NOTE B15 Advanced Formulations
- Index
- 14 NOTE B14 Advanced Materials
- 15 NOTE B15 Advanced Formulations
- 16 NOTE B16 Performance Chemicals
- 17 NOTE B17 Corporate & Business Services
in € million |
2017 |
2016 |
% yoy |
|||||
|
||||||||
Net sales |
2,966 |
2,668 |
11% |
|||||
Novecare |
1,937 |
1,663 |
16% |
|||||
Technology Solutions |
662 |
656 |
1.0% |
|||||
Aroma Performance |
366 |
350 |
4.7% |
|||||
EBITDA |
524 |
484 |
8.1% |
|||||
EBITDA margin |
18% |
18% |
(0.5)pp |
|||||
EBIT |
374 |
327 |
14% |
|||||
EBIT margin |
21% |
19% |
0.4pp |
|||||
CFROI(1) |
6.7% |
6.1% |
0.7pp |
|||||
Capex from continuing operations |
(130) |
(134) |
3.0% |
|||||
Cash conversion |
75% |
72% |
2.8pp |
|||||
Research & innovation(1) |
(85) |
(87) |
2.1% |
|||||
Research & innovation intensity(1) |
2.9% |
3.2% |
(0.4)pp |
|||||
Net sales evolution
FY yoy net sales bridge (in €million)
Net sales rose 11% to €2,966 million, thanks to volume growth of 13%, which forex effects on conversion eroded by -2%. The 16% sales surge in Novecare was triggered by the recovery of the North American shale oil and gas market and a gradual improvement in the product mix throughout the year. This was supplemented by moderate demand growth in agro, coatings, and industrial applications. Sales in Technology Solutions were up slightly, tempered by the scope decrease following the sale of the formulated resins business in June 2017. While volumes of sales to the mining sector were mostly stable over the year, demand rose significantly for phosphine specialties as underlying demand was offset by production issues at customers’ mines. Aroma Performance sales grew 5%, with the new vanillin plant in China ramping up, but competitive price pressure continued in the region.