- 2024 results impacted by challenging environment: Despite multiple macroeconomic and market headwinds, Brenntag achieved an operating gross profit* of EUR 4,025.4 million which is on par with the previous year (-0.2%**). With an operating EBITA*** of EUR 1,101.9 million (-12.5%), Brenntag met its guidance from August 2024 at the lower end.
- Focus on divisional performance improvement: In an environment of sequential volume improvement and continued high pressure on industrial chemical selling prices, both divisions continued their price and margin management successfully. Brenntag Specialties reported stable volumes in 2024 while operating gross profit was slightly below the previous year’s level (-1.2%). Brenntag Essentials reported an increase in volumes and achieved a stable operating gross profit (+0.2%).
- Cost savings target achieved: Through the execution of a comprehensive cost containment program, cost savings of more than EUR 50 million have been realized.
- Progress in strategy implementation: Brenntag continued to execute its “Strategy to Win” including the targeted disentanglement of its two divisions, focusing on the areas with the highest value creation and differentiation potential in the markets.
- Attractive dividend proposal: Brenntag will suggest a stable dividend of EUR 2.10 per share for 2024, based on its resilient cash generation, a strong balance sheet and its confidence in the future performance of the company.
- Guidance 2025: Brenntag expects the Group’s operating EBITA for the financial year 2025 to be between EUR 1,100 million and EUR 1,300 million.
Brenntag (ISIN DE000A1DAHH0), the global market leader in chemicals and ingredients distribution, today published its results for the financial year 2024 which were impacted by a persistently challenging business environment, characterized by strong competition and pressure on industrial chemical selling prices in various end markets. Brenntag consistently drove its business and met its operating EBITA guidance from August 2024 at the lower end. The company also continued to implement its strategy and achieved positive contributions from its comprehensive cost containment measures. However, due to the macroeconomic and market headwinds as well as volume and inflation-related cost increases, both divisions, Brenntag Specialties and Brenntag Essentials, posted a year-on-year decline in earnings.
Christian Kohlpaintner, Chief Executive Officer of Brenntag SE: “Multiple geopolitical challenges and uncertainties as well as a lack of consumer confidence impacted the economic development in 2024. The chemical industry we serve experienced an extended bottoming out of the industry cycle and strong pressure on industrial chemical selling prices. As anticipated, we saw sequential volume improvements and managed to keep our operating gross profit stable compared to the previous year. Our teams made significant efforts to strengthen our operational performance, successfully executing cost containment measures as well as price and margin management. However, due to the macroeconomic and market headwinds as well as volume and inflationary related cost increases, we cannot be fully satisfied with Brenntag’s financial results 2024. In parallel to navigating this difficult environment, we continued to lay the foundations for future success by driving forward our ‘Strategy to Win’. I would like to thank our employees for their tireless commitment and their exceptional work especially in challenging times like these.”
Financial performance
In 2024, Brenntag generated sales of 16,237.4 million EUR which is 3.2% below the previous year. The decrease was due to a decline in sales prices and could not be offset by the higher volumes, which on Group level sequentially increased throughout the year. Brenntag’s operating gross profit reached 4,025.4 million EUR and was on par with prior year (-0.2%) as higher volumes compensated the lower gross profit per unit margins. With an operating EBITA of 1,101.9 million EUR (-12.5%), Brenntag met its guidance from August 2024 at the lower end. The decline in earnings stemmed from both divisions and was due to higher volume-driven costs and inflationary impacts. Earnings per share amounted to 3.71 EUR (2023: 4.73 EUR). Brenntag achieved a strong free cash flow of 892.6 million EUR in 2024. It was below the exceptionally high free cash flow of 1.7 billion EUR in 2023, due to the decline in operating EBITA as well as movements in Brenntag’s working capital.
Positive contributions from cost containment program
Brenntag implemented a comprehensive cost containment program throughout 2024 to reduce operating costs and counteract the volume- and inflation-driven cost increases. The company achieved cost reduction of slightly more than 50 million EUR in 2024. In 2025, Brenntag aims to roughly double the savings of 2024, demonstrating its commitment to reaching the goal of a 300 million EUR annual cost-out effect by 2027 compared to the base year 2023.
