The Brenntag Group reported sales of €8,178.9 million for the first half of 2024, reflecting a 6.9% decline compared to the same period last year. On a constant currency basis, sales fell by 6.6%, primarily due to lower sales prices that were not compensated by higher volumes.
The Group’s operating gross profit reached €2,012.3 million in the first half, marking a 2.6% year-on-year decline (2.3% on a constant currency basis). The Brenntag Specialties division saw a slight increase in volumes, but a decrease in operating gross profit per unit led to a moderate overall decline. Similarly, the Brenntag Essentials division experienced strong volume growth, but a significant drop in operating gross profit per unit compared to a strong prior year affected its overall performance.
Operating EBITDA for the Brenntag Group came in at €727.6 million, down 12.3% year-on-year (11.9% on a constant currency basis). The group recorded €170.8 million in depreciation of property, plant, and equipment as well as right-of-use assets, compared to €152.8 million in the first half of 2023. The increase was largely driven by acquisitions and investments in logistics operations in North America and the EMEA regions.
Operating EBITA for the group was €556.8 million, reflecting a 17.8% decline from the previous year. On a constant currency basis, this represents a 17.3% decrease in earnings. The overall reduction in both divisions was driven by a drop in operating gross profit per unit, combined with rising costs and volume impacts.
The company incurred expenses of €22.5 million in the first half of 2024 related to strategy projects, including advisory and severance costs for the planned legal and operational separation of Brenntag Specialties and Brenntag Essentials, aimed at achieving cost reduction targets.
Additionally, €19.7 million was recognized for legal risks stemming from the sale of talc and similar products in North America, driven by an increasing number of legal actions. Profit after tax for the first half of 2024 stood at €295.0 million, down from €406.2 million in the same period last year.
