By: ICN Bureau
Last updated : August 07, 2021 8:31 am
Demand for Evonik products increased significantly worldwide with sales prices also rising in the first half of the year
Evonik sales gained 29 percent to €3.64 billion in the second quarter compared with the same quarter in 2020 whereas adjusted net income increased 58 percent to €253 million with adjusted earnings per share rising from €0.34 to €0.54.
Keeping in view Q2 results, Evonik has raised its outlook for 2021 after posting strong earnings in the first half. Demand for Evonik products increased significantly worldwide with sales prices also rising.
"We have emerged out of the crisis stronger than before and have made substantial gains in the first half," said Christian Kullmann, chairman of the board of management.
"This positive dynamic will continue into the second half. Therefore, we are confident about raising our outlook. From today’s perspective we will even end up in the upper part of the range,” added Kullman.
Specialty Additives: The division's sales rose 23 percent to €922 million in the second quarter. Additives for polyurethane foams, for example for the construction industry or durable goods such as mattresses and refrigerators, saw significantly higher demand with sales rising strongly compared to the corona-related weaker quarter last year. Additives for the coatings industry also recorded significant sales growth in all regions. Good demand for renewable energy products continued.
Nutrition & Care: Sales at Nutrition & Care rose 13 percent to €838 million in the second quarter. Sales of essential amino acids increased with good volume demand and improved selling prices. The products for the health and care sector benefited from good demand and achieved considerably higher sales. Active ingredients, particularly for cosmetic applications, benefited from a very good volume development.
Smart Materials: The division's sales improved by 35 percent to €975 million in the second quarter. High-performance polymers saw a significant increase in demand from the auto industry. Polyamide 12 powders for 3D printing and membranes for efficient gas treatment were also in high demand. The tire silica business benefited from a strong upturn in demand compared to the corona-related weaker quarter last year. Active oxygen products recorded good volume demand both in the specialty business and in the classic hydrogen peroxide business.
Performance Materials: The division's sales rose by 62 percent to €708 million in the second quarter. Sales of C4 products increased significantly with increasing demand and strongly improved selling prices. The superabsorbent business continues to be affected by a difficult market environment.
For 2021 Evonik now expects adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) of between €2.3 billion and €2.4 billion for the full year. Previously the range was €2.1 billion to €2.3 billion. The outlook for sales is now €13 billion to €14.5 billion, up from a previously expected €12 billion to €14 billion. Last year Evonik posted adjusted EBITDA of €1.91 billion and sales of €12.2 billion.
In the second quarter, adjusted EBITDA rose 42 percent to €649 million compared with the prior-year quarter. Even compared with the pre-corona second quarter of 2019, adjusted EBITDA gained, growing 15 percent. The main drivers were all three growth divisions - Specialty Additives, Nutrition & Care and Smart Materials, which demonstrated their resilience despite higher raw-material costs.