Evonik Prepares for Challenging Times as Profit Slump Last Fiscal Year Signals Fundamental Change for CEO Christian Kullmann; Essen-based Specialty Chemicals Group Must Respond to Industry Crisis with Announced Drastic Job Cuts—Plans to Eliminate up to 2,000 of Currently 33,000 Positions by 2026, Including 1,500 in Germany, Particularly Impacting Management, Expected to Yield Savings of 400 Million Euros; Restructuring Due to Significant Declines in Revenue and Profit Last Year, Evonik Anticipates Slower Growth Ahead, Forecasts No Economic Recovery in 2024, Therefore Projects Revenue of 15 to 17 Billion Euros and Adjusted EBITDA of 1.7 to 2 Billion Euros.

Evonik Suffered Significant Losses Last Year Due to Industry Crisis. The Group, which produces amino acids for animal breeding and lipids for vaccines, among other things, earned just under 1.7 billion euros on sales of 15 billion euros, down from 2.5 billion euros the previous year. CEO Christian Kullmann described the past year as difficult due to the many crises worldwide. Nevertheless, he believes Evonik got off with a black eye. Despite the drop in profits, shareholders will receive an unchanged dividend of 1.17 euros per share.

The Market Situation is Not Getting Easier for Evonik, Emphasized Kullmann. The Group Will Therefore Have to Continue to Stick to Its Fundamental Corporate Restructuring. However, Evonik is Not Alone with the Declines. The Entire Chemical Sector is Suffering from High Energy Prices and a Weak Economy. According to the President of the German Chemical Industry Association (VCI), Markus Steilemann, the Industry is in the Midst of a Deep and Long Valley and it is Not Yet Foreseeable How Long it Will Last. Evonik Competitor Covestro, Led by CEO Steilemann, Reported a 20 Percent Decline in Sales Last Year. The Industry Leader BASF Announced a Drop in Profits and Sales for 2023 and Responded with Cost-Cutting Measures and Job Cuts.

Last summer, Evonik had to adjust its annual targets and, like BASF, responded with a cost-cutting program. Now, Evonik is focusing primarily on management and planning to reduce hierarchical levels. Kullmann emphasized that even with minor signs of recovery, the current situation is not a mere economic fluctuation, but a massive change in the economic environment. Therefore, the signs also point to a crisis for Evonik, and the company must prepare for a prolonged dry spell.