Brenntag Ag ( (BNTGY) ) has released its Q1 earnings. Here is a breakdown of the information Brenntag Ag presented to its investors.
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Brenntag AG is a global leader in chemical and ingredients distribution, providing a wide range of industrial and specialty chemicals and services through its divisions, Brenntag Essentials and Brenntag Specialties. The company operates a vast network across more than 70 countries, connecting suppliers and customers in the chemical industry.
In the first quarter of 2025, Brenntag AG reported a mixed financial performance amidst challenging market conditions. The company experienced a slight increase in sales and operating gross profit, while earnings per share and free cash flow saw a decline compared to the previous year.
Key financial metrics revealed a 1.7% increase in sales to EUR 4,071.9 million and a 3.6% rise in operating gross profit to EUR 1,019.5 million. Operating EBITA showed a marginal increase of 0.3% on a constant currency basis. However, profit after tax decreased to EUR 135.7 million, and free cash flow dropped by 6.8% to EUR 163.3 million, primarily due to higher working capital requirements.
Despite the subdued economic environment and geopolitical uncertainties, Brenntag maintains its full-year 2025 operating EBITA guidance in the range of EUR 1.1 billion to EUR 1.3 billion, albeit expecting results at the lower end of this range. The company continues to focus on strategic initiatives to optimize its product portfolio and manage costs effectively.
Looking ahead, Brenntag anticipates ongoing challenges due to global economic uncertainties and geopolitical tensions. However, the company remains committed to leveraging its market leadership and strategic initiatives to navigate these challenges and drive long-term growth.