Evonik has reported 19 per cent increase in its adjusted EBITDA to €577 million in July-September 2024 quarter.  As a result, the specialty chemicals company - as forecast – reached the earnings level of the second quarter (€578 million). In the first nine months of the current year, Evonik has already achieved an adjusted EBITDA of €1.68 billion, more than in the entire fiscal year 2023.

“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.”

Group sales rose by 2 percent to €3.83 billion in the third quarter. Prices remained broadly unchanged, while volumes increased by a gratifying 5 per cent. Thanks to the sustained strict cost discipline, the adjusted EBITDA margin rose by 2.2 percentage points to 15.1 percent (2023: 12.9 percent). Free cash flow decreased from €469 million to €357 million in the third quarter. However, this was due to a more even distribution of cash inflows during the first three quarters. At €701 million, the total free cash flow as of September 30, 2024, was €415 million higher than in the first nine months of the previous year.

“Our adjusted EBITDA and free cash flow trends are clearly pointing in the right direction - upward,” says Maike Schuh, Chief Financial Officer. ”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.”

The various initiatives to reduce costs and build a lean organization are paying off. In the current year, Evonik expects total savings from these of about €400 million. On the other hand, the company anticipates some cost increases, like higher wages.

At the same time, the company is setting the course for future growth. The new innovation strategy presented in the third quarter focuses research and development on three clearly defined growth areas: bio-based solutions, the energy transition, and the circular economy. By 2032, Evonik plans to generate additional sales of €1.5 billion with products and solutions for these globally relevant sustainability trends.

Meanwhile, the portfolio's shift towards high-margin growth businesses continues as planned. On August 31, the superabsorber business was handed over to its new owner ICIG. Evonik has also announced that it will focus two business lines, Health Care and Coating & Adhesive Resins, on their growth businesses. In total, Evonik will part with businesses with about €350 million in revenue.

Evonik confirms the recently raised financial outlook for 2024. The company continues to expect adjusted EBITDA of between €1.9 and €2.2 billion. Sales should be between €15 and €17 billion, the cash conversion rate around 40 percent. ROCE should be significantly higher than in 2023.