Brenntag : 11/08/2017 Brenntag posts strong growth in all regions in the third quarter and confirms forecast for 2017 as a whole

• Gross profit* grows by 4.3% to 619.4 million EUR (as reported)
• Operating EBITDA** up by 5.3% on the previous year to 216.0 million EUR (as reported)
• Quarterly earnings supported by growth in all the Group's regions
• Profit after tax amounts to 100.8 million EUR and earnings per share to 0.65 EUR
• Outlook for 2017 confirmed: operating EBITDA still forecast to be between 820 and 850 million EUR

Brenntag, the global market leader in chemical distribution, posted a strong performance in the third quarter of 2017, achieving an increase in both operating gross profit* and operating EBITDA**. This growth was supported by all four of the Group's regions, with the North America segment in particular delivering strong earnings. In light of this positive performance, the Brenntag Group is confirming its forecast for 2017 as a whole: it expects growth in its key performance indicators operating gross profit and operating EBITDA.

Brenntag generated sales of 2,892.5 million EUR in the third quarter of 2017, an increase of 10.4% on the prior-year period (+13.9% on a constant currency basis). The Group's key performance indicator gross profit* rose by 4.3% (+7.7% on a constant currency basis) to 619.4 million EUR. Operating EBITDA** reached 216.0 million EUR, an increase of 5.3% compared with the prior-year quarter (+8.5% on a constant currency basis).

Profit after tax was up on the prior-year figure of 93.4 million EUR to 100.8 million EUR in the third quarter of 2017. This translates into earnings per share attributable to Brenntag shareholders of 0.65 EUR (+8.3%).

At 146.0 million EUR in the third quarter of 2017, free cash flow was down on the prior-year figure (190.1 million EUR), due mainly to the increase in chemical prices and the resulting rise in working capital.

Steven Holland, Chief Executive Officer of Brenntag AG, said, 'We delivered a strong performance in the third quarter of 2017. All regions contributed to this result and showed positive growth. North America in particular delivered excellent earnings and strong organic growth. We are pleased with this encouraging performance from the Group in the third quarter. Against this background, we are confirming the forecast given for 2017 as a whole.'

EMEA sees growth in operating gross profit and operating EBITDA
Brenntag EMEA (Europe, Middle East and Africa) achieved operating gross profit of 269.6 million in the third quarter of 2017, a year-on-year increase of 4.2% on a constant currency basis (+3.2% as reported). Operating EBITDA also climbed, rising by 3.7% on a constant currency basis (+2.7% as reported) to 90.6 million EUR. In the third quarter, the region began to implement the announced efficiency programme, which is scheduled to be completed in the course of the year.

North America continues strong performance
The North America region reported very encouraging increases in earnings in the third quarter of 2017, driven primarily by strong organic growth. Operating gross profit rose by 9.7% on a constant currency basis (+4.3% as reported) to 265.6 million EUR. Operating EBITDA climbed to 103.6 million EUR, a year-on-year increase of 12.3% on a constant currency basis (+7.6% as reported). Brenntag North America continues to demonstrate strong organic growth.

Latin America increases earnings in slightly improved environment
Brenntag lifted earnings in the still volatile Latin America region in the third quarter of 2017. Operating gross profit rose by 5.2% on a constant currency basis (+0.7% as reported) to 42.0 million EUR. At 10.6 million EUR, operating EBITDA showed a clear increase of 17.0% on the prior-year period on a constant currency basis (+12.8% as reported). This performance is mainly attributable to improving economic conditions in Brazil.

Good earnings growth in Asia Pacific
The Asia Pacific region posted an encouraging third quarter of 2017 with improved earnings. This positive performance was supported both by organic growth and the successful integration of recent acquisitions. Operating gross profit reached 51.1 million EUR, a year-on-year increase of 15.7% on a constant currency basis (+10.1% as reported). Operating EBITDA rose by 17.6% on a constant currency basis (+12.6% as reported) to 18.8 million EUR.

Outlook for 2017
In light of the third-quarter results and economic trends in the regions, Brenntag is confirming its forecast for 2017 as a whole: the Group continues to expect growth in its key performance indicators operating gross profit and operating EBITDA, with operating EBITDA still anticipated to be in the 820 to 850 million EUR range (before special items and assuming exchange rates remain unchanged over the period to year-end).