International. Brenntag reported that it returned to growth in fiscal 2017 and was able to increase its two key performance indicators, gross profit and operating EBITDA. This good result was supported by positive development on a broad base: the North American and Asia Pacific regions, in particular, impressed by its performance. But the largest gross profit region in the EMEA region, which also showed decent growth. The acquired companies made a pleasant contribution to profits.
Sales in the financial year 2017 amounted to EUR 11,743.3 million, 11.9% more than the previous year (+13.1% in constant currency). Gross profit, which is particularly important for Brenntag, also increased by 5.2% (+6.5% in constant currency) to EUR 2,554.1 million. Operating EBITDA reached €836.0 million in the year under review. This represents an increase of 3.2% year-on-year (+4.5% in constant currency). The result was therefore in the mid-range of 820 to 850 million forecast in August 2017.
The Brenntag Group's free cash flow amounted to €440.3 million in 2017, corresponding to a decrease of 31.4% compared to the high level of the previous year (€641.4 million). This is mainly due to an increase in working capital due to the relatively sharp increase in market prices of chemicals.
Attractive dividend proposal
Profit after tax amounted to €362.0 million in 2017 and therefore remained at the previous year's level of €361.0 million. Earnings per share reached EUR 2.34. On this basis, the Executive Board and the Supervisory Board will propose a dividend of €1.10 per share to the General Shareholders' Meeting on 20 June 2018 (2016: €1.05). The payout ratio is 47.1% of the net profit attributable to Brenntag shareholders. Brenntag continues its policy of paying its shareholders an annual dividend increase.
Steven Holland, CEO of Brenntag AG: "Overall, we are pleased with the development of the Group in fiscal year 2017. The operating business in all four regions has contributed to this on a broad basis. After a challenging period, we look forward to the continued recovery and growth of our North American region. Also satisfactory is the increased growth in the Asia Pacific region, which offers long-term potential as we continue to consolidate our network here. In 2017, the Group continued its acquisition strategy with several key acquisitions supporting food and life sciences growth and geographic expansion, especially in Asia Pacific. We hope that the measures and initiatives implemented in 2017 will bear fruit for the Group in 2018 and assume that the overall economic environment is positive."
