Brenntag beats quarterly earnings estimates, helped by pricing measures
Quarterly Performance and Market Context
By Ozan Ergenay and Marta Frackowiak
Strong Results Amid Challenging Conditions
May 13 (Reuters) - German chemicals distributor Brenntag beat quarterly core profit estimates on Wednesday, supported by price hikes and persistent efforts to cut costs amid a challenging market environment.
Impact of Geopolitical Events on the Chemical Industry
The U.S.-Israeli war with Iran has disrupted fuel and feed-stock markets, impacting global supply chains and driving up prices for the energy‑intensive chemical industry.
Industry-Wide Pricing Strategies
To offset higher costs, chemical companies including Brenntag, Wacker Chemie, Lanxess, BASF, Evonik, EMS Chemie and Sika have raised prices, in some cases multiple times across different products.
Company Initiatives and Financial Outlook
Organizational Changes and Cost-Cutting Measures
Brenntag CEO Jens Birgersson said in a statement the group's flatter and more agile organizational structure has proved its worth as the firm navigates supply‑chain disruptions stemming from the Middle East crisis.
The company's cost-cutting program delivered 27 million euros ($31.7 million) in savings in the first quarter, keeping it on track to achieve between 200 million euros and 250 million savings by 2027, the CEO said.
Earnings Forecast and Analyst Expectations
Brenntag confirmed its 2026 earnings forecast on the solid performance year-to-date and supported by most recent positive pricing dynamics. The chemicals distributor projects operating earnings before interest, taxes, depreciation and amortization to be between 1.15 billion and 1.35 billion euros for 2026.
Operating EBITDA declined to 217 million euros for the first quarter, down from 264.3 million a year earlier, but above analysts' average forecast of 208.8 million euros in a poll by Vara Research.
Additional Information
($1 = 0.8523 euros)
(Reporting by Ozan Ergenay and Marta Frackowiak in Gdansk; Editing by Mrigank Dhaniwala)
