Evonik earnings up by a quarter in 2024

Iranpolymer/Baspar  Essen, Germany – Cost-cutting and restructuring efforts at Evonik appear to be taking effect, with the company reporting a 24.7% increase in adjusted EBITDA, from 2023’s €1.66bn to €2.06bn in 2024. This was on the back of a slight decline in sales, which fell to €15.16bn from €15.27 in 2023.

In its specialty additives division, which includes PU additives, sales were up by 2.8%, rising to €3.6m, and adjusted EBITDA up 11% to €744m. Volumes were considerably higher, the company said, offset by selling prices that were down after lower raw material costs were passed on to customers. However, sales of additives for PU foams and consumer durables were down slightly because of a small downward trend in selling prices.

It also said that its Next Generation Solutions products with proven sustainability advantages, including biobased and circular economy products, now account for 45% of its sales. This is up from 43% in 2023.

“We advanced during the economic and political headwinds of last year,” said CEO Christian Kullmann. “We have become more robust. That will continue to pay off this year, even though the environment remains difficult. We have to keep pushing.”

The Evonik Tailor Made efficiency programme is, the company said, now in full implementation mode. By the end of 2026, this should deliver a reduction in annual costs of about €400m, it said.

As announced in December, as of 1 April this year its chemical businesses will operate in two segments, custom solutions and advanced technologies. This will eliminate the division level, and with it an entire management level in the operating business. Polyurethane additives will sit in the custom solutions business.

“The new setup allows for a more targeted management of the individual chemical businesses and will provide them with the appropriate resources for innovation and investment,” the company said.

Adjusted EBITDA for the first quarter of 2025 is expected to be up from that achieved in the 2024 quarter. For the full year, it is predicted to be between €2.0bn and €2.3bn.

“The uncertain economic situation requires us to work all the harder in 2025,” said CFO Maike Schuh. “It is in our own hands: with disciplined management of costs and capital expenditures, we are laying the foundation for higher profitability and returns.”

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