Evonik has reported its full-year 2022 financial results. The company’s sales increased by 24% to €18.5 billion. Volumes declined slightly, and prices for raw materials and energy rose sharply in some cases. Adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) rose by 4%, narrowly meeting the lower end of the forecast range of €2.5 billion to €2.6 billion. At €2.49 billion, earnings were reportedly the highest since 2012.
Net income declined, mainly due to an impairment of goodwill in the performance materials division amounting to €301 million. Adjusted net income increased by 7% to €1.05 billion. Free cash flow reached €785 million. This corresponds to a cash conversion rate of 32%, slightly above the target that Evonik had adjusted to 30% during the year.
"The effects of war, high inflation, and heavily fluctuating energy prices demanded a lot from us-and they still do," said Christian Kullmann, chairman of the executive board. "Nevertheless, we were able to achieve the best operating result in the past ten years. Evonik is well-positioned for difficult times. This will also pay off in the current year."
Evonik’s executive board and supervisory board will propose to the Annual General Meeting on May 31, 2023, an unchanged annual dividend of €1.17 per share. This represents an attractive dividend yield of around 5%.
Portfolio, sustainability, innovation: Sales from these innovation growth fields rose more than 20% last year to €600 million.
Specialty additives: Sales rose 13% to €4.18 billion as a result of significantly higher selling prices, mainly from passing on higher raw material costs, and positive currency effects. Additives for polyurethane foams for durable consumer goods and for the automotive industry generated higher sales at improved prices. Products for the construction and coatings industries and for renewable energies also developed positively. Adjusted EBITDA rose by 3% to €946 million.
Smart materials: Sales improved by 23% to €4.83 billion. The increase resulted from significantly higher selling prices from the passing on of higher raw material costs, as well as positive currency effects. Volumes sold were stable. Sales of both inorganic products and polymers increased thanks to higher selling prices, with volumes remaining virtually unchanged. Adjusted EBITDA rose by 5% to €684 million.
Performance materials: Sales increased 26% to €3.66 billion. Significantly higher prices and positive currency effects contributed to the increase, while volumes declined noticeably. Business with products from the C4 Verbund saw declining volumes, while revenue increased because of improved selling prices. The alcoholates business benefited from necessary price increases. Sales of superabsorbents also increased, additionally benefiting from improved market conditions. Adjusted EBITDA rose by 29% to €409 million.
For more information, visit: https://www.evonik.com/.
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