Sales rose 4% to €15 billion. The adjusted EBITDA margin climbed to 17.3%, approximately 1% higher than in 2017, taking Evonik a significant step towards its mid-term goal of earning a margin between 18% and 20%.
“Despite substantial external burdens, we delivered on our forecast for 2018,” said Christian Kullmann, chairman of the executive board of Evonik. “The consistent implementation of our strategy has shown Evonik to be more robust, even in times of a weaker global economy and unusual weather patterns.”
Adjusted net income for the year rose 29% to €1.29 billion, reaching a record level. Evonik generated free cash flow of €672 million.
“We promised a considerably higher free cash flow for 2018 and we have delivered,” CFO Ute Wolf said. “This year we will continue to work on steadily improving our free cash flow.”
With a new sustainability strategy 2020+, Evonik has set itself the goal of reducing its greenhouse gas emissions by 50% by 2025, using 2008 as a reference year
- Resource Efficiency: Sales at the segment rose 6% to €5.71 billion in 2018. The main driver was higher selling prices, partly due to the passing on of higher raw-materials costs, and the inclusion of the silica business of J.M. Huber acquired in September 2017. Demand for coating additives as well as for polyamide 12 from the auto and 3D-printing industries boosted sales at the segment. Adjusted EBITDA at Resource Efficiency increased 10% to €1.29 billion;
- Nutrition & Care: Annual sales at the segment rose 3% to €4.65 billion as rising demand worldwide led to higher volumes and selling prices. The segment’s adjusted EBITDA rose 8% to €810 million;
- Performance Materials: Sales for the year rose 6% to €3.98 billion at Performance Materials, mainly because of significantly higher selling prices. The methacrylates business developed very well on continuing good demand, especially from the coatings and auto industries, as well as tight market supply. In the second half of the year, low water levels in the Rhine River limited the transport of raw materials and goods and led to higher logistics costs. Adjusted EBITDA at the segment increased 2% to €670 million.