The Chemical Distributor Brenntag Suffered in the First Quarter Due to Price Pressure and Lower Demand in Certain Markets and Industries. The Brenntag Specialties Business Division Was Particularly Affected. Revenue and Earnings of the DAX-Listed Group Declined More Than Analysts Expected. For 2024, the Company Now Expects an Operating EBITA at the Lower End of the Range Mentioned in March, between 1.23 and 1.43 Billion Euros.

In the first quarter, Brenntag posted revenues of around 4 billion euros, representing a decline of 10.9 percent compared to the previous year's quarter. The decrease in revenue is mainly due to lower sales prices, which could not be fully offset by increased sales volumes. The operating gross profit fell by 5.1 percent to 984.4 million euros, while the operating EBITA decreased by 24 percent to 259.7 million euros. Earnings per share stood at 0.97 euros compared to 1.40 euros in the previous year. The result after taxes and minority interests fell to 141.4 million euros from 216 million euros last year.

Analysts had consensus expectations of revenue of 4.27 billion euros, earnings per share of 1.07 euros, and net income after taxes and minorities of 157 million euros. "Although we were able to capitalize on business opportunities due to our robust business model with its global reach and broad portfolio, we are not satisfied with our performance in the first quarter of 2024," said Christian Kohlpaintner, CEO of Brenntag SE.

On Tuesday morning, a significant price drop was evident in Brenntag shares. The chemical distributor's stock fell by more than 6 percent to 73.04 euros on the Tradegate exchange platform, marking the lowest XETRA level since November.

Analyst Suhasini Varanasi from Goldman Sachs observed similar weak trends at Brenntag at the start of the year as with industry peers IMCD and Azelis. The outlook shifted to the lower end of the target range implies a consensus correction of four percent. Expert Chetan Udeshi from JPMorgan also considers the new targets to be optimistic.