Methionine price declines to level out: Evonik

© istock/ermetico72

Evonik said lower prices in its animal nutrition business was one of the main reason for a 13% drop in fourth quarter earnings in 2016.

The average selling prices for methionine were lower than 2015, said the German chemical company.

The amino acid producer predicted that price declines, though, would level out early in 2017.

Q4 2016 earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for one-offs, declined to €437m ($460m).

Adjusted net income for FY2016 decreased 18% to €930m, said Evonik. 

Its adjusted FY2016 EBITDA was €2.165bn, a 12% reduction from the previous year’s results. Volumes grew by 3% in 2016 but sales dipped 6% to €12.7bn.

Animal nutrition volume hike

Ute Wolf, Evonik CFO, speaking on a call with analysts, said Q4 volume growth in animal nutrition was above its nutrition and care segment average.

“For methionine, we also expect sequentially slightly lower volumes in Q1 [2017] after this strong Q4,” she added.

In Q1, the CFO said the company expects continued strong development in the majority of its nutrition and care businesses.

“Overall, we are convinced that the underlying growth drivers and the supply-demand trends of the industry are well in check,” said Wolf.

In terms of outlook, from the macroeconomic perspective, the CFO said Evonik expects slightly more positive dynamics coupled with increased uncertainties:

“This [perspective] is not only due to specific challenges in various emerging countries - here we expect only Brazil and Russia to come out of recession in 2017 - but [it is] also due to a higher political risk in North America and Europe. In this environment, we are, nonetheless, convinced that our businesses will continue on their successful paths.”

The company forecasts solid earnings growth for 2017 and expects an adjusted EBITDA in the range of €2.2bn to €2.4bn. 

Executive changes

Evonik CEO, Klaus Engel, is to step down after the company’s annual shareholders meeting on 23 May. He has had that position at the Essen headquartered company since 2009.

Current Evonik strategy chief, Christian Kullmann, is to replace Engel as CEO.

Related News

© istock.com

Evonik is now in the probiotics game

© istock/zerbor

Evonik splashes €45m on methionine production technology

© istock

Evonik underlines probiotic ambitions with IPPE launch

© istock

Evonik aims to expand amino acid capabilities through acquisition

© istock.com

Evonik to hike price of its L-threonine additive

The German company plans to invest €100m in start-ups with innovative technologies and in specialized funds as part of its VC activities, with a focus on Europe, the US and Asia. © istock/Tuangtong

Evonik tracking Chinese agtech and animal nutrition innovation

© iStock/Zerbor

Evonik's new lysine plant goes on stream in Brazil

© istock/Dr_Microbe

Probiotics: Evonik forging own path, ends Asian tie-up with Chr. Hansen

© istock.com/archix

Evonik expects a subdued market environment and a decline in 2016 earnings

© istock.com/NicoElNino

Evonik sees profitability gains in sustainable animal nutrition game

© istock.com/chengyuzheng

Shrimp targeted methionine production kicks off at Evonik's Antwerp site

Skretting says R&D breakthrough means salmon industry growth won't be limited by finite fish oil supplies © iStock/phototechno

Skretting gets behind algal oil breakthrough from Evonik and DSM

© istock/VasilySmirnov

‘The full potential of the probiotics market has not yet been fully exploited’

Evonik also reviewed nutrient values of soybean meal from Germany, Italy, Ukraine and Russia © istock/Veresovich

European crop report: wheat protein levels on par with 2015

Related Products

See more related products

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.