In This Article:
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Sales: EUR14.2 billion, slightly down by 1.4% year on year.
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Free Operating Cash Flow: EUR89 million, at the upper end of guidance.
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EBITDA: EUR1.1 billion, stable compared to the prior year.
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Net Income: Negative at minus EUR266 million.
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Volume Increase: 7.4% year on year.
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Price Decline: 8% or EUR1.16 billion.
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FX Effect: Negative 0.8% or EUR120 million.
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Solutions & Specialties Sales: Decreased by 3.6% to EUR7 billion.
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Solutions & Specialties EBITDA: Down by 9.4% to EUR740 million.
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Performance Materials Volume Increase: 11.9%.
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Performance Materials EBITDA: Declined by 1.2% to EUR569 million.
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CapEx: EUR789 million, in line with guidance.
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Net Debt-to-EBITDA Ratio: Stable at 2.7 times.
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Dividend: Zero, due to negative net income.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Covestro AG (COVTY) achieved a positive free operating cash flow of EUR89 million, aligning with their guidance.
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The company's transformation program, STRONG, yielded savings of EUR119 million, contributing to operational efficiency.
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Covestro AG (COVTY) reduced its greenhouse gas emissions by 17% and increased its renewable electricity share from 16% to 22%.
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The company is investing in sustainable growth, including a significant expansion in Hebron, Ohio, to meet the demand for specialized polycarbonate materials.
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Covestro AG (COVTY) reported a 7.4% increase in global sales volume, driven by improved asset availability and demand in APAC.
Negative Points
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Sales for fiscal year 2024 slightly decreased by 1.4% to EUR14.2 billion due to lower prices and unfavorable FX effects.
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EBITDA was impacted by a negative pricing delta of EUR514 million, despite a volume rebound.
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The company reported a net income loss of EUR266 million, resulting in a negative earnings per share of EUR1.41.
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Covestro AG (COVTY) faced challenges in the automotive sector, with a decline in growth in the second half of 2024.
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The company anticipates restructuring costs of around EUR200 million in 2025, impacting reported EBITDA.
Q & A Highlights
Q: Could you provide insights into the order book development and how China has emerged post-New Year celebrations? A: The end market growth for 2025 shows a positive trend compared to 2024, but this is expected more in the latter part of the year. Currently, there are some positive signs, but not in a structural manner. China returned reasonably well post-New Year, but the economic boost is still pending, awaiting governmental decisions.