At the Annual General Meeting (AGM) of Covestro AG, shareholders approved all proposals presented by the Board of Management and Supervisory Board with the required majorities. Both governing bodies received ratification for their actions during the previous fiscal year. The AGM was once again held virtually and streamed live, allowing shareholders and their proxies to engage directly via video link—mirroring the interactivity of in-person meetings.
CEO Reviews 2024 Performance Amid Challenging Market Conditions
Dr. Markus Steilemann, CEO of Covestro, opened his AGM address by reviewing the 2024 fiscal year. He acknowledged the continued market weakness, strong competition, and geopolitical uncertainty that defined the year. Despite these pressures, Covestro advanced its transformation toward a circular economy, systematically identifying new opportunities and strengthening its position as an innovative and sustainable chemical company.
“We remained focused and moved forward with determination,” Steilemann stated. “This year, we’ll stay on this path and build on our core strengths through four strategic focus areas.”
Strategy Refinement and Efficiency Measures
To adapt to shifting market demands, Covestro has refined its corporate strategy and is actively reassessing its internal structures. “We are leaving no stone unturned to unlock untapped efficiency and growth potential,” Steilemann emphasized. “Our organization has become leaner, more agile, and more targeted in its operations.”
Covestro aims to cut annual costs by €400 million by 2028, through performance enhancements and structural improvements. The company’s four strategic focus areas include:
- Ongoing transformation
- Sustainable growth
- Digitalization and innovation
- Systematic implementation of sustainability goals
Investments in Innovation and Sustainability
A key element of Covestro’s transformation involves targeted management of global production capacities. The company continues to invest in sustainable materials and expand strategic sites to remain competitive in high-tech markets. In parallel, Covestro is reducing its ecological footprint by increasing its use of renewable energy and developing advanced recycling technologies.
Digitalization also plays a critical role. By embedding digital processes across the value chain, Covestro aims to improve operational efficiency and unlock new business opportunities.
Strategic Partnership with XRG
Steilemann also highlighted the company’s strategic partnership with XRG, calling it a timely and beneficial move. Covestro expects the transaction to close in the second half of 2025, marking a significant step toward long-term growth and collaboration.
Reelection of Supervisory Board Members
With the conclusion of the AGM on April 17, 2025, the term of five Supervisory Board members expired. Shareholders reelected Dr. Christine Maria Bortenlänger, Lise Kingo, Dr. Richard Pott, Regine Stachelhaus, and Patrick W. Thomas for an additional two-year term. These individuals bring strong expertise in capital markets, sustainability, corporate governance, and industry leadership. Dr. Richard Pott was reappointed as Chair of the Supervisory Board.
Financial Review: Efficiency Gains Offset Price Declines
Christian Baier, CFO of Covestro, presented the 2024 financial results. He noted that efficiency improvements and better plant availability helped increase production volumes globally. However, falling selling prices led to a 1.4% drop in sales, totaling €14.2 billion, and negatively affected the Group’s net income. Although EBITDA remained stable, higher asset impairments weighed down final earnings.
No Dividend Due to Net Loss
In line with Covestro’s dividend policy—which links payouts to the company’s financial health—the Board decided not to issue a dividend for fiscal year 2024 due to the net loss.
Looking Ahead: A Clear Strategy for a Sustainable Future
Steilemann concluded with a confident outlook, assuring shareholders of the company’s clear direction. “We face considerable challenges, but our strategy provides a solid roadmap,” he said. “Covestro is committed to cost leadership, operational efficiency, and innovation. As a pioneer in the circular economy, we are well-positioned to lead the industry transformation and shape a sustainable future.”
