Solvay nine months 2021 results
October 28 2021 - 1:00AM
Solvay nine months 2021 results
Register to the webcast scheduled
at 13:00 CEST here - Link to financial
report - Link to financial calendar
Solvay nine months 2021
resultsStrong profit due to high demand, price and
mitigation actions overcoming significant inflationary
pressure
Highlights
- Net sales in the
third quarter of 2021 were up +25% organically versus Q3 2020 and
up by +6% organically compared to Q3 2019 (+12% excluding
Composites), reflecting continued strong demand in most of our
markets including record sales in Specialty Polymers. Nine months
2021 sales were 15% organically above 9M 2020, and up +0.5% (+6%
excluding Composites) compared to 2019.
- Underlying EBITDA
at €599 million in Q3 2021 was up +31% year on year on a comparable
scope and foreign exchange basis, reflecting demand recovery,
mitigating actions in the face of sharp increases in energy prices,
raw materials and logistics, and structural cost savings of €41
million. Nine months 2021 EBITDA is 28% higher than in 2020 and is
6% higher compared to 2019 (at constant scope and currency).
- EBITDA margin at
23.3% is 0.8 percentage points higher than Q3 2020 thanks to higher
volumes, pricing, and structural cost measures which partially
offset the €145 million impact from rising raw materials, energy
and logistics costs.
- Underlying Net
Profit at €273 million in Q3 2021, 55%
higher than versus Q3 2020.
- Free Cash
Flow1 amounted to €276 million in Q3
2021, marking the 10th consecutive quarter of positive free cash
flow and bringing the nine months 2021 total to €692 million.
- Interim dividend
of €1.50 gross per share decided by the Board of Directors, stable
year on year, to be paid on January 17, 2022.
- Solvay ONE Planet
sustainability roadmap strengthened with new commitment to reach
carbon neutrality before 2050.
|
|
Third quarter |
|
Nine months |
Underlying (in € million) |
|
2021 |
2020 |
2019 |
% org 21/20 |
% org21/19 |
|
2021 |
2020 |
2019 |
% org21/20 |
% org21/19 |
Net sales |
|
2,573 |
2,103 |
2,578 |
+24.7% |
+6.2% |
|
7,402 |
6,751 |
7,803 |
+15.1% |
+0.5% |
EBITDA |
|
599 |
473 |
601 |
+31.1% |
+6.7% |
|
1,784 |
1,481 |
1,796 |
+28.0% |
+5.7% |
EBITDA margin |
|
23.3% |
22.5% |
23.3% |
- |
- |
|
24.1% |
21.9% |
23.0% |
- |
- |
FCF 1 |
|
276 |
366 |
313 |
- |
- |
|
692 |
801 |
345 |
- |
- |
FCF conversion ratio (LTM) |
|
39.5% |
54.8% |
35.3% |
- |
- |
|
39.5% |
54.8% |
35.3% |
- |
- |
CEO Quote“I want to thank our
teams for another strong set of results. We saw continued demand
recovery in most of our businesses and achieved record sales in
Specialty Polymers. Indeed, our Q3 sales performance represents
high single-digit growth versus 2019 despite slower dynamics in
civil aerospace. Our relentless focus on cost and price actions
allowed margins to remain stable comparatively to their pre-covid19
level. Looking forward, further actions are being implemented to
account for the rising raw materials, energy and logistics costs.
Despite these macro headwinds, we maintain our EBITDA guidance and
upgrade our Free Cash Flow estimate by €50 million. As we execute
on our GROW strategy, we continue to disproportionately allocate
resources to our growth businesses and platforms in order to
further enhance our capacity to generate superior and sustainable
growth for the future.
I am also proud to announce today that Solvay
has targeted carbon neutrality before 2050. We remain focused on
delivering on our Solvay One Planet priorities and we will raise
the bar in response to climate change. Today’s announcement
represents a key step forward in our journey toward net-zero
emissions.”
20212 Outlook
Full year underlying EBITDA estimate is
maintained in the range of €2.2 to €2.3 billion notwithstanding the
expectation that high energy prices will persist into Q4 2021. The
free cash flow estimate is upgraded to around €800 million.
1 Free cash flow is free cash flow to Solvay shareholders from
continuing operations 2 Barring additional deterioration related to
another wave of Covid-19 in the fourth quarter.
Safe harborThis 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.
- 2021Q3-press release-ENG-final
- 2021Q3_Financialreport_EN_final
Solvay (EU:SOLB)
Historical Stock Chart
From May 2024 to Jun 2024
Solvay (EU:SOLB)
Historical Stock Chart
From Jun 2023 to Jun 2024