[ID] => 9464
[post_author] => 288
[post_date] => 2018-04-12 18:33:24
[post_date_gmt] => 2018-04-12 17:33:24
[post_content] => Brenntag has closed its 2017 books with a post-tax profit of €362m, up slightly on the prior-year figure of €361m, from sales worth more than €11.7bn, themselves up 11.9 per cent from €10.5bn. Operating EBITDA rose 3.2 per cent, from €810m to €836m, while operating gross profit, which Brenntag describes as "an especially important metric", increased 5.2 per cent, coming in at €2.6bn as opposed to €2.4bn in 2016.
"We are satisfied with the overall group's performance in financial year 2017, which saw a broad-based contribution from business operations in our four regions," says CEO Steven Holland. "We were pleased to see the continued recovery and growth of our North American region after a challenging period and further growth in Asia Pacific, which provides long-term potential as we continue to develop our network density. The group continued to execute its acquisition strategy in 2017 with a number of important developments to support the growth in food and life sciences and geographical expansion in Asia Pacific. We anticipate that the actions and initiatives executed in 2017 will further support the group in 2018 and expect an overall positive business environment."
In Europe, the Middle East and Africa (EMEA), the company last year notched up sales worth €5bn, an increase of 9.4 per cent from €4.6bn, concurrent with a 2.8 per cent rise in operating gross profit, which came in just shy of €1.1bn. Operating EBITDA, meanwhile, remained largely stable at €365.6m. "Following a challenging first half of the year, we saw a positive performance in the region in the second half of 2017," Brenntag says. "Going forward, we expect further impetus from the programme that we have initiated to increase efficiency."
Over in North America, the company "posted a very positive performance". In addition to "very encouraging organic growth in almost all customer segments", it also benefitted from recent acquisitions that also made a positive contribution to earnings. As such, regional sales rose 14.1 per cent, from €3.8bn to €4.4bn, while operating gross profit increased 7.7 per cent to €1.1bn and operating EBITDA 7.8 per cent to €385m.
There was also good news in Latin America, where, despite "a still volatile and difficult macroeconomic environment", Brenntag saw its sales rise 4.9 per cent, from €780.9m to €819.2m. However, while operating gross profit increased 0.9 per cent, going from €170.9m to €172.5m, operating EBITDA dropped 7.6 per cent, slipping from €45.9m to €42.4m. "Following a weak first half of 2017, our Latin American companies posted a clear improvement in earnings in the second half of the year," it says.
Over in Asia Pacific, Brenntag again "delivered excellent results" and high growth rates. "In particular, we saw a very encouraging performance and positive contributions to earnings from the acquisitions by which we have systematically expanded our presence in the Asia Pacific region," the company states. In addition to recording a 15.8 per cent jump in sales, which rose from €1bn to €1.2bn, Brenntag also clocked up a 9 per cent increase in operating EBITDA, which went from €182.3m to €198.7m, and a 10.5 per cent increase in operating EBITDA, which hit €73.7m from €66.7m.
In terms of the year ahead, Brenntag says it "expects to see growth" in its key performance indicators. "During the last financial year," Holland states, "we saw the group strengthen its overall performance with a number of growth and efficiency programmes starting to deliver in the second half and the overall business environment continues to improve across all regions."
[post_title] => Brenntag: Leaner and fitter
[post_status] => publish
[comment_status] => open
[ping_status] => open
[post_name] => brenntag-leaner-and-fitter
[post_modified] => 2018-04-12 18:34:46
[post_modified_gmt] => 2018-04-12 17:34:46
[post_parent] => 0
[guid] => https://www.hcblive.com/?p=9464
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