Covestro has reported its financial results for the full-year 2022. Despite lower sales volumes as a consequence of the recessionary environment, Covestro’s group sales grew by 13% to €18.0 billion (previous year: €15.9 billion). A key factor in that was a considerably higher selling price level. High energy and raw material prices and slackening demand in the course of the year impacted the group’s EBITDA. It fell in full-year 2022 by 47.6% over the prior-year figure to €1.6 billion (previous year: €3.1 billion). 

Net income declined to €-272 million (previous year: €1.6 billion), in particular as a result of exceptional impairments of noncurrent assets totaling €463 million and impairment losses on deferred tax assets from tax loss carryforwards totaling €255 million. Despite the challenging economic environment, Covestro achieved a positive free operating cash flow (FOCF) of €138 million thanks to strong working capital management. ROCE above WACC in full-year 2022 was -5% (previous year: 12.9%). The nonfinancial key management indicator for reducing greenhouse gas emissions improved by 9.6% to 4.7 million metric tons of CO₂ equivalents (previous year: 5.2 million metric tons). 

"2022 was a year of polycrisis with unprecedented challenges for Covestro," said Markus Steilemann, Ph.D., CEO of Covestro. “That is reflected in our results for the fiscal year. The action we took last year was all the more resolute: We reduced our energy consumption, cut costs, and worked on further developing our products. Our vision of a circular economy as well as our strategy, ‘sustainable future,’ have proven to be a strong foundation. We are continuously gearing our product portfolio towards sustainable growth markets such as wind energy or electromobility, and serving the increasing demand for circular solutions. One thing is clear, our contribution is essential for a sustainable future."

For more information, visit: https://www.covestro.com/.