Evonik 2022 sales surge, hit a 10-year high!

On March 2, Evonik released full-year financial results for 2022, saying it met its targets on schedule and delivered solid earnings in a difficult environment. Evonik's annual sales increased significantly in 2022, with annual sales of 18.5 billion Euros, 24% higher than 2021; Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was the highest since 2012 at 2.49 billion euros, up 4% from 2021; Free cash flow of €785 million, cash conversion rate of 35%; Adjusted net revenue for the full year was €1.05 billion, up 7% from 2021.

Special additives business unit

In 2022, sales increased by 13% to EUR4.18 billion, and the overall business growth was solid. This was primarily due to the successful passing on of higher raw material costs, significant increases in selling prices, and the positive impact of exchange rates. Sales of polyurethane foam additives for the consumer durables and automotive industries increased due to higher prices. There were also positive developments in products used in the construction and coatings industries and in renewable energy applications. Adjusted EBITDA for the specialty additives segment rose 3 percent to 946 million euros.

Nutrition and Consumer Chemicals business unit

Sales rose 19% to 4.24 billion euros in 2022. The increase was primarily due to significantly higher selling prices offsetting higher costs, as well as positive currency effects. There has been a decline in sales. Sales of essential amino acids have increased significantly thanks to higher prices. Product sales declined due to fluctuating demand in Asia and China's epidemic prevention and control policies. In the animal feed sector, Evonik implemented inventory reduction measures globally, resulting in lower selling prices, despite high raw material costs. Sales of health and beauty care products rose sharply, helped by strong demand for cosmetic active ingredients. Adjusted EBITDA for the nutrition and consumer chemicals segment fell 6 per cent to €677 million.

Smart materials business unit

Sales rose 23% to 4.83 billion euros in 2022. This increase was primarily attributable to significant price increases resulting from higher raw material costs, as well as positive currency effects. Sales have held steady. Sales volumes were essentially unchanged, with sales of inorganic materials and polymers both increasing due to significantly higher selling prices. Adjusted EBITDA for the smart materials segment rose 5 percent to 684 million euros.

Functional materials business unit

Sales rose 26% to 3.66 billion euros in 2022. The increase was also due to significant price increases and positive currency effects. Sales are down significantly. Sales of carbon 4 products declined, but revenues increased due to higher prices. Alcoholics business implemented the necessary price increase measures, business development is good. In addition, sales of superabsorbent increased thanks to improved market conditions. Adjusted EBITDA for the functional materials segment increased 29 percent to 409 million euros.