Covestro AG

1COV

Equity

ISIN DE0006062144 / Valor 29178035

Xetra (2025-03-14)

EUR 58.10-1.09%

Covestro AG
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About company

Covestro AG is a leading global supplier in the polymer materials sector, known for its innovative approach and diverse product range. The company specializes in producing high-tech polymers used across various industries, including the manufacturing of specialty films for ID cards. With a strong focus on the circular economy, Covestro is committed to driving the transformation towards more sustainable and climate-neutral practices within its field. The company's business is divided into two main segments: 'Performance Materials' and 'Solutions & Specialties', encompassing seven business entities that cater to different market needs and customer demands. These segments cover a wide array of products, from standard polycarbonates and urethane components to sophisticated products like engineering plastics, coatings, adhesives, and elastomers. With 22 production sites worldwide and a workforce of 7,790 employees, Covestro generated €6.3 billion in group sales in 2023, demonstrating its significant role in the polymer industry.

Summarized from source with an LLMView SourceSector: Industrials

Sales Decline

In the fiscal year 2023, Covestro AG experienced a significant decline in group sales, which fell by 20.0% to €14,377 million compared to €17,968 million in the previous year. This decrease was primarily driven by a reduction in selling prices and lower volumes sold, reflecting weak global demand. Additionally, exchange rate movements contributed to the sales decline.

Segment Performance

Both of Covestro AG's business segments reported decreased sales in fiscal 2023. The Performance Materials segment saw a 24.4% drop in sales to €6,876 million, while the Solutions & Specialties segment experienced a 15.1% decline, with sales totaling €7,267 million. These reductions were influenced by the same factors affecting overall group sales.

EBIT and Profitability

Covestro AG's EBIT for fiscal 2023 decreased by 30.3% to €186 million from €267 million in the previous year. The EBIT margin also declined to 1.3% from 1.5%. This reduction in profitability was largely due to lower selling prices and volumes, despite a decrease in the cost of goods sold.

Net Income and Financial Result

The net income attributable to Covestro AG shareholders in fiscal 2023 was a loss of €198 million, compared to a loss of €272 million in the previous year. The financial result improved slightly, with a negative €113 million compared to a negative €137 million in the prior year, mainly due to reduced net interest expenses.

Return on Capital Employed

For fiscal 2023, Covestro AG's Return on Capital Employed (ROCE) was 1.5%, down from 2.0% in the previous year. This was significantly lower than the Weighted Average Cost of Capital (WACC), which increased to 7.6% from 7.0%, indicating a negative ROCE above WACC of -6.1 percentage points.

Summarized from source with an LLMView Source

Key figures

21.1%1Y

24.1%3Y

117%5Y

Performance

18.5%1Y

31.2%3Y

33.4%5Y

Volatility