Brenntag Specialties, Royal Avebe prolong partnership for food supply
POLAND—Brenntag Specialties, a division of Brenntag that focuses on distributing specialty chemicals and ingredients, has announced a further expansion of its business collaboration with Royal Avebe to supply potato starch.
Through this expanded partnership, Brenntag Specialties will supply its customers in Poland with potato starch and derivatives in addition to the broad range of European markets and countries it already serves.
Jerzy Jasiński, Global President Nutrition and President Brenntag Specialties EMEA, remarked: “The continued expansion of our partnership highlights our commitment to providing customers worldwide with innovative products sourced from outstanding, high-quality supply partners.
“With the Avebe and Brenntag Food & Nutrition partnership, we guarantee our customers first-class products, service, and delivery across Europe.”
Chris Hollebek, Royal Avebe’s Chief Commercial Officer, expressed excitement about expanding their collaboration with Brenntag, a trusted partner with a strong global presence.
He highlighted that, with existing distribution agreements in regions like the Nordic, Baltic, and Benelux countries, as well as Turkey, the partnership’s expansion into Poland would enable them to reach an even broader local customer base.
Hollebek noted that this development aligns with Royal Avebe’s “Accelerate and Strengthen” strategy.
Both companies started a partnership in June 2023 for the Turkish market. They quickly expanded the distribution of Avebe potato starch and derivatives to Food and nutrition customers in Benelux, the Nordics, and the Baltics.
Financial report 2024
The expansion comes after Brenntag delivered solid financial results for 2024 despite a challenging market environment.
The company reported an operating gross profit of EUR 4.4 billion (US$4.77 billion), an increase of -0.2% from the previous year and EBITA of EUR 1.9 billion (US$2.06 billion).
Sales were EUR 16.4 billion (US$17.77 billion), 3.2% below the previous year. The decrease was due to a decline in sales prices and could not be offset by the higher volumes.
Free cash flow was EUR 892.6 million (US$966.99 million), below the exceptionally high EUR 1.7 billion (US$1.86 billion) in 2023, due to the decline in operating EBITA and movements in working capital.
Brenntag Specialties reported stable volumes in 2024. However, a weaker operating gross profit per unit resulted in a slightly lower absolute gross profit of EUR 1.2 billion (US$1.3 billion) (-1.2 %).
Lower operating gross profit and inflation-driven cost increases led to an 11.9% decline in operating EBITA to EUR 446.9 million (US$484.15 million).
Brenntag expects 2025 to be another challenging year, shaped by ongoing economic and political uncertainties and subdued global economic growth.
The company foresees continued moderate volume improvements throughout the year and a slightly better sequential pricing environment.
Considering these conditions, Brenntag expects the Group’s operating EBITA for 2025 to be between EUR 1.1 billion (US$1.19 billion) and EUR 1.3 billion (US$1.41 billion). This forecast takes into account the earnings contributions from acquisitions already completed.
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