By Ozan Ergenay
(Reuters) -German chemicals distributor Brenntag expects 2025 to be another challenging year shaped by economic and political uncertainty and subdued global economic growth, though it sees little impact from implemented and upcoming U.S. tariffs.
“The situation in the U.S. is what it is, confusing, inscrutable and full of surprises,” CEO Christian Kohlpaintner said in a call with analysts and media on Wednesday.
Concerns are mounting amid U.S. President Donald Trump’s fluctuating trade policies on Mexico, Canada and China that could dampen consumer demand and corporate investment, and as he threatens to slap 25% tariffs on many goods from the European Union.
But Kohlpaintner said Brenntag’s business in North America would be comparatively little affected by the duties thanks to its global set-up.
“We source and then distribute more than 90% of our business there locally, so we’ll only perceive the impact of tariffs as a secondary effect if certain industries suffer in the competitiveness,” he said about North America which makes up around 40% of the group’s business.
Brenntag’s shares, which have gained 13.5% so far this year, rose 2% by noon local time, among top performers on Germany’s blue-chip index and Europe’s benchmark STOXX 600.
It forecast annual operating earnings before interest, taxes and amortisation (EBITA) of 1.1 billion to 1.3 billion euros ($1.2 billion to $1.4 billion) for 2025, compared to 1.1 billion last year.
While the 2024 earnings broadly matched market expectations, fourth-quarter operating EBITA missed them, falling 7.4% to 264 million euros versus a Vara consensus of 277 million.
“Multiple geopolitical challenges and uncertainties as well as a lack of consumer confidence impacted the economic development in 2024,” Brenntag said.
Germany’s chemical industry suffered through 2023 from high production costs and weak demand amid rising inflation, while early signs of recovery in 2024 faded by the half-year point.
The country’s chemical industry lobby VCI said on Wednesday it did not expect the sector to recover before 2026.
($1 = 0.9172 euros)
(Reporting by Ozan Ergenay in Gdansk; Editing by Milla Nissi)
