Chemicals group Brenntag reports slight miss in annual sales (updated)
04/03/2026 08:11
Adds share move in paragraph 1, comments on Middle East conflict in paragraphs 6-8. By Tristan Veyet March 4 (Reuters) - German chemicals distributor Brenntag BNRGn.DE reported yearly sales slightly below market expectations on Wednesday, citing pricing pressure that weighed on demand and margins, sending its shares 1.5% lower in early trading. The German chemical sector, the country's third-largest, has been struggling for years with subdued demand, high energy costs, supply chain issues and an economic slowdown. Brenntag posted sales of 15.2 billion euros ($17.7 billion) for 2025, missing analysts' expectations that saw them at 15.3 billion euros, according to a poll by Vara Research. The group said it targeted operating earnings before interest, taxes, depreciation and amortization (EBITDA) of between 1.15 billion and 1.35 billion euros in 2026, compared with the 1.29 billion euros it reported for last year. At the midpoint of the range, the forecast is below analysts' 2026 estimate of 1.30 billion euros, the Vara poll showed. The 2026 forecast does not take recent turmoil in the Middle East into account, the company said. "According to our current assessment, direct impact on availability has been limited, whilst the threat from supply chain disruption on short notice is very real," a Brenntag spokesperson told Reuters when asked about the escalating conflict. "Consequently, our primary focus remains in retaining resiliency in supply and service across our network, whilst attempting to mitigate rising costs already witnessed in feedstocks and logistics," the spokesperson added. The chemicals group said it planned to propose an annual dividend of 1.90 euros per share, down from last year's payout of 2.10 euros per share. ($1 = 0.8604 euros) (Reporting by Tristan Veyet in Gdansk, editing by Milla Nissi-Prussak) ((Tristan.veyet@thomsonreuters.com;))