Solvay first quarter 2021 results: Strong start to the year with double-digit growth in Cash and EBITDA and record EBITDA ma...
May 05 2021 - 1:00AM
Solvay first quarter 2021 results: Strong start to the year with
double-digit growth in Cash and EBITDA and record EBITDA
margins
Register now to the webcast scheduled at
15:00 CESTLink to financial
report
Solvay first quarter 2021
resultsStrong start to the year with double-digit growth
in Cash and EBITDA and record EBITDA margins
May 5, 2021 at 7 a.m. CEST
Highlights
- Net Sales in the
first quarter of 2021 were up 1.9% organically driven by strong
demand in automotive, with organic sales in Specialty Polymers up
10% year-on-year, exceptional performance in Coatis up 55%, and
recovery in the mining industry driving Technology Solutions sales
up 15%, whereas sales in Composites were 37% lower.
- Net Sales grew 8.6% organically
year on year excluding Composites and Oil & Gas, which still
face challenges yet have shown sequential improvement versus the
fourth quarter.
- Structural cost
savings of €80 million achieved in Q1, up 78% versus Q4
2020.
- Underlying EBITDA
in Q1 2020 was up 10.3% organically yoy, and 7% higher than Q1 2019
on comparable FX & scope basis despite 3% lower sales,
reflecting the impacts of significant cost reduction measures taken
in the last 2 years. The underlying EBITDA
margin increased yoy to a new record at 24.6% driven
mainly by strong volume recovery in most markets and cost
reductions measures, despite the adverse impacts such as increasing
raw material and logistic prices as well as supply chain
disruptions due to US storms and the Suez Canal blockage. This is
1.6 and 2.4 percentage points higher than Q1 2020 and Q1 2019,
respectively.
- Underlying Net
Profit was €240 million in Q1 2021, up 1.8% compared to Q1
2020.
- Free Cash Flow in
Q1 2021 amounted to €282 million, up 40% of Q1 2020, reflecting
continued working capital discipline even as activity levels
increased, as well as the benefit of deleveraging debt and
pensions. Total voluntary pension contributions of €0.8 billion
since Q4 2019 generate an improvement of more than €100 million per
annum.
- Progress on portfolio
simplification, with the closure of 5 business line
divestments in the first quarter and the last one occurring in Q2
2021.
- Reinvesting in Solvay One
Planet, including a decision to invest further in energy
transition at our Rheinberg Soda Ash plant with a complete phase
out of coal. This action not only enables the site to be the lowest
Soda Ash CO2 emitter globally (irrespective of the production
process being natural or synthetic), but also creates significant
economic value.
Underlying, (in € million) |
Q1 2021 |
Q1 2020 |
% yoy |
% organic |
Net sales |
2,373 |
2,474 |
-4.1% |
+1.9% |
EBITDA |
583 |
569 |
+2.5% |
+10.3% |
EBITDA margin |
24.6% |
23.0% |
+1.6pp |
- |
FCF to shareholders from continuing
operations |
282 |
202 |
+39.8% |
- |
FCF conversion ratio (LTM) |
54.8% |
40.4% |
+14.4pp |
- |
CEO Quote
“First quarter results reflect the continued
economic recovery visible across many of our markets. I am pleased
to see that our disciplined structural actions taken last year to
lower the company’s cost base have enabled strong quality of
earnings. We have also maintained our sharp focus on cash
management, delivering eight consecutive quarters of positive free
cash flow generation. Looking ahead, we are investing in our growth
platforms, our front line, and in innovation that will support
sustainable top line growth across the mid-term.”
20211 Outlook
Full year underlying EBITDA is estimated between
€2.0 and €2.2 billion, and Free Cash Flow is estimated around €650
million, up from the prior estimate between €600 and €650
million.
Safe harbor
This press release may contain forward-looking
information. Forward-looking statements describe expectations,
plans, strategies, goals, future events or intentions. The
achievement of forward-looking statements contained in this press
release is subject to risks and uncertainties relating to a number
of factors, including general economic factors, interest rate and
foreign currency exchange rate fluctuations, changing market
conditions, product competition, the nature of product development,
impact of acquisitions and divestitures, restructurings, products
withdrawals, regulatory approval processes, all-in scenario of
R&I projects and other unusual items. Consequently, actual
results or future events may differ materially from those expressed
or implied by such forward-looking statements. Should known or
unknown risks or uncertainties materialize, or should our
assumptions prove inaccurate, actual results could vary materially
from those anticipated. The Company undertakes no obligation to
publicly update or revise any forward-looking statements.
About Solvay Investor
Relations
Results documentationAnnual reportG.R.O.W.
StrategyWhy invest in Solvay?Share informationCredit informationESG
information Webcasts, podcasts and presentations
1 Barring additional deterioration related to a
third wave of Covid-19 in the second half.
- Financial report
- Full press release
Solvay (EU:SOLB)
Historical Stock Chart
From May 2024 to Jun 2024
Solvay (EU:SOLB)
Historical Stock Chart
From Jun 2023 to Jun 2024