Sales increased by 7% to 3.9 billion euros
Adjusted EBITDA increased by 16% to 742 million euros.
Outlook for the 2018 fiscal year is improving: Estimated EBITDA is expected to reach 2.6 billion to 2.65 billion euros.
In the second quarter of 2018, Evonik's adjusted EBITDA increased to 742 million euros (previous year: 640 million euros). All three chemical sectors with outstanding business development contributed: Compared with the same period last year, All three sectors have improved their adjusted EBITDA and EBITDA margins.
Due to higher sales volume and higher selling prices, sales increased to 3.9 billion euros in the second quarter (previous year: 3.6 billion euros), adjusted net income was 354 million euros, corresponding to adjusted earnings per share 0.76 euros. Adjusted EBITDA margin rose to 19.2%, up 1.5 percentage points from the same period last year.
Adjusted EBITDA and adjusted earnings per share were significantly higher than current market expectations (analyst consensus: 691 million euros, 0.70 euros per share). Therefore, Evonik is obligated to publish preliminary data, the organization will be August 2, 2018 The final result is announced on the day.
Executive Committee Chairman, Christian Kullmann said, 'We will continue to implement our strategy, and its effectiveness is increasingly reflected in our business development. In addition to the continued strong demand for growth momentum, our strong quarterly results also prove our administration. And initial signs of success in sales efficiency projects.
In the first half of this year, Evonik's sales were 7.5 billion euros and adjusted EBITDA was 1.4 billion euros. Compared with the first half of 2017, sales increased by 4%, adjusted EBITDA increased by 15%. Adjusted EBITDA margin From 17.0 to 18.8%.
Evonik's free cash flow development is on track: compared to last year (2017 first half: -135 million), free cash flow in the first half of 2018 is positive.
Improve the outlook
Based on its excellent performance in the first half of this year, Evonik raised its outlook for FY 2018 and expects adjusted EBITDA to reach €2.6 billion to €26.5. The company had previously expected adjusted EBITDA to be between €2.4 billion and €26.
The outlook for free cash flow has also improved, and Evonik expects free cash flow in FY 2018 to be significantly higher than the previous year. So far, the company's expected free cash flow is slightly higher than 2017.
Development in various fields
The resource efficiency sector continued its extremely stable and profitable development in the second quarter. Sales increased by 8% to 1.5 billion euros (previous year: 1.4 billion euros), while adjusted earnings increased 15% year-on-year to 3.66. €100 million. Adjusted EBITDA margins in this sector increased by 1.4 percentage points to 24.7%. Overall, the sector benefited from high capacity utilization and continued high demand for silica, high performance polymers, including For lightweight design, as well as coatings for the additive line of water, environmentally friendly paints and coatings additives for the coating industry.
Sales in the nutrition and health sector were 1.2 billion euros, slightly higher than the same period last year (previous year: 1.2 billion euros). Adjusted income rose 10% to 222 million euros (previous year: 201 million euros). The sector significantly increased its adjusted EBITDA margin to 18.7% (17.3% in the same quarter of the same period last year). The focus of this goal is on high-margin products, successfully passing on increased raw material costs, and cutting costs strictly. Especially in animal nutrition and baby care. In the animal nutrition amino acid business, the market environment remained strong during the reporting quarter. Sales showed an upward trend, higher than the same period of the previous year. The sales price continued to maintain a stable trend at the beginning of the year. Personal care has also seen significant sales growth, thanks to improved product mix sales growth. The health and polyurethane foam additives business continues to grow aggressively.
Sales in the high-performance materials sector reached 1 billion euros in the second quarter, 13% higher than the previous year, benefiting from the high sales price of the methacrylate business and the environmental improvement of the performance intermediate market. EBITDA increased by 196 million euros (previous year: 168 million euros). The high-performance materials sector increased the adjusted EBITDA margin to 19.1% (previous year: 18.5%).