Brenntag plans changes in 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 will change its governance model to a two-member management board comprising new CEO Jens Birgersson (pictured) and CFO Thomas Reisten plus an executive committee, in order to be more agile in its decision-making. This replaces the model of divisional CEOs and divisional executive committees introduced in 2023.

Brentag will also reduce jobs globally, mainly in headquarters and support functions, and will continue to further 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.”

Brenntag 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 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 implement of its cost containment 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. The 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.