SOLVAY GROUP FINANCIAL REPORT - FOURTH QUARTER & FULL YEAR 2016 - HIGHLIGHTS
February 24 2017 - 1:00AM
![http://www.solvay.com/en/binaries/cover-results-2016-281082.jpg?size=medium](https://hugin.info/133981/I/2081644/115214.jpg)
Press release - CEO Video -
Toolkit
Brussels,
February 24, 2017
-
16% EBITDA increase in the
fourth quarter with growth in all segments
-
Solid full-year performance
with 7.5% EBITDA increase,
leading to 21% record margin and free cash flow of
€ 876 million
-
Full-year
dividend(1) raised 4.5% to
€ 3.45 gross per share
Fourth quarter 2016
results(2)
-
Net sales totaled
€ 2.8 billion, up 1.6%, mainly due to the 3.9% increase
in volume, partially offset by the (2.2)% reduction of sales
prices.
-
Underlying EBITDA grew 16%
to € 527 million. Volumes contributed 9.1%, across the
operating segments, supported by less pronounced seasonality.
Pricing power contributed 9.7%, benefiting from operational
excellence delivery. The EBITDA margin reached 19% in the quarter,
up 2.4 percentage points year on year.
-
Advanced Materials rose
6.1% to € 259 million year on year with good volume
growth in automotive, industrial, consumer goods and healthcare
which more than offset lower volumes in smart devices and
aerospace;
-
Advanced Formulations
increased 5.6% to € 124 million year on year with a
pick-up in volume growth, as strong performance in agro more than
offset a drop in oil & gas, which improved sequentially on the
back of a higher rig count;
-
Performance Chemicals were
17% higher at € 168 million year on year as a result of
solid volume growth, benefits from lower energy costs and
excellence initiatives across the segment;
-
Functional Polymers grew
131% to € 51 million year on year, primarily driven by
robust polyamide performance;
-
Corporate & Business Services was at
€ (75) million, equal to the fourth quarter of
2015.
-
Profit attributable to Solvay
share, on an IFRS basis was € 245 million versus
€ 112 million in 2015. On an underlying basis it was
€ 183 million versus € 136 million in 2015,
reflecting a rise in operating profit with higher net financial
charges partially offset by lower income taxes.
-
Free cash flow was € 412
million, stable versus the fourth quarter of 2015.
-
Net debt on an IFRS basis
was € 4.4 billion. Underlying net debt(3) increased
slightly to € 6.6 billion from € 6.5 billion at
end-September.
(1) Recommended dividend pending General
Shareholders meeting.
(2) The underlying and IFRS data compare to unaudited pro forma
figures of the same period in 2015, as if the Cytec acquisition had
occurred on January 1, 2015.
(3) Underlying net debt includes the perpetual hybrid bonds,
accounted for as equity under IFRS.
Full year 2016 results(1)
-
Net sales fell (4.7)% to
€ 10.9 billion, as lower sales prices in a deflationary
raw material price environment weighed (2.3)%. Foreign exchange
fluctuations dented sales by (1.5)%. Volumes were stable
overall.
-
Underlying EBITDA grew 7.5%
to € 2,284 million, driven by pricing power of 5.9% and
fixed cost reduction benefits of 2.9%. Operational excellence
exceeded € 200 million, while completion of the Cytec
integration delivered € 70 million of synergies, well
ahead of the initial plan. There were no significant effects from
volume/mix changes. Foreign exchange fluctuations had a (1.9)%
conversion effect. The EBITDA margin reached a record 21%, a
notable increase from 19% in 2015.
-
Profit attributable to Solvay
share, on an IFRS basis was € 621 m vs € 406 million in 2015.
On an underlying basis it grew to € 846 million versus € 768
million in 2015.
-
Free cash flow was
€ 876 million, up € 384 million year on year.
Continuing operations accounted for € 736 million, an increase
of € 342 million, driven by higher EBITDA, reduced
capital expenditure and efficient working capital management.
