Brenntag has today announced its detailed strategic growth plan including new mid-term targets until 2026. The comprehensive ‘Strategy to Win’ comprises dedicated growth strategies for both divisions, Brenntag Specialties and Brenntag Essentials, details and targets for the company’s digital, data, and excellence transformation as well as its sustainability and M&A strategy.
Said Christian Kohlpaintner, Chief Executive Officer, Brenntag SE: “Brenntag is the undisputed and resilient leader in an attractively growing and highly fragmented, indispensable market. We have now defined how to strengthen and expand this position. We aim to foster growth in our global divisions with clear differentiated strategies. Moreover, we build a comprehensive digital and data framework and architecture to better serve our global customer base and achieve the next level of operational efficiency, growth, and excellence. With our comprehensive and ambitious ‘Strategy to Win’ we aim to outpace the underlying market growth. Brenntag will play a crucial role in the ecosystem of sustainable global chemicals and ingredients distribution.”
With distinct divisional strategies and by leveraging the company’s global setup and reach, Brenntag will further sharpen the profiles of its divisions and accelerate their growth above market average.
Added Kristin Neumann, Chief Financial Officer Brenntag: “Brenntag presents a resilient service and distribution platform with high geographical and operational diversification and a strong track record of compounding growth. This foundation enables us to meet our ambitious growth targets going forward. To appropriately reflect our profitability, we will transition to EBITA as our lead KPI and aim for an operating EBITA conversion ratio on group level between 35% and 37%. We will focus on growth through organic re-investments as well as through value creating M&A activities. At the same time, we will proceed with our financial discipline that has proven to be very successful in the past. We will also make sure that we will integrate the acquired companies properly.”
The company sees strategic mergers and acquisitions as an enabler of future growth and thus will double the annual planned M&A spend to around EUR 400 to 500 million. As a leading consolidator in the industry, Brenntag’s acquisition strategy will be focused on five key pillars, such as the accelerating growth in Life Sciences globally, enhancing strategic capabilities and market positions, expanding positions in emerging markets in both divisions, filling white spots to complement the existing portfolio, and improving tech capabilities that enable efficiency gains.
Having outperformed the industry average in a variety of sustainability benchmarks and rankings, and ESG is a key component of Brenntag’s strategy. The company aims to be a leader in the responsible distribution of sustainable chemicals and ingredients and to shape the sustainability agenda of the industry. With projects like an internal carbon management program, product and supply chain decarbonization, sourcing of renewables or biomaterials, and circularity of materials, Brenntag adds to its already announced goals of 100% green energy use by 2025, net zero carbon emissions by 2045 as well as a Total Recordable Incident Rate (TRIR) of less than 2.0 and no severe accidents by 2030.
The announced strategy is rooted in Brenntag’s identity and commitment which is expressed in a new Purpose and Vision 2030.
Concluded Kohlpaintner: “As Brenntag, we have a clear understanding why we are important for our customers, supply partners, and basically for everyone: We connect with products, knowledge, and innovation to foster a sustainable future and care for human needs. We have the vision and the capabilities to shape the future of our industry by empowering our partners within networks, driving collaboration, excellence, and shared success.”
A new global brand marks this new identity and era for the company as a strong statement to manifest the development and the ambitions of Brenntag towards its stakeholders. For more visit brenntag.com