Kristin Neumann, Chief Financial Officer of Brenntag SE: “2024 proved to be a challenging year for Brenntag. We addressed these challenges early and decisively. Our comprehensive cost containment program is in full execution and is having a positive effect on our underlying cost development across the organization. As part of our site network optimization, we successfully closed 33 sites last year, and we organically reduced around 230 headcounts. We have a clear plan to achieve our communicated 2027 cost-out target and will continue to focus on our cost development with strict discipline.”
Divisional performance impacted by challenging market environment
In once again highly competitive markets, both Brenntag Specialties and Brenntag Essentials achieved stable respectively growing volumes, successfully continued their strong price and margin management and executed various cost-out measures. Nevertheless, Brenntag’s both divisions posting a year-on-year decline in earnings.
Brenntag Specialties reported stable volumes in 2024. However, a weaker operating gross profit per unit resulted in a slightly lower absolute operating gross profit of 1,173.2 million EUR (-1.2%). The lower operating gross profit combined with inflation-driven cost increases led to a decline in operating EBITA by 11.9% to 446.9 million EUR. The decline stemmed from both Brenntag Specialties segments. Life Science showed a positive and encouraging trajectory within 2024 whereas the Material Science segment remained challenging throughout the reporting year. In the second half of 2024, however, Brenntag Specialties was able to continue the sequential improvement of its gross profit per unit with a stringent portfolio improvement as well as consistent price and margin management.
Brenntag Essentials reported an increase in volumes in all four regions both on an organic basis and including the new acquisitions. However, in 2024 the market saw the strongest normalization in industrial chemical selling prices in a long time. Brenntag Essentials was able to partly mitigate the impact on a gross profit per unit level, which also shows the resilience of its business model and its strong market position. This resulted into a stable operating gross profit on prior year level in the amount of 2,852.2 million EUR (+0.2%). Operating EBITA declined by 14.1% to 780.7 million EUR due to the lower gross profit per unit in combination with inflationary effects and volume-driven increases in transportation costs.
Progress in strategy execution across all pillars
Despite the market headwinds, Brenntag continued to implement its “Strategy to Win” across all four pillars, laying the foundation for accelerated growth in the future. The company continues to develop its organizational structure along a clear transformation plan, executing the targeted disentanglement of its two divisions in areas with the highest value creation and differentiation potential. The focus for Brenntag Specialties is on improving its performance through a combination of short term and long-term levers, including optimizing its business portfolio. Brenntag Essentials is executing its “triple” strategy, focusing especially on driving efficiencies in its Last Mile Service Operations.
Brenntag closed eight acquisitions with a total enterprise value of around 550 million EUR in 2024, thus successfully strengthening the industry segments in the Specialties division and driving the continued implementation of the “triple” strategy in Brenntag Essentials.
In 2024, Brenntag also advanced its ambitious sustainability agenda – not only by reducing its own carbon footprint, but also by promoting new sustainable solutions in its industry. This has been recognized by an improved EcoVadis platinum rating in 2024, as well as in the recent validation of its climate change mitigation targets by the Science Based Targets Initiative of the United Nations.
Furthermore, in 2024 Brenntag made progress in becoming a stronger data and technology-driven company through the various initiatives of its Digital.Data.Excellence program. Through efficiency gains and cost savings, the DiDEX initiatives will contribute to supporting business growth and achieving the planned annual cost-out target by 2027.
Attractive dividend proposal
The Board of Management and the Supervisory Board will recommend to the Annual General Meeting on May 22, 2025, a stable dividend of 2.10 EUR per share. Subject to its approval, Brenntag has maintained or increased its dividend payout now for the 14th time in a row, corresponding to an average annual dividend growth rate of around 11% since its IPO.
Christian Kohlpaintner, Chief Executive Officer of Brenntag SE: “We always strive to create shareholder value and to let our shareholders participate in the successful performance of Brenntag. We are proposing this stable dividend based on our resilient cash generation, our strong balance sheet and our confidence in the future performance of Brenntag.”
Outlook & Guidance 2025
Brenntag expects 2025 to be another challenging year, shaped by ongoing economic and political uncertainties and subdued global economic growth. The company foresees continued moderate improvements in volumes throughout the year and a slightly better sequential pricing environment.
Considering these conditions, Brenntag expects the Group’s operating EBITA for the financial year 2025 to be between 1,100 million EUR and 1,300 million EUR. This forecast takes into account the earnings contributions from acquisitions already completed.
Financial Results at a glance – FY2024
