Evonik releases the first quarter of 2021 financial report: a strong start, raising expectations for the whole year

“3D Printing World” learned that Evonik had previously released a performance report for the first quarter of 2021. In 2021, Evonik has a strong start, releasing an optimistic signal for good earnings throughout the year. Thanks to the increase in global market demand and the increase in sales prices, Evonik’s sales and earnings increased in the first quarter. The three growth business sectors of specialty additives, nutrition and consumer chemicals, and smart materials continued to drive performance and demonstrated impressive growth momentum.

Couleman, Chairman of Evonik Industries Group, said: “The strong start of the first quarter gives us full confidence in the good performance of the year. The first quarter’s revenue has improved significantly compared with 2020, and the relevant data is even better than before the epidemic in 2019. Our growth strategy is working.” At present, Evonik expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to rise to between 2.1 billion euros and 2.3 billion euros in 2021. Previously, the group estimated that the adjusted EBITDA would be no less than 2 billion euros. Sales are expected to be between 12 billion euros and 14 billion euros. In 2020, Evonik’s adjusted EBITDA was 1.91 billion euros and sales were 12.2 billion euros. In the first quarter of 2021, Evonik’s adjusted EBITDA was 588 million euros, an increase of 15% over the same period in 2020 and an increase of 9% over the same period in 2019.

Sales in the first quarter increased by 4% year-on-year to 3.36 billion euros. Adjusted net income increased by 32% to 239 million euros. Thanks to the continued recovery of the group’s business development, strict working capital management, and lower tax expenditures, the free cash flow in the first quarter almost tripled from last year, reaching 312 million euros, higher than the level before the 2019 epidemic (159 million euros). EUR). Ute Wolf, Chief Financial Officer of Evonik, said: “The free cash flow in the first quarter has reached the highest level since the group’s listing in 2013. Our goal is very clear, that is, to achieve free cash flow growth. It seems that this strategy has been effective. .” Business sector performanceSpecialty additives business unit: sales in the first quarter increased by 6% to 907 million euros. The demand for coating additives in all regions has increased significantly, driving its sales to increase substantially. Increased market demand for durable goods has boosted sales of polyurethane foam additives used in mattresses and refrigerators.

The demand for additives in the construction industry remains strong. Demand for products in the renewable energy market has increased significantly, especially in the Asian market. The adjusted EBITDA of this business unit increased by 14% to 273 million euros. Nutrition and Consumer Chemicals Business Unit: Sales in the first quarter increased by 4% to 780 million euros. Sales of essential amino acids for animal nutrition remained stable. Products related to medical and health care and nursing products were driven by market demand and performed well. Among them, the active ingredient business for cosmetics continued to develop well. Thanks to higher selling prices and active cost management measures, the adjusted EBITDA of this business unit increased by 21% to 143 million euros. Smart Materials Business Unit: Sales in the first quarter increased by 6% to 909 million euros. In the inorganic material application market, the silica business used in the tire industry has recovered as the global economy improves. Demand for cleaning and care products and environmentally friendly applications remains strong. The acquisition of Porocel, which was completed in November 2020, has a positive impact on the catalyst business. The increase in market demand in the automotive industry has driven the development of the high-performance polymer business. Sales of polyamide 12 powder also increased. The adjusted EBITDA of this business unit increased by 4% to 173 million euros. Functional materials business unit: Sales fell 1% in the first quarter to 580 million euros. Due to the increase in market demand and the increase in sales prices, the sales of carbon four products increased. Due to the adverse weather, the production capacity of super absorbents declined in the first quarter, and business development was affected. The adjusted EBITDA of this business unit increased by 18% to 42 million euros.