Evonik’s financial performance improved slightly in the second quarter

Recently, Evonik released the preliminary financial data report for the second quarter of 2023. According to the report, Evonik's adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the second quarter are expected to be 430 million to 450 million euros, a slight improvement from the 409 million euros in the first quarter. Sales in the second quarter are expected to be close to 4 billion euros. Volumes were low compared to the previous quarter, while selling prices remained stable, especially in the Specialty Chemicals business.

"Although we saw signs of business recovery in the first quarter, the level of recovery in May and June was much weaker than we expected. We have taken cost control measures to prevent Earnings are down significantly, but we are still feeling the effects of the global economic slowdown.” As early as the second half of 2022, Evonik began implementing cost control programs to secure earnings. The group plans to achieve a cost reduction target of 250 million euros this year through measures such as not filling vacancies, reducing external services and travel. Relevant results will be further revealed in the second half of this year.

In addition, Evonik now expects adjusted EBITDA in the range of 1.6 billion to 1.8 billion euros for the full year 2023 due to continued weak demand and no signs of recovery in the second half of the year. Previously, the group expected adjusted EBITDA to be between 2.1 billion and 2.4 billion euros. Sales are expected to be between 14 billion and 16 billion euros, compared with previous expectations of 17 billion to 19 billion euros. Evonik still plans to increase its cash conversion rate to around 40 percent this year. However, due to the sluggish operating performance, the absolute growth target of free cash flow set at the beginning of the year will not be achieved.

Evonik will publish its full second-quarter results on August 10, 2023.