On March 3, 2020, the expected target was achieved: Adjusted EBITDA remained stable at 2.153 billion euros, and free cash flow significantly improved.
Outlook for 2020:Adjusted EBITDA remains between 2 billion and 2.3 billion euros, with a slight increase in free cash flow
Implementing a new organizational structure based on corporate strategic adjustments
Despite the continuous deterioration of the global economic situation, Evonik Still maintain stable profitability. The adjusted EBITDA for 2019 was 2.153 billion euros, compared to 2.15 billion euros in the previous year. The sales revenue in 2019 was 13.1 billion euros, a slight decrease of 1% compared to last year.
In 2019, we achieved our expected goals. Despite the much more difficult market environment compared to the previous year, we still maintained stable profitability, "said Chairman Kuliman. Evonik represents reliability and stability
At the annual shareholders' meeting scheduled for May 27, 2020, the executive board and supervisory board of Evonik will propose to set the dividend at 1.15 euros per share. Based on the closing price at the end of 2019, the dividend yield of Evonik will reach 4.2%, ranking among the top chemical companies in the world.
Evonik completed the sale of its methyl methacrylate business in July 2019, which more than doubled its net income this year to 2.1 billion euros.
Excluding taxes arising from the divestment of its methyl methacrylate business, Evonik's free cash flow reached 717 million euros. There has been a significant increase compared to last year.
Ute Wolf, Chief Financial Officer of Evonik, said, "The measures we have implemented in the past few years to increase our free cash flow have been effective. This year, our goal is to further increase our free cash flow
In 2020, Evonik expects its specialty chemicals business to achieve sales growth. However, the weak global economic environment is not conducive to the commodity oriented business. Based on this, the company expects sales to remain stable in 2020, with adjusted EBITDA ranging from 2 billion to 2.3 billion euros.
Evonik has always been committed to implementing its corporate strategy. At present, the company is adjusting its organizational structure to adapt to its strategic growth engine defined two years ago. On July 1, 2020, Evonik's current business segments will be reorganized into four major business units: specialty additives, nutrition and care, smart materials, and functional materials. These four departments are more balanced in terms of both scale and business types. They will each play a clear strategic role, face a common end market, share a unified standard technology platform, and be easier to manage. At that time, the four major business departments will also have their own streamlined and efficient organizational structures. At the same time, Evonik has defined its mission as a company - to transcend chemical boundaries and lead a better future.
Kuliman stated:This mission answers what we are‘ who‘， And what we strive for. It will become our compass on the way forward
