Brenntag says 2025 core profit to be at lower end of guidance (updated)
12/11/2025 06:32
Adds analyst comment on Q3 beat in paragraph 7, updates share move and adds milestone in paragraph 8 By Ozan Ergenay and Marta Frackowiak Nov 12 (Reuters) - German chemicals distributor Brenntag BNRGn.DE said on Wednesday that its annual profit would be at the lower end of its guidance, citing weak and unpredictable market conditions. The group expects earnings before interest, taxes and amortisation (EBITA) of 950 million to 1.05 billion euros ($1.11 billion to $1.22 billion) for 2025. It had already lowered the guidance range in July. "My first months have been characterized by challenging market conditions without any short-term signs of improvement," CEO Jens Birgersson, who took up the position in September, said in a statement. Market concerns about higher interest rates, inflation, trade turmoil and a patchy global economy have mounted pressure on an industry already hit by weak demand, high energy costs and supply chain issues. Analysts from J.P. Morgan said the third-quarter results were weak, reflecting those pressures, but still better than the market had feared. Brenntag posted a 14% drop in its third-quarter operating EBITA to 243 million euros, while analysts polled by Vara had expected 239 million euros on average. The beat was mainly driven by a better-than-expected gross profit in the commodity chemicals distribution business, the analysts said in a research note. Shares of the company jumped around 6% in the first hour of trading and could see their biggest one-day rise since March if the gains hold through the day. Brenntag, which has been under pressure from activist investors to break up its businesses and spin off its specialities unit, ruled out such a move and said its two divisions would stay within one group. "A full separation of Brenntag Specialties and Brenntag Essentials is no longer under consideration as it is not in the interest of Brenntag," Birgersson said. The company also said its cost-saving efforts were progressing as planned, and additional steps to improve efficiency, including job cuts, were being considered. It realised 45 million euros in savings in the third quarter and is on track to meet the 300-million-euro annual cost-cutting goal by 2027, finance chief Thomas Reisten said. ($1 = 0.8575 euros) (Reporting by Ozan Ergenay and Marta Frackowiak in Gdansk, editing by Matt Scuffham and Milla Nissi-Prussak) ((Ozan.Ergenay@thomsonreuters.com;))