Evonik materially lifts outlook for 2024
In a challenging environment, Evonik has reported preliminary key figures for the second quarter, exceeding analysts’ expectations and raising its outlook for the fiscal year 2024.
Based on preliminary and unaudited figures, Evonik achieved an adjusted EBITDA of €578 million in the second quarter, 29 percent higher than the previous year (Q2 2023: €450 million). Analysts had expected €531 million (Vara consensus as of May 29, 2024). The result is also 11 percent higher than the first quarter. Due to the absence of a broad-based macroeconomic recovery, specific company factors contributed to this development: strict cost discipline, good volume development in Specialty Additives, a price recovery in Animal Nutrition, and lower production costs were key drivers of the increase.
As a result, Evonik is raising its outlook for adjusted EBITDA, increasing the range for the full year 2024 by €200 million. Earnings are now expected to be between €1.9 billion and €2.2 billion (previously: €1.7 billion to €2.0 billion). Sales in the second quarter were just above €3.9 billion, based on preliminary figures, similar to the previous year (Q2 2023: €3.9 billion). Cost-saving measures led to lower costs across the Group, positively impacting the adjusted EBITDA margin, which improved by 3.1 percentage points year-on-year to 14.7 percent (Q2 2023: 11.6 percent). Evonik will publish final figures for the second quarter of 2024 on August 1, 2024.
Development of the Divisions
- Specialty Additives: Adjusted EBITDA of €220 million, a 19 percent increase from the first quarter, and 10 percent higher than the previous year (Q2 2023: €199 million). The adjusted EBITDA margin increased to around 23 percent. Sales volumes and capacity utilization increased, supported by falling raw material prices.
- Nutrition & Care: Adjusted EBITDA of €140 million, doubling earnings compared to the previous year (Q2 2023: €71 million). This was primarily due to Animal Nutrition, where price increases offset lower volumes from a shutdown for capacity expansion in Singapore, which ended as planned at the end of the quarter. Care Solutions also showed a positive trend.
- Smart Materials: Adjusted EBITDA increased by 41 percent to €171 million (Q2 2023: €122 million) and 8 percent compared to the previous quarter. This improvement was driven by a slight recovery in inorganic products and lower raw material costs.
- Performance Materials: Adjusted EBITDA of €52 million, 17 percent higher than the previous year (Q2 2023: €45 million) and 22 percent higher than the first quarter. Disrupted supply chains had a positive impact, particularly in the oxo alcohol and plasticizer businesses.
- Technology & Infrastructure / Other: The Group’s contingency measures had a positive effect, but this was offset by higher provisions totaling around -€30 million, among others for variable compensation. Adjusted EBITDA was minus €5 million, compared to a plus of €13 million in the same quarter of the previous year.
