Solvay 2022 first half results
July 28 2022 - 1:00AM
Solvay 2022 first half results
July 28, 2022 at 7 a.m. CEST
Solvay 2022 first half
results
Solvay raises full year guidance following strong
performance driven by higher volumes and prices
Highlights
- Net sales in the
second quarter of 2022 were up +32.6% organically versus Q2 2021
driven by +26% in price actions (€690 million) and +6% from volumes
(€164 million). Growth was driven by strong demand across all key
markets, including automotive, aerospace, consumer, and electronics
industries. Sales were up considerably in the Materials (+38%),
Chemicals (+27%), and Solutions (+33%) segments versus Q2 2021.
First half 2022 net sales were 29.5% higher organically than first
half 2021.
- Record underlying
EBITDA of €864 million in Q2 2022 was up +35% organically
year on year, reflecting the volume growth and higher pricing. All
three segments contributed to the growth, with Solutions up +58%,
Materials up +45%, and Chemicals up +18% organically. First half
2022 EBITDA is +28% higher than first half 2021.
- The underlying EBITDA
margin of 24.8% is +0.3pp higher than Q2 2021 and +1.5 pp
higher than Q1 2022, mainly as a result of the strong pricing
actions necessary to offset inflationary headwinds.
- Underlying Net
Profit was €462 million in Q2 2022, around +67% higher
than the result achieved in Q2 2021.
- Free Cash Flow was
€257 million in Q2 2022, reflecting the strong performance, capex
for growth projects, and the working capital increase linked to
higher sales. First-half 2022 FCF of €473 million was around +13%
higher than in H1 2021.
- All time record
ROCE at 13.7%, +2.3 pp above the end of 2021.
- Continued strengthening of the
balance sheet with underlying net debt at €4
billion, reaching a historic low leverage of 1.5x. Provisions
decreased by €374 million, reaching a new low of €2.2 billion due
largely to higher discount rates.
- Building on its Solvay One Planet
sustainability roadmap, Solvay announced its plan to reduce scope 3
greenhouse gas emissions by -24% by 20301. This complements its
previous commitment to align its scope 1 and 2 trajectory with the
Paris Agreement.
|
|
Second quarter |
|
First half |
Underlying (in € million) |
|
2022 |
2021 |
% yoy |
% organic |
|
2022 |
2021 |
% yoy |
% organic |
Net sales |
|
3,477 |
2,456 |
+41.5% |
+32.6% |
|
6,532 |
4,829 |
+35.3% |
+29.5% |
EBITDA |
|
864 |
602 |
+43.4% |
+34.9% |
|
1,576 |
1,185 |
+32.9% |
+27.7% |
EBITDA margin |
|
24.8% |
24.5% |
+0.3pp |
- |
|
24.1% |
24.5% |
-0.4pp |
- |
FCF |
|
257 |
135 |
n.m. |
- |
|
473 |
417 |
+13.3% |
- |
FCF conversion ratio (LTM) |
|
34.5% |
46.1% |
-11.6pp |
- |
|
34.5% |
46.1% |
-11.6pp |
- |
ROCE (LTM) |
|
13.7% |
9.5% |
+4.2pp |
- |
|
13.7% |
9.5% |
+4.2pp |
- |
Ilham
Kadri, CEO“I am proud of how our
businesses have continued to perform in a strong demand environment
in the second quarter, again setting new records for the company. I
wish to thank our global teams for their unwavering commitment and
resilience. Demand for our high-value technologies was evident in
the volume uplift in the quarter as we continue to offer solutions
that support our customers needs. The pricing initiatives helped to
offset the significant rise in costs and enabled us to sustain
EBITDA margins, and we are grateful to our customers who value our
technologies and services. Going forward, our business leaders will
continue investing in our key growth areas while navigating the
uncertain macroeconomic environment.”
2022 Outlook Full year
underlying EBITDA estimate is increased from the previously shared
guidance of mid-to-high single digit growth to a range of 14% to
18% organic growth for the full year 2022. The Free Cash Flow
estimate has increased from €650 million previously to around €750
million, overcoming significant increases in working capital. The
estimates reflect modest declines in demand consistent with the
generally negative economic outlook and do not assume significant
discontinuities related to the supply of natural gas particularly
in Europe.
Register to the webcast scheduled at
14:00 CEST here - Link to financial
report - Link to financial calendar
1against a 2018 baseline ; incorporating 90% of the Group total
scope 3 GHG emissions
- 2022Q2_Financialreport_EN_final
- 2022Q2-Master PR_EN
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