NEWS
Brenntag plans changes in a difficult market
During its Q3 results presentation, Brenntag announced multiple organisational, cost and strategic initiatives“ to drive sales, simplify the organisation and enhance execution”. This came in the wake of a“ persistently challenging and volatile market environment”.
As of 1 December, the company has changed its governance model to a two-member management board comprising new CEO Jens Birgersson and CFO Thomas Reisten plus an executive committee, in order to be more agile in its decisionmaking. This replaces the model of divisional CEOs and executive committees introduced in 2023.
Brenntag will also reduce jobs globally, mainly in headquarters and support functions, and will continue to optimise its site network, including possible closures and market exits. However, it is no longer considering a full separation of Brenntag Specialties and Brenntag Essentials.
“ I value both divisions, and we must grow and invest in both,” Birgersson said.“ Both divisions benefit from significant synergies in costs, personnel, operational infrastructure and market access, representing a unique competitive advantage for Brenntag.”
The company has initiated a group-level strategy review“ to ensure its business and operating model remain fully aligned with evolving customer requirements and market dynamics”. It expects
Airedale brings extra blending and formulation to Brenntag
to present this in 2H 2026 and will focus on sales and execution in the interim.
In Q3, sales were 4.7 % down year-on-year at € 3,718 million, while operating gross profit was 3.1 % down at € 947 million and operating EBITDA fell by 6.7 % to € 330 million. The company has accelerated the implementation of its costcontainment programme with € 45 million in savings in the quarter.
Brenntag Specialties was slightly harder hit than Brenntag Essentials, with a 5 % fall in sales to € 1,181 million, a 5.1 % fall in operating gross profit of € 269.7 million and a 13.0 % fall in EBITDA to € 100.7 million. Life Science and Material Science saw the highest falls in EBITA. Nutrition, Beauty & Care and Pharma were more stable, with the performance in Europe better than in the Americas and APAC.
Brenntag subsequently signed an agreement to acquire the UKbased and hitherto family-owned Airedale Group in a deal that is expected to close in Q1, subject to customary conditions. Financial details are not being disclosed but it is known that Airedale had sales of £ 81 million in 2024. This will add“ significant blending and formulation capabilities” in the UK, the company said.
Airedale started as a small dye trader in 1973 and has grown through expansion, acquisition and product diversification into a chemical distributor. Some of its major acquisitions have been in the food and beverage and metal surface treatment sectors.
6 SPECIALITY CHEMICALS MAGAZINE ESTABLISHED 1981