How Companies Can Stabilize Their EBITDA Through Innovation
EBITDA Optimization 2024-2026: Strategies and Measures to Tackle Energy Costs and Supply Shortages
The current economic situation is posing significant challenges for companies worldwide. Particularly in Germany, increased energy costs and disruptions in the supply chain are massively affecting EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This article examines how these factors impact EBITDA depending on the industry and what innovative measures could mitigate the negative effects.
1. Comparing EBITDA with and without Measures (2024 vs. Future Forecast up to 2026)
The following table shows the projected EBITDA in 2024 without measures and a projection for 2026 if innovation-promoting measures are implemented. Returning to the 2022 EBITDA level is possible for most industries with efficiency improvements.
Industry | EBITDA 2024 without Measures | EBITDA 2026 with Measures |
---|---|---|
Chemical Industry | 27 Bn. € (-22.9%) | 34 Bn. € (+25.9%) |
Metal Industry | 13 Bn. € (-27.8%) | 17 Bn. € (+30.8%) |
Automotive Industry | 45 Bn. € (-10%) | 49 Bn. € (+8.9%) |
Food Production | 9 Bn. € (-25%) | 11 Bn. € (+22.2%) |
Service Sector | 57 Bn. € (-5%) | 59 Bn. € (+3.5%) |
2. Negative Influences on EBITDA in Germany (Current and Forecasted)
Energy and material costs are currently the biggest burdens on EBITDA in German companies. The following table shows the percentage burden by industry and the forecast up to 2025 if no countermeasures are taken.
Industry | Current Burden | Forecast 2025 |
---|---|---|
Chemical Industry | -37% (Energy & Material) | -30% |
Metal Industry | -34% (Energy & Material) | -25% |
Automotive Industry | -27% (Material & Personnel) | -20% |
Food Production | -31% (Cooling & Transport) | -25% |
Service Sector | -17% (Operating Costs) | -15% |
3. Percentage Changes in EBITDA by Industry Due to Increased Energy Prices
Energy costs affect EBITDA to varying degrees depending on the industry. The following table shows the percentage changes for the years 2023 and 2024.
Industry | Change 2023 (%) | Change 2024 (%) |
---|---|---|
Chemical Industry | -14.3% | -10% |
Metal Industry | -16.7% | -13.3% |
Automotive Industry | -4% | -2.1% |
Food Production | -16.7% | -10% |
Service Sector | -1.7% | -1.7% |
4. Effect of Increased Energy Prices on EBITDA (Industry-Dependent)
Energy dependency and thus the burden of rising energy prices vary significantly between industries. The following table provides an overview of the main factors depending on energy cost intensity.
Industry | Energy Dependency | Main Effects |
---|---|---|
Chemical Industry | High | Production costs increase significantly |
Metal Industry | High | Energy savings only partially possible |
Automotive Industry | Medium | Raw materials and energy weigh heavily |
Food Production | High | Cooling and storage are cost-intensive |
Service Sector | Low | Indirect operating costs |
5. Innovative Measures for EBITDA Improvement by Industry
Innovative measures for efficiency improvement and digitalization can stabilize EBITDA and secure business success. The following table shows the measures by industry and the associated potential for EBITDA increase.
Industry | Innovations | EBITDA Potential |
---|---|---|
Chemical Industry | Energy Efficiency & Automation | +8-12% (3-4 Bn. €) |
Metal Industry | Recycling & AI Monitoring | +6-10% (1-2 Bn. €) |
Automotive Industry | Electromobility & Industry 4.0 | +8-12% (4-6 Bn. €) |
Food Production | Cooling and Storage Technologies | +5-8% (1-2 Bn. €) |
Service Sector | Digital Transformation | +4-5% (2-3 Bn. €) |
Conclusion: Challenges and Potentials for EBITDA Optimization
The increased energy prices and ongoing disruptions in global supply chains currently pose the biggest challenges for German companies as they directly impact EBITDA. Particularly energy-intensive industries like the chemical and metal industries are affected by this development. However, through targeted innovative measures such as digitalization, automation, and the use of energy-efficient technologies, there is potential to mitigate these negative effects and improve the EBITDA level again in the coming years.
Companies that wish to specifically prepare for these topics can benefit from the S+P Seminars on Digital Transformation. These seminars offer comprehensive insights into modern technologies and practical strategies for efficiency enhancement, which not only reduce production costs but also promote resilience and innovation. In this way, companies can develop forward-looking solutions to sustainably secure their financial stability and successfully work their way back to the EBITDA level of 2022.