-
CFROI increased to 6.3%, up
0.2 percentage point from 6.1% pro forma in 2015 on non-restated
basis.
-
Dividend increase proposed
of 4.5% to € 3.45 gross per share for 2016, of which the
balance is payable on May 16, 2017.
2017 Outlook(2)
Solvay remains well on track to achieve its
mid-term objectives. For 2017, Solvay expects underlying EBITDA to
grow by mid-single digit, mainly driven by Advanced Materials and
Advanced Formulations, and to generate more than
€ 800 million of free cash flow from continuing
operations.
Quote of the CEO, Jean-Pierre Clamadieu
"Solvay delivered solid full-year
EBITDA growth supported by our transformation and subsequent
improvement of our customer profile. Our pursuit of operational
excellence, swift delivery of synergies and continued pricing
momentum have contributed strongly to our performance. The upgrade
of our portfolio has also enabled us to significantly lower our
greenhouse gas intensity. Overall, these elements combine to
enhance our sustainable value creation for both customers and
shareholders."
(1) The underlying and IFRS data compare to
unaudited pro forma figures of the same period in 2015, as if the
Cytec acquisition had occurred on January 1, 2015.
(2) A more detailed outlook may be found on page 8 of this
report.
Forenote
Following the announcements at the end of 2016 of the intended
divestments of the Acetow and Vinythai businesses, these businesses
are reclassified as discontinued operations and as assets held for
sale. For comparative purposes, the 2015 income statement has been
restated. These figures were published on
January 17.
The results of former Cytec are consolidated in the Group's income
and cash flow statements since January 1, 2016. Comparative
information for the fourth quarter and full year 2015 is presented
on an unaudited pro forma basis as if the acquisition of Cytec had
taken place on January 1, 2015.
Besides IFRS accounts, Solvay also presents underlying Income
Statement performance indicators to provide a more consistent and
comparable indication of the Group's financial performance. The
underlying performance indicators adjust IFRS figures for the
non-cash Purchase Price Allocation (PPA) accounting impacts related
to acquisitions, for the coupons of perpetual hybrid bonds,
classified as equity under IFRS but treated as debt in the
underlying statements, and for other elements that would distort
the analysis of the Group's underlying performance. The comments on
the results made on pages 2 to 9 are on an underlying basis, unless
otherwise stated.
Follow us on twitter
@SolvayGroup
Solvay is a multi-specialty
chemical company, committed to developing chemistry that addresses
key societal challenges. Solvay innovates and partners with
customers in diverse global end markets. Its products and solutions
are used in planes, cars, smart and medical devices, batteries, in
mineral and oil extraction, among many other applications promoting
sustainability. Its lightweighting materials enhance cleaner
mobility, its formulations optimize the use of resources and its
performance chemicals improve air and water quality. Solvay is
headquartered in Brussels with around 27,000 employees in 58
countries. Pro forma net sales were € 10.9 billion in
2016, with 90% from activities where Solvay ranks among the world's
top 3 leaders. Solvay SA (SOLB.BE) is listed on Euronext
Brussels and Paris (Bloomberg: SOLB.BB - Reuters: SOLB.BR) and
in the United States its shares (SOLVY) are traded through a
level-1 ADR program.
Caroline Jacobs |
Kimberly Stewart |
Jodi Allen |
Geoffroy Raskin |
Bisser Alexandrov |
Media Relations |
Investor Relations |
Investor Relations |
Investor Relations |
Investor Relations |
+32 2 264 1530 |
+32 2 264 3694 |
+1 9733573283 |
+32 2 264 1540 |
+32 2 264 3687 |
To read the complete financial
report in PDF
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Solvay S.A. via Globenewswire
Solvay (EU:SOLB)
Historical Stock Chart
From Jun 2024 to Jul 2024
Solvay (EU:SOLB)
Historical Stock Chart
From Jul 2023 to Jul 2024