Evonik Industries reported a robust financial performance for the third quarter of 2024 despite the ongoing economic challenges. The company's overall sales rose 2% to €3.83 billion ($4.04 billion) and EBITDA surged by 19% to €577 million ($608 million), marking a significant improvement over the same period last year (YoY).

Evonik also reported a gratifying spike in their production volume of 5%.

Segment-wise Performance:

• Specialty Additives: Sales rose 2% to €897 million ($945.8 million), driven by higher volumes, particularly in paints and coatings and oil additives. EBITDA improved 20% to €208 million ($219.3 million).

• Nutrition & Care: Sales increased 8% to €996 million ($1.05 billion), benefiting from higher selling prices and volumes in the Animal Nutrition segment. EBITDA soared 53% to €194 million ($204.5 million).

• Smart Materials: Sales remained almost flat at €1,098 million ($1157.8 million), with higher volumes offset by negative currency effects. EBITDA improved 21% to €164 million ($172.9 million).

• Performance Materials: Sales declined 10% to €557 million due to the divestment of the superabsorber business. Excluding this, sales increased. EBITDA was €19 million ($20.03 million).

Strategic Initiatives and Outlook:

Evonik is actively executing its strategic initiatives to enhance profitability and future growth. These include:

• Cost Reduction: The company is on track to achieve €400 million ($421.7 million) in cost savings this year.

• Innovation Focus: Evonik is investing in research and development to drive growth in bio-based solutions, energy transition, and the circular economy.

• Portfolio Optimization: The company is divesting non-core businesses to focus on high-margin growth areas.

Despite the uncertain economic environment, the company reaffirmed its full-year 2024 outlook, targeting an adjusted EBITDA of €1.9 billion to €2.2 billion ($2 - $2.32 billion), sales of €15 to €17 billion ($15.8 - $17.9 billion), and a cash conversion rate of around 40%.

Christian Kullmann, Chairman of the Executive Board of Evonik, stated, "We have delivered the third positive quarterly result in a row, which is all the more remarkable given the challenging economic conditions. Our strong team performance and strategic focus have enabled us to achieve these results."

Maike Schuh, Chief Financial Officer of Evonik, added, "Our adjusted EBITDA and free cash flow trends are clearly pointing in the right direction. Our focus on high-margin businesses, cost discipline, and restructuring efforts are driving our success."

Evonik's strong performance in the third quarter demonstrates its resilience and ability to navigate through economic turbulence. The company's strategic initiatives and robust financial position position it well for future growth and value creation.