Evonik releases third-quarter 2021 financial report: full-year profit is expected to reach the upper limit of expectations

• Third-quarter sales up 33% and Adjusted EBITDA up 24%
• Full-year Adjusted EBITDA expected to be around EUR 2.
4 billion
• Free cash flow expected to improve to around EUR 1 billion in 2021

After a strong third quarter, Evonik issues more precise full-year earnings guidance: Evonik now expects adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of around 2.
4 billion euros in 2021, reaching the mid-year Expected (Adjusted EBITDA: EUR 2.
3 billion to EUR 2.
4 billion) cap
.
Full-year sales are also expected to be capped at 14.
5 billion euros
.
Previously, Evonik expected full-year sales to be between 13 billion euros and 14.
5 billion euros
.

"We continued our strong growth momentum in the third quarter
.
All four chemical business units benefited from increased market demand
.
In addition, we were able to compensate for raw materials, Rising energy and logistics costs
.
”

In the third quarter of 2021, Evonik's adjusted EBITDA increased by 24% year-on-year to EUR 645 million
.
Profitability in the quarter compared to the second quarter, despite one-time costs of approximately EUR 30 million due to higher bonus accruals, downtime for facility maintenance, and lost sales due to damaged supply chains and shortages of raw materials Keep it steady
.

In the third quarter of 2021, Evonik's sales increased by 33% year-on-year to 3.
87 billion euros compared to 2020
.
All business segments benefited from continued, positive market demand
.
Adjusted net income rose 45 percent to EUR 269 million
.
Adjusted earnings per share increased from EUR 0.
40 to EUR 0.
58
.

Free cash flow in the third quarter increased by 68% to EUR 524 million, thanks to improved performance
.
As a result, free cash flow for the first nine months of 2021 reached a record 937 million euros
.

CFO Ute Wolf said: "We expect free cash flow for the full year of 2021 to be approximately EUR 1 billion
.
We are proud that we were able to generate cash above our estimates
.
Currently, we expect a full-year cash conversion rate of That 's up from last year's good 40%
.
"

business unit performance

Specialty Additives : Sales in the third quarter increased by 20 percent to EUR 934 million
.
Sales of products used in the construction and coatings industries as well as in the renewable energy market increased significantly in all regions, thanks to a strong increase in market demand
.
Strong sales growth was driven by higher demand for polyurethane foam additives used in the automotive industry, consumer durables such as mattresses and refrigerators
.
Disruptions in the global supply chain and related shortages of raw materials had an impact on sales growth in this business segment
.
Adjusted EBITDA for the Specialty Additives business unit rose 5 percent to EUR 224 million in the third quarter
.

Nutrition and Consumer Chemicals : Sales in the third quarter increased by 30 percent to EUR 931 million
.
Global sales of essential amino acids for animal nutrition increased significantly, thanks to higher market demand and higher selling prices
.
Markets related to medical and health care and care products have strong demand, and the sales of active ingredients used in cosmetics have performed particularly well
.
In pharmaceutical applications, sales of liposomes for mRNA vaccines have increased significantly
.
Adjusted EBITDA in the Nutrition & Consumer Chemicals business unit increased by 37 percent to EUR 192 million
.

Smart Materials : Sales in the third quarter rose by 27 percent to EUR 1 billion
.
The demand for high-performance polymers in the automotive industry has increased significantly
.
Market demand for polyamide 12 powders for 3D printing and membrane technology for efficient gas handling is strong
.
Globally, the silica business for the tire industry is also in high demand
.
In the specialty business and the traditional hydrogen peroxide business, active oxide products maintained a good sales growth trend
.
Porocel, which Evonik acquired in November 2020, also had a positive impact on the catalyst business
.
Adjusted EBITDA for the Smart Materials business unit increased by 29 percent to EUR 177 million
.

Performance Materials : Sales in the third quarter increased by 77 percent to EUR 784 million
.
Benefiting from the substantial increase in market demand and selling price, the sales of carbon 4 products increased significantly
.
The superabsorbent business continued to be impacted by difficult market conditions
.
Adjusted EBITDA for the Performance Materials business unit increased to EUR 97 million from EUR 28 million in the same period in 2020
.