"Evonik is weathering the crisis," said Christian Kullmann, chairman of the management board. "In the second quarter, we felt the effects of the pandemic. However, the strategic portfolio changes and the implementation of our efficiency programs contributed to the fact that we got through the first half of the year better than initially expected. This is especially true for our strong growth segments."
The two growth segments, Resource Efficiency and Nutrition & Care, showed robust performance in the second quarter and achieved strong EBITDA margins of 20% each. The Performance Materials segment, on the other hand, was hit much harder by the slump in demand as well as suffering from the low oil price. Free cash flow was positive at €96 million.
"In the crisis, we have shown high cash and cost discipline," said Ute Wolf, CFO. "We are starting to see initial signs of recovery in some markets. However, there is still no question of a general economic recovery. The Corona crisis is not yet over."
For the full year 2020 Evonik confirms its outlook from May 7. The company expects sales of between €11.5 billion and €13 billion as well as adjusted EBITDA of between €1.7 billion and €2.1 billion.