Results of Operations

Covestro Group summary income statement

















€ million


€ million




Reference information was not restated, see note 2.1 “Financial reporting standards applied for the first time in the reporting period.”








Cost of goods sold







Selling expenses







Research and development expenses







General administration expenses







Other operating expenses (–) and income (+)














Financial result







Income before income taxes







Income taxes







Income after income taxes







of which attributable to noncontrolling interest







of which attributable to Covestro AG stockholders (net income)







Group sales in the reporting year dropped by 15.1% to €12,412 million (previous year: €14,616 million).

There was a 2.6% decrease in the cost of goods sold to €9,658 million (previous year: €9,918 million) on account of lower raw material prices. The ratio of the cost of goods sold to sales increased to 77.8% (previous year: 67.9%).

Selling expenses were down by 2.0% to €1,380 million (previous year: €1,408 million), yielding a ratio of selling expenses to sales of 11.1% (previous year: 9.6%). Research and development (R&D) expenses of €266 million decreased by 3.6% (previous year: €276 million). As a share of sales, this produced an R&D ratio of 2.1% (previous year: 1.9%). The funds were used mainly for developing new application solutions for our products and improving products and process technologies. The R&D projects are aligned to sustainability aspects.

General administration expenses saw a decrease of 24.2% to €372 million (previous year: €491 million).

A decline in provisions for short-term variable compensation had a positive effect on all functional costs.

Other operating income exceeded other operating expenses by €116 million (previous year: €57 million). This included items such as a gain from the sale of the European systems house business in the fourth quarter of 2019 amounting to €34 million, insurance reimbursements of €63 million, and a gain of €19 million from the remeasurement of shares of Japan-based DIC Covestro Polymer Ltd. previously accounted for under the equity method.

In the reporting period, amounted to €852 million, down 67.0% (previous year: €2,580 million). As a result, the EBIT margin decreased to 6.9% (previous year: 17.7%).

In fiscal 2019, the financial result was €–91 million (previous year: €–104 million). The key component of the financial result is the net interest expense totaling €–45 million (previous year: €–47 million). A negative effect from the application of  16 in the amount of €21 million is included in net interest expense. Conversely, lower hedging costs had a positive effect on net interest expense. Including the financial result, income before income taxes declined 69.3% to €761 million (previous year: €2,476 million). Due to earnings, the income tax expense dropped by 68.5% to €204 million (previous year: €647 million). After taxes and noncontrolling interests, was down 69.7% and amounted to €552 million (previous year: €1,823 million).

EBIT/earnings before interest and taxes
Income after income taxes plus financial result and income tax expense
IFRSs/International Financial Reporting Standards
International accounting standards as endorsed by the European Union
Net income
Income after income taxes that is attributable to the stockholders