In the third quarter of this year, Evonik again earned significantly more than in the same period of the previous year. Group sales increased by two percent to €3.83 billion. Prices remained stable, while sales volumes rose by five percent. Adjusted Ebitda increased by 19 percent to €577 million from July to September. As a result, the specialty chemicals group reached the level of the second quarter, as forecast. In the first nine months of the current year, Evonik has already posted an adjusted Ebitda of €1.68 billion, which is more than in the entire 2023 fiscal year. Imcome after taxes improved to €227 million. 

“We have delivered the third positive quarterly result in a row,” says Christian Kullmann, Chairman of the Executive Board. ”This is all the more remarkable given that the economic crisis is blowing a cold headwind in our faces. Nevertheless, we will achieve our financial targets for the current year. We are on the right track, and our team performance is strong.” Maike Schuh, Chief Financial Officer, adds. ”This success is based on our increased focus on the right, less cyclical markets, our restructuring programs and our cost discipline. We are continuously working our way out of the trough of 2023.”

Company expects savings of around €400 million in 2024

According to the company, the various initiatives to reduce costs and build a lean organization are taking effect. Evonik expects savings totaling around €400 million from these initiatives in the current year. These are offset by expected cost increases in some areas, such as wages and salaries.

At the same time, the company is setting the course for future growth. The new innovation strategy presented in the third quarter envisages focusing research and development on three growth cores: bio-based solutions, energy system transformation, and circular economy. Evonik aims to generate additional sales of €1.5 billion by 2032 with products and solutions for these globally relevant sustainability trends.

Evonik is driving forward the restructuring of its portfolio

The portfolio realignment toward high-margin growth businesses is progressing as planned. The superabsorbers business was transferred to the new owner ICIG on August 31. Evonik has also announced that it will focus the two business lines Health Care and Coating & Adhesive Resins on their growth businesses. The company intends to divest businesses with sales of around €350 million.

Business performance in the chemicals and plastics businesses

• Specialty Additives: Sales increased by two percent in the third quarter to €897 million. Markedly higher sales volumes contributed to this. Lower selling prices, which resulted primarily from passing on lower raw material costs, and slightly negative currency effects had the opposite effect. In particular, products for the coatings and paints industry saw significantly higher demand, while selling prices declined slightly. Sales of oil additives also increased worldwide, with higher volumes. Sales of additives for polyurethane foams and durable consumer goods were slightly below the previous year's level, with lower selling prices and negative currency effects.
• Nutrition & Care: Sales increased by eight percent to €996 million in the third quarter. Higher volumes and selling prices contributed to this, while negative currency effects had the opposite effect. The essential amino acids business in the area of animal nutrition benefited from a slight increase in volumes. The segment posted significantly higher sales, in particular due to higher selling prices than in the previous year. Revenues in the Health & Care division rose due to higher demand.
• Smart Materials: Third-quarter sales were roughly level with the previous year at around €1.1 billion. The effect of slightly higher volumes was offset by negative currency effects.  Inorganics benefited from higher demand, especially for silicas. Sales in the Polymers division declined slightly due to prices.
• Performance Materials: The division's sales fell by ten percent to €557 million. This is due to the divestment of the superabsorbents business as of August 31, 2024, without which sales would have increased. In the business with C4 composite products (Performance Intermediates), sales were above the previous year's level, with higher demand and slightly lower selling prices. 

Outlook: Evonik confirms raised forecast

Evonik confirms the raised outlook for the current fiscal year from the summer. Adjusted Ebitda is still expected to be between €1.9 and €2.2 billion. Sales are expected to be between €15 and €17 billion.