By Matthias Inverardi and Emma-Victoria Farr
(Reuters) -Evonik Industries' new Chief Financial Officer Maike Schuh said the German chemicals maker has to become more profitable and that the firm is making progress on divestments aimed at boosting profit margins.
"It is clear that from 2024 we have to improve in terms of
profit and return on investment," Schuh said late on Wednesday.
Evonik's adjusted EBITDA margin fell to 13.5% last year, from 15.9% the year before as high energy prices took their toll, falling far short of a target of 18-20% set by CEO Christian Kullmann when he took office in 2017.
Schuh, who replaced CFO Ute Wolf in April, sees a wide range of potential bidders for the firm's superabsorbents division, including trade firms and financial investors.
Evonik put its superabsorbents business, which makes materials for diapers and hygiene products, on sale two years ago.
Teasers for the sale are in circulation, with Credit Suisse (SIX:CSGN) advising, Schuh confirmed. The mandate was awarded in summer last year, according to separate sources familiar with the matter. From May 1, the process will be run by UBS, after it took over its Swiss rival, Schuh said.
Schuh expects to sign the deal this year. The unit, which recently reported annual sales of around 900 million euros ($987.39 million), is anticipated to generate a valuation of several hundred million euros, the sources said.
The new CFO also hopes for clarity this year on the separate planned sale of Evonik's Performance Materials unit, known internally as C4 Group. The division generates annual sales of around two billion euros ($2.19 billion), with core earnings around 200 million euros, Schuh said.
Evonik is working with an adviser to sell the unit, which produces additives for fuel and rubber, and could reach around one billion euros ($1.10 billion) in a sale, the sources said.
($1 = 0.9115 euros)