The start into 2024 was better than expected for Evonik. Based on preliminary and unaudited figures, Evonik achieved an adjusted EBITDA of €522 million in the first quarter of 2024 (Q1 2023: €409 million), well above market expectations (Vara Research analyst consensus as of March 26, 2024: €450 million).

Adjusted EBITDA increased by 28% compared to the previous year’s quarter. The Specialty Additives and Nutrition & Care divisions recorded the strongest growth.

The upturn was driven by higher sales volumes: Following seven quarters of declines, volumes were above the previous year’s level. In addition to a slight upturn in end customer demand, restocking in light of low inventory levels at customers also contributed to the higher volumes. However, there is no broad-based recovery in demand across the entire portfolio visible yet.

According to preliminary figures, Evonik’s sales amounted to approximately €3.8 billion in the first quarter of 2024, around 5% below the previous year’s figure (Q1 2023: €4 billion). This was mainly due to declining sales prices as a result of lower raw material costs.

The consistent cost-cutting measures led to a further reduction in expenses. This had a positive impact on the adjusted EBITDA margin, which improved by more than 3%age points to 13.7% (Q1 2023: 10.2%) year-on-year.

However, the economic environment remains difficult and uncertain. At the same time, the good start into the year gives Evonik confidence that the company can achieve its targets for the fiscal year: Evonik continues to expect an adjusted EBITDA in the range of €1.7 billion to €2.0 billion and sales of between €15 billion and €17 billion in 2024.