After some countries were in strict shutdown for several months due to the COVID-19 pandemic, the economy in Asia Pacific was recovering in the third quarter of 2020. At 72.5 million EUR, operating gross profit in the region was slightly above the previous year’s level of 68.1 million EUR (12.0%). Third-quarter Operating EBITDA rose to 33.0 million EUR, a significantly year-on-year increase (35.9%).
Outlook for 2020
In early April, the company suspended the forecast for the financial year 2020 due to the considerable uncertainty over the future effects of the COVID-19 pandemic. Mid of September, Brenntag reinstated the outlook for the full year 2020. The Group expects operating EBITDA for the financial year 2020 to be between EUR 1,000 million and EUR 1,040 million (financial year 2019: EUR 1,001.5 million). The new forecast assumes that there will be no further significant government measures to contain the pandemic and related negative effects on the economy. Furthermore, this forecast does not envisage any special items or significant changes in current exchange rates in the further course of the year. It includes the contributions to earnings from acquisitions. As the COVID-19 pandemic will most likely impact the economy for the rest of this year and also in 2021, the presumed business environment continuous to be volatile.
*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. **Unless indicated otherwise, growth rates are on a constant currency basis. ***Operating gross profit is defined as sales less cost of goods sold.