Brenntag Increases Profit and Intends to Raise the Dividend

Brenntag AG, a global chemical and ingredients distribution company announced on Wednesday that its profit grew by 1.6% for full-year 2019.

Profit before tax grew 1.6% from last year to EUR633.4 million. Operating EBITDA reached EUR1 billion, a year-on-year increase of 11.3%.

The earnings were benefited by the initial application of IFRS 16, despite difficult market environment in Europe, Middle East & Africa and North America.

Sales increased 2.2% to EUR12.82 billion from EUR12.55 billion last year. On a constant currency basis, sales edged down 0.3%.

The company said that its shareholder attributable income for fiscal 2019 grew from last year’s EUR460.9 million to EUR466.7 million.

Earnings per share were EUR3.02, up from EUR2.98 a year ago.

In addition, at the General Shareholders ‘ Meeting on June 10, the Board of Directors and the Supervisory Board will recommend a dividend of EUR1.25 per share, up 4.2%.

Brenntag is currently projecting a positive performance at operating EBITDA level with a view to fiscal 2020.

Dr Christian Kohlpaintner, who took office as Chief Executive Officer in January, said, “Brenntag is a strong brand with a good reputation in its markets. Our company offers great potential for organic profitable growth. My Board of Management colleagues and I will therefore make every effort to unlock more of this potential. Going forward, we will not only maintain our highly market-centric approach, but also focus to a greater extent on optimizing our processes, procedures and structures, thereby creating the conditions crucial to long-term organic growth.”