Brenntag, the German chemical distributor, shocked investors with a staggering 71% drop in quarterly net profit, plummeting from €149.1 million to just €42.9 million. Earnings per share nosedived to €0.30, far below the expected €0.80 and last year’s €1.03. Revenue fell over 7% to €3.87 billion, missing analyst forecasts of €3.95 billion. The collapse was driven by weak demand, aggressive price competition, and unfavorable currency exchange rates, particularly in Latin America, where asset writedowns exacerbated losses.
Gloomy Outlook and Cost-Cutting Measures
The company slashed its 2025 EBITA forecast to €950 million–€1.05 billion, down from an initial €1.1–€1.3 billion, signaling prolonged challenges. Despite the dismal results, Brenntag’s stock dipped only 0.29%, suggesting investors had anticipated the downturn. A €300 million annual cost-saving plan by 2027 aims to mitigate losses, but market pressures and sluggish demand persist, offering little hope for a near-term recovery.
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