Despite the effects of the COVID-19 pandemic, Brenntag Asia Pacific reported a solid first quarter of 2020. Operating gross profit reached 67.0 million EUR. This increase of 9.5% is due in particular to the acquisition of Tee Hai Chem Pte Ltd. closed in 2019. Operating EBITDA came to 26.3 million EUR, a clear year-on-year increase of 20.1%.
Brenntag has made good progress on the holistic analysis of the company initiated at the beginning of 2020. In this context, “Project Brenntag” was set up with the aim of detailing out conclusions, defining distinctive initiatives and creating an overarching plan for their implementation based on the findings of the analysis. “Brenntag’s transformation will be a comprehensive journey. We are now creating the strong basis to drive sustainable organic earnings growth,” says Christian Kohlpaintner, Chief Executive Officer of Brenntag Group.
Outlook for 2020
In early April, the company suspended the forecast for financial year 2020 due to the considerable uncertainty over the future effects of the COVID-19 pandemic. The forecast will be updated once the effects on Brenntag’s further business performance in 2020 can be reliably determined. The Board of Management and the Supervisory Board confirm that the dividend of 1.25 euros per share proposed for financial year 2019 will be distributed in full, subject to approval at the virtual General Shareholders’ Meeting on June 10, 2020.
*Operating gross profit is defined as sales less cost of goods sold.
**Unless indicated otherwise, growth rates are on a constant currency basis.
***Brenntag presents operating EBITDA before holding charges and special items. Holding charges are certain costs charged between holding companies and operating companies. At Group level, these effects net to zero. Brenntag is also adjusting operating EBITDA for income and expenses arising from special items so as to improve comparability in presenting the performance of its business operations over multiple reporting periods and explain it more appropriately. Special items are income and expenses outside ordinary activities that have a special and material effect on the results of operations, such as restructurings.