010: EUR 1,636.4 million). Increased efficiencies allowed for an even stronger growth in operating EBITDA, which grew by 12.2% based on constant exchange rates (9.7% as reported) to EUR 660.9 million (2010: EUR 602.6 million). Brenntag thereby slightly exceeded the middle of its guidance range of EUR 650 – 670 million for operating EBITDA in 2011 and marked another record year.
Steven Holland, CEO: “Our final quarter and year end results 2011 reflect the underlying resilience of Brenntag supported by a highly diversified business model which continued to capture growth from the regions around the world whilst maintaining a robust performance in those areas with more serious macroeconomic challenges. Our principle of maintaining strong organic growth aligned with a highly focused acquisition strategy further consolidated our position as global market leader and supported us in achieving a record result in 2011.”
Profit before tax in 2011 grew significantly from EUR 231.8 million in 2010 to EUR 419.5 million in 2011 (+81.0%). This increase is based on the strong operational development and was supported by a significant decline in customer base amortization. Furthermore the improved capital structure and reduction in debt after the IPO in March 2010 as well as reduced financial costs after the successful refinancing in July 2011 helped to improve the profit before tax. The full-year effect of the refinancing will support the financial result for 2012 and beyond.
Profit after tax was at EUR 279.3 million in 2011 (2010: EUR 146.6 million). Thereof EUR 277.4 million are attributable to Brenntag shareholders which allows for a dividend payment.
|Gross profit||EUR m||1,768.0||1,636.4||8.0%||10.0%|
|Operating EBITDA||EUR m||660.9||602.6||9.7%||12.2%|
|Operating EBITDA /|
|Profit before tax||EUR m||419.5||231.8||81.0%|
|Profit after tax||EUR m||279.3||146.6||90.5%|
|Attributable to Brenntag |
|Earnings per share||EUR||5.39||2.93.||84.0%|
Main contributor to Brenntag’s free cash flow was the strong increase in EBITDA. Investments in non-current assets (Capex) remained on a usual level of EUR 86.0 million and reflect the limited investment need inherent in the business model as well as the high flexibility. Due to an active working capital management the rise in working capital was limited to EUR 61.0 million despite an increased business activity. In total, these effects yielded in a free cash flow of EUR 511.8 million.
|Free cash flow||2011 **||2010|
|Investments in non-current assets (Capex)||EUR m||-86.0||-85.1|
|Change in working capital||EUR m||-61.0||-136.4|
|Free cash flow||EUR m||511.8||376.1|
|** preliminary, unaudited|
With the expectation of a slower but nevertheless growing world economy and the continuation of the positive trends in the chemical distribution industry, excluding exchange rate effects Brenntag expects a continued positive earnings development in 2012. The company plans to grow all relevant earnings parameters. Efficiency measures continue to be taken where necessary. Financial result will improve further due to the full effect of the refinancing made in 2011. Brenntag will continue its strategy to expand its value added services portfolio, increase market shares especially in growing markets, further improve its position in established markets as well as its focus industries and promote the consolidation in the fragmented chemical distribution industry.
Brenntag will publish its Annual Report for 2011 on March 21, 2012.
Brenntag is the global market leader in full-line chemical distribution. Linking chemical manufacturers and chemical users, Brenntag provides business-to-business distribution solutions for industrial and specialty chemicals globally. With over 10,000 products and a world-class supplier base, Brenntag offers one-stop-shop solutions to more than 160,000 customers. The value-added services include just-in-time delivery, product mixing, formulation, repackaging, inventory management, drum return handling as well as extensive technical support. Headquartered in Mülheim an der Ruhr, Germany, the company operates a global network with more than 400 locations in 68 countries. In 2011 the company realized global sales of EUR 8.7 billion (USD 12.1 billion) with nearly 13,000 employees.
All figures for 2011 are preliminary, have not been audited and have not been reviewed by the Supervisory Board. This press release may contain forward-looking statements based on current assumptions and forecasts made by Brenntag AG and other information currently available to the company. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Brenntag AG does not intend, and does not assume any liability whatsoever, to update these forward-looking statements or to conform them to future events or developments.