Profit exceeds expectations! Evonik releases preliminary financial data for the third quarter

Evonik Group, the world's leading specialty chemicals company, released its 2020 third-quarter performance report.
The adjusted EBITDA (EBITDA) of the group reached 519 million euros, which was significantly higher than market expectations (analyst consensus forecast: 471 million euros).
The adjusted EBITDA in the third quarter showed a trend of continuous improvement, which was only 4% lower than the same period last year.
In the second quarter, adjusted EBITDA was still 19% lower than the same period last year.
Sales in the third quarter were 2.
92 billion euros (the same period last year: 3.
23 billion euros).
It is reported that in the face of the global economic recession caused by the new crown epidemic, Evonik has risen to difficulties and maintained stable operations.
However, due to apparently weak demand in some markets, the company's sales and earnings in the second quarter fell year-on-year.
Sales were 2.
83 billion euros, down 14%; adjusted profit before interest, tax, interest, depreciation and amortization was 456 million euros, down 19%.
Although the global spread of the new crown epidemic has slowed economic growth, Evonik Industries has made a solid start in 2020.
Among them, the two major growth business segments, namely the resource efficiency business segment and the nutrition and consumer chemicals business segment, are on track in a challenging environment.
Adjusted net income in the second quarter fell 30% year-on-year to 160 million euros.
Adjusted earnings per share fell from 0.
49 euros to 0.
34 euros.
Evonik continues to maintain an extremely healthy free cash flow of 96 million euros.
Lower bonuses and tax reductions offset the decline in operating profit and the increase in net working capital.
Although facing challenges in logistics and production, thanks to its global network, all Evonik's supply chains remain intact.
Except for some smaller production bases that are instructed by the government to stop production, global production is hardly subject to any restrictions.
Starting from the third quarter of 2020, Evonik will release financial reports in accordance with the new business unit structure.
Since the first nine months of this year, the three growth business units of specialty additives, nutrition and consumer chemicals, and smart materials have all demonstrated resilience to the crisis and achieved stable EBITDA and price performance.
In the third quarter of 2020, the Group's overall business performance has improved significantly from month to month.
Thanks to the business performance of the specialty additives and smart materials business unit, this trend became more pronounced in September and achieved higher-than-expected performance.
In the third quarter, thanks to stable prices, the specialty additives business segment maintained strong resilience and achieved a high profit margin of 27.
5%.
The inorganic materials (such as hydrogen peroxide, catalysts) business of the smart materials business segment has developed steadily, and the business in the automotive-related industries has also continued to improve.
In view of this, Evonik released its full-year forecast in May due to the epidemic, and confirmed it in the second quarter earnings report in August.
Taking into account the continuous improvement of the group's performance in the third quarter and the stable performance of the growth business unit, it is now possible to further clarify the full-year EBITDA expectations and once again raise the free cash flow expectations.
Evonik will announce the final results of the third quarter on November 3, 2020, and hold a conference call with analysts and investors.