Berlin — German specialty chemicals company Evonik Industries on Monday reported higher earnings in the first quarter, even as sales edged down as higher sales volume was offset by weak prices.
The company also confirmed its fiscal 2025 guidance despite increasing economic uncertainties.
In the first quarter, net income amounted to €233 million ($259 million), 49% higher than the €156 million recorded in the same period last year.
Adjusted net income was €275 million, compared to €197 million a year ago.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) moved up 7% to €560 million, while the adjusted EBITDA margin rose 1 percentage point to 14.8%.
The improvement was driven by higher sales volumes and better than expected prices in the Animal Nutrition division, as well as continued cost discipline.
Revenue, meanwhile, dropped 1% to €3.777 billion from €3.796 billion a year earlier.
Evonik increased sales volumes by 2% in the first quarter, while prices fell by 2%. Free cash flow rose 53% year-over-year to €195 million.
Looking ahead to fiscal 2025, Evonik continues to expect adjusted EBITDA of between €2.0 billion and €2.3 billion, following its good start to the year.
The company noted that the better-than-expected pricing trends in the Animal Nutrition business in the first quarter are expected to continue at least for the second quarter.
"We had a good start to the year," chief executive Christian Kullmann said. "However, the combination of a looming global trade war and armed conflicts makes planning for the future more uncertain than ever. There is a risk of a further economic slowdown, particularly in the second half of the year."
Capital expenditures are expected to remain roughly constant at around €850 million. Evonik plans to provide more information on strategic direction and targets during its Capital Markets Day on May 22.
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