At speciality chemicals company Evonik (Essen, Germany; www.evonik.com), sales volumes in the first quarter of 2024 were higher than in the same period of the previous year for the first time in two years. However, this is also likely to have been very low due to the previous declines. 

According to the group, the start to 2024 was better than expected. According to preliminary figures, sales fell by around 5% to EUR 3.8 bn in the first three months, as sales prices fell in the slipstream of lower raw material costs. However, adjusted EBITDA rose by 28% to EUR 522 mn – exceeding analysts’ estimates (analyst consensus Q1: EUR 450 mn). 

Nevertheless, the particularly strong profit growth of the Nutrition & Care division was not equalled by the plastics-related divisions, and among the latter, it was the Performance Materials segment that achieved the highest growth, with an increase in adjusted EBITDA of 15% to EUR 43 mn. After a weak start, the oxo alcohol and plasticisers business benefited from the disruptions in global supply chains. 

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The Specialty Additives division increased its adjusted EBITDA by 10% to EUR 185 mn. This was due to increased sales volumes and the associated higher plant utilisation; customers began to replenish their stocks. A slight decline in raw material prices also supported the growth. 

In contrast, there was no noticeable improvement in Smart Materials. The business unit, which produces high-performance plastics and compounds, among other things, recorded a slight decline in adjusted EBITDA of 3% to EUR 159 mn. 

Evonik expects the economic environment to remain difficult and uncertain. After a good start, however, confidence is growing at the group, which employs more than 33,000 worldwide. It is therefore confirming its targets for the current financial year – EBITDA of between EUR 1.7 bn and EUR 2 bn (2023: EUR 1.66 bn) and sales of between EUR 15 bn and EUR 17 bn (2023: EUR 15.27 bn) are still expected. Evonik is scheduled to publish its final quarterly figures on 8 May.