After being hit by the pandemic early in the year, the Asia Pacific region recovered sequentially, with particularly China seeing a quick and strong recovery. Almost all countries and many industries contributed to the very good results. Brenntag generated operating gross profit of 282.5 million EUR, an increase of 8.9% compared to prior-year results. Operating EBITDA came to 123.8 million EUR, a substantial increase of 25.9%.
Successful go-live of transformation program “Project Brenntag”
The company’s comprehensive transformation program Project Brenntag went ahead as planned with the successful implementation of the new operating model and the two global divisions Brenntag Essentials and Brenntag Specialties beginning of 2021. The program received very positive feedback from the different stakeholders such as suppliers, customers, and investors. The various Project Brenntag driven efficiency measures are expected to deliver an additional operating EBITDA of 220 million EUR in total in the financial year 2023, ramping up year by year. In 2020, Project Brenntag has already contributed to the positive results with an operating EBITDA impact of approximately 15 million EUR. Furthermore, 30 sites globally of the 100 earmarked for closing have been effectively shut down. Headcount has been reduced by almost 200 employees in a socially responsible manner.
Outlook for financial year 2021
Christian Kohlpaintner, Chief Executive Officer of Brenntag SE, said: “We still have to cope with the impacts of the pandemic around the globe and we expect a continued high level of uncertainty regarding the macro-economic development, in particular for the first half of 2021. Against this background, for the full year 2021, Brenntag expects an operating EBITDA between 1,080 and 1,180 million EUR.”
This range between 1,080 and 1,180 million EUR includes the potential efficiency improvement anticipated in the course of implementing the measures under Project Brenntag as well as the contributions from our acquisitions already closed and assumes that exchange rates will remain stable.
*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.