MOSCOW (MRC) -- Brenntag, the global market leader in chemicals and ingredients distribution, continues its growth path and reports very strong results in the second quarter of 2022 in a macro-economic market environment that has been and remains highly challenging, said the company.
The severe geopolitical uncertainties add to the continued pressure on global supply chains. Brenntag’s two global divisions, Brenntag Specialties and Brenntag Essentials, continued their strong growth seen at the beginning of the year, resulting in a very positive first half of 2022.
Christian Kohlpaintner, Chief Executive Officer of Brenntag SE, said “Brenntag continues on its growth path, achieving very strong results in the second quarter of 2022 with excellent organic growth in both divisions. We are particularly pleased by the progress of our ambitious transformation program Project Brenntag, which will achieve our targets already by the end of 2022, one year ahead of plan. We expect from the remaining transformation initiatives an additional positive operating EBITDA impact for 2023, which will be quantified later this year. Our full year results are now expected at the upper range of our upgraded guidance provided in June."
In the second quarter 2022, Brenntag generated sales of 5,061.2 million EUR. Operating gross profit rose by 28.0% to 1,144.8 million EUR compared to 838.7 million EUR in previous year’s quarter. Operating EBITDA reached 533.8 million EUR, a strong year-on-year increase of 41.0%. Earnings per share totaled 1.86 EUR which represents more than a doubling of last year’s EPS.
“In the highly challenging environment of the first half of 2022, product availability as well as prompt and reliable delivery were once again key for Brenntag’s success. We were able to translate the positive gross profit growth into an over-proportional operating EBITDA growth, which is reflected in a very strong conversion ratio for the group of 46.6%”, comments Kristin Neumann, Chief Financial Officer of Brenntag SE.
As MRC reported earlier, last summer, Brenntag acquired all operating assets and business of Matrix Chemical, LLC. The company is a solvents distributor and the largest distributor of acetone in North America with sales of around USD 200 million year to date in 2021. Along with phenol, acetone is largely used to produce bisphenol A (BPA), which, in its turn, is used in the production of plastics such as polycarbonate (PC) and epoxy resins.
BCD Chemie, a Brenntag Group company, is headquartered in Hamburg, Germany. It focuses on the pan-European marketing of industrial and performance chemicals. As a link between manufacturers of high-quality chemical raw materials and users from many industries, BCD Chemie provides B2B sales solutions for a wide range of industries and applications. Profound market knowledge, competent product and application consulting as well as comprehensive expertise in chemical-technical and market-analytical contexts form the basis of its philosophy of modern chemical distribution.