in € million

 

FY 2018

 

FY 2017

 

% yoy

Net sales

 

3,057

 

2,966

 

+3.1%

Novecare

 

2,000

 

1,937

 

+3.2%

Technology Solutions

 

643

 

662

 

(2.9)%

Aroma Performance

 

414

 

366

 

+13%

EBITDA

 

521

 

524

 

(0.4)%

EBITDA margin

 

17.1%

 

17.7%

 

(0.6)pp

EBIT

 

381

 

374

 

+2.1%

EBIT margin

 

12.5%

 

12.6%

 

(0.1)%

Capex from continuing operations

 

(148)

 

(130)

 

(14)%

Cash conversion

 

71.6%

 

75.2%

 

(3.6)pp

CFROI

 

6.9%

 

6.7%

 

+0.1pp

Research & innovation

 

(97)

 

(85)

 

(14)%

Research & innovation intensity

 

3.2%

 

2.9%

 

+0.3pp

Net sales evolution
FY yoy net sales bridge (in €million)

Advanced Formulations – Net sales evolution (bar chart)

Net sales were up +3.1% year on year driven by strong volumes and increased prices. Sales grew organically by +9.0% in 2018, excluding the impact from forex conversion and scope reduction.

In Novecare, both volumes and prices grew across multiple end-markets. The strong growth of oil and gas in the first half year of the year reduced significantly in the fourth quarter as activity levels in the shale oil & gas stimulation market in North America declined rapidly, weighing on both volumes and margins. Other end-markets including coatings, agro, and home & personal care, showed robust growth throughout the year.

Technology Solutions delivered solid volume growth in the year, with new mine wins and strong demand in phosphorus specialties and polymer additives driving volume growth.

In Aroma Performance, volumes and prices were up significantly throughout the period, both in polymerization inhibitors and in vanillin ingredients, which benefited from the launch of new natural vanillin products.

Underlying EBITDA declined by -0.4%, but grew +8.1% organically, excluding scope effects and forex conversion, as a result of the volume and price increases across businesses. These increases more than compensated for higher raw material costs and slightly higher fixed costs. As a reminder, 2017 benefited from a one-time €17 million indemnity received for the loss of some assets in China. As a result, the underlying EBITDA margin was slightly reduced by -0.6 percentage point to 17% for the year.