Strong performance in the Paint Stores Group led the company's results, maintaining expectations, however the Consumer Brands Group continues to be impacted by lower DIY demand.
"As we execute on various enterprise growth initiatives and capitalize on our technical and service capabilities, we expect positive momentum in driving improved sales volumes will broaden within our business portfolio," said company Chairman and CEO, Tim Knavish.
Evonik delivered another strong quarter, exceeding analysts' expectations. Based on preliminary and unaudited figures, the company achieved an adjusted EBITDA of €578 million in the second quarter, 29% above the prior-year.
First quarter results reveal that consolidated and net sales are both down, attributed mostly to lower demand. In addition, the decorative business saw a revenue decline due to price cuts, according to the company.
The company will issue its second quarter 2024 earnings results on Wednesday, July 31, 2024 at approximately 7:00 a.m. ET (6:00 a.m. CT). The call will be hosted by Scott R. Behrens, President and Chief Executive Officer, and Luis E. Rojo, Vice President and Chief Financial Officer.
The company will release its financial results for the fiscal 2024 fourth quarter and fiscal year before the stock market opens on Thursday, July 25, 2024.
While the company saw a decline in revenue over sales generated in the same quarter of the previous year, the gross profit margin of 15.3%, was similar to Q1/2023.
The company was able to increase its sales volumes, in particular within the EMLA and APAC regions, with the former benefiting from higher plant availability. Due to lower average selling prices associated with lower raw material prices being passed on to customers, sales fell slightly.
The court is expected to appoint an insolvency administrator to examine the possibility of continuing business operations and possible options for restructuring and/or selling the business in due course.
