Brenntag's €350M digital push aims to slash costs by 2027
Chemical distributor Brenntag has unveiled a bold new strategy to boost efficiency and cut costs. The plan includes a €350 million digital overhaul and aims to save €300 million a year by 2027. Investors responded positively, pushing shares up by 7.41% to €51.78 after the announcement.
The company reported a revenue of €15.2 billion for fiscal 2025, though operating EBITDA fell to €1.29 billion. Despite the decline, Brenntag increased free cash flow to €941 million during the same period.
Rather than splitting its Essentials and Specialties divisions, Brenntag will focus on streamlining operations. CEO Jens Birgersson dismissed a full break-up, highlighting the value of keeping the two units together for synergies. The centrepiece of the new approach is the 'DiDEX' initiative, a €350 million investment to digitise supply chains by 2026. The company expects this programme to add €200 million annually to earnings. Alongside this, an accelerated cost-cutting drive targets €300 million in yearly savings by 2027. Looking ahead, Brenntag forecasts operating EBITDA between €1.15 billion and €1.35 billion for fiscal 2026.
The efficiency push and digital investment mark a shift in Brenntag's strategy. With shares climbing and clear financial targets set, the company is positioning itself for stronger performance in the coming years. The focus remains on improving margins and cash flow through technology and cost control.
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