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German chemicals distributor Brenntag Q3 profit beats expectations

Published 09/11/2022, 06:47
Updated 09/11/2022, 06:50
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(Reuters) - German chemicals distributor Brenntag posted higher-than-expected third-quarter profit on Wednesday, saying it was able to balance European and global supply chains as rising energy costs affected the continent.

The group, whose services include storing large-scale quantities of chemicals and repackaging them into smaller quantities, said quarterly operating earnings before interests, taxes, depreciation and amortisation (EBITDA) rose 34% to 460 million euros ($463 million).

That compared with analysts' average estimate of 453 million euros in a company-provided poll.

"Spiking energy prices have had a strong impact on the overall macroeconomic situation and supply chains," Chief Executive Officer Christian Kohlpaintner said in a statement.

"Especially Europe is affected. Due to its position as a world market leader, Brenntag has the capability to balance European with global supply chains."

Global supply chains have started to ease as most economies now have a less strict approach towards the COVID-19 pandemic, with chemical distributors benefiting from picking up volumes of raw materials.

In August, Kohlpaintner had said that in the event of gas shortage, the immediate impact on the company would be minimal, as supply chains can be adjusted for chemical distributors.

Brenntag continues to expect reaching the upper range of its 2022 guidance of 1.75 billion to 1.85 billion euros in operating EBITDA.

The company said quarterly net income was 249 million euros, compared with an average 236 million euros expected by analysts.

($1 = 0.9933 euros)

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