Evonik Industries AG fully achieved its earnings forecast in 2016. With adjusted EBITDA of €2.165bn, earnings were at the upper end of the range of €2bn to €2.2bn. While volumes grew by a 3 solid per cent, sales declined 6 per cent to €12.7bn as a result of lower prices.
“At 17 per cent, our adjusted EBITDA margin remains good,” said Klaus Engel, Chairman of the Executive Board. “The successful acquisition of the Air Products specialty additives business and the planned acquisition of Huber’s silica business provide additional growth impetus and open up further perspectives for our attractive portfolio.”
At the Annual Shareholders’ Meeting on May 23, the Executive Board and Supervisory Board will be proposing a dividend of €1.15 per share. Based on the closing share price at year-end 2016, that gives a dividend yield of 4.1 per cent, positioning Evonik among the top chemical companies. “The high free cash flow of €810m enables us to make this level of payout without impairing our ambitious growth targets,” said Engel.
Following an exceptionally strong performance in the previous year, the earnings situation normalised in 2016. Evonik was only partially able to compensate for the low global economic momentum, the low oil price, and the normalisation of prices for animal nutrition products. Adjusted EBITDA was therefore 12 per cent below the previous year’s outstanding level. Adjusted net income also dropped year-on-year to €930m.