Evonik has reported a strong sales performance from its Nutrition & Care division in Q3 2022.
The division’s sales increased 14% to €1.06bn in the quarter.
This, however, was due to significantly higher selling prices and positive currency effects, the German chemicals giant said.
At €148m, the division’s adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) was down 23% on the prior year period.
That said, Evonik credited the cosmetics industry’s demand for active ingredients with expanding sales in the Nutrition & Care sub-division of Care Solutions, with the wider category let down by reduced volumes in animal feed.
Evonik’s overall Q3 revenues increased 26% year-on-year to €4.88bn, again largely due to price increases.
EBITDA for the Essen-based business declined 5% to €615m.
Evonik confirmed its full year 2022 outlook for adjusted EBITDA as between €2.5bn and €2.6bn, and sales in the current year are now expected to be €18.5bn.
“Despite the increasingly difficult environment, we remain confident of achieving our outlook for the full year,” said Christian Kullmann, Chairman of Evonik’s Executive Board.
“At the same time, we are preparing for a recession in the coming year.”
Measures cited include restrictions on business travel and trade shows, cutting down on the use of external consultants and disciplined hiring.
The company anticipates this will reduce costs within the three-digit million-euro range next year.