ESSEN (dpa-AFX) - The chemicals trader Brenntag has started the new year with a sharper decline in profits than expected. Adjusted earnings before interest, taxes, depreciation and amortization (operating Ebita) fell by almost a quarter year-on-year to 259.7 million euros in the first quarter, the DAX-listed company announced in Essen on Tuesday. The bottom line was a profit attributable to shareholders of 141.4 million euros after 215.9 million euros in the previous year. Analysts had expected a higher operating profit on average. At around four billion euros, turnover shrank by just under 12 percent.

"We are not satisfied with our performance in the first quarter of 2024," said CEO Christian Kohlpaintner according to the press release. The difficult market conditions with geopolitical tensions and ongoing inflationary trends led to price pressure and lower than expected demand in certain markets. This had an impact on Brenntag's results in both divisions. For the year as a whole, the Group is now only targeting the lower end of the profit forecast of 1.23 billion to 1.43 billion euros issued in March. In the worst case scenario, this would mean a decline in adjusted earnings before interest, taxes and goodwill amortization (operating Ebita) compared to the previous year./mne/stk