Evonik weathers the pandemic
Thursday, August 13, 2020
Against the backdrop of the worldwide recession triggered by the COVID-19 pandemic, Evonik is getting through the crisis well. Nevertheless, sales and earnings in the second quarter decreased compared to the previous year due to significantly weaker demand in some markets. Company sales fell by 14% to €2.83 billion, while adjusted earnings before interest, tax, depreciation and amortization (EBITDA) fell 19% to €456 million.
“Evonik is weathering the crisis,” said Christian Kullmann, chairman of the management board. “In the second quarter, we felt the effects of the pandemic. However, the strategic portfolio changes and the implementation of our efficiency programs contributed to the fact that we got through the first half of the year better than initially expected. This is especially true for our strong growth segments.”
The two growth segments Resource Efficiency and Nutrition & Care showed robust performance in the second quarter and achieved strong EBITDA margins of 20% each. The Performance Materials segment, on the other hand, was hit much harder by the slump in demand as well as suffering from the low oil price.
The Nutrition & Care segment stayed robust. Sales fell by only four percent to €1.09 billion in the second quarter. Adjusted EBITDA even rose by 14% to €217 million. One of the markets that supported this growth was the essential amino acids for animal nutrition that benefited from higher selling prices and increased demand.
“In the crisis, we have shown high cash and cost discipline,” said Ute Wolf, chief financial officer. “We are starting to see initial signs of recovery in some markets. However, there is still no question of a general economic recovery. The corona crisis is not yet over.”
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