Solvay third quarter and nine months 2022 results
November 03 2022 - 2:02AM
Solvay third quarter and nine months 2022 results
November
3, 2022 at 7 a.m. CET
Solvay third quarter and nine months 2022
resultsRecord Q3 Sales and EBITDA driven by higher prices
and sustained demand
Highlights
- Record Net Sales
in the third quarter of 2022 were up +29.5% organically versus Q3
2021, driven by higher prices, while overall volumes were
essentially flat versus the prior year. All regions delivered
double-digit organic growth in the quarter. Nine month 2022 sales
were also up +29.5% organically thanks to pricing and volume growth
versus the nine-month period 2021.
- Record Underlying
EBITDA at €917 million in Q3 2022 was up +39.8%
organically versus Q3 2021, driven by higher pricing which overcame
the significant inflationary costs in the quarter. Nine months 2022
EBITDA was +31.9% organically above the prior-year nine
months.
- Record EBITDA
margin at 25.4% is +2.1 percentage points higher than Q3
2021 thanks to the sustained progress on pricing which offset the
impact from rising raw materials, energy and logistics costs.
- Underlying Net
Profit at €509 million in Q3 2022, 86.1% higher than Q3
2021.
- Free Cash Flow
increased to €452 million in Q3 2022 (bringing the nine-month 2022
total to €924 million), and was positive for the 14th consecutive
quarter. The FCF conversion ratio (LTM) was 36.8%.
- ROCE reached an
all-time high at 15.4% versus 11.4% at the end of 2021.
- Further strengthening of the
balance sheet with underlying net debt slightly
down to €3.8 billion, reaching a historic low leverage of
1.2x.
- Interim dividend
of €1.54 gross per share validated by the Board of Directors, to be
paid on January 18, 2023.
|
|
Third quarter |
|
Nine months |
Underlying (in € million) |
|
2022 |
2021 |
% yoy |
% organic |
|
2022 |
2021 |
% yoy |
% organic |
Net sales |
|
3,609 |
2,573 |
+40.3% |
+29.5% |
|
10,141 |
7,402 |
+37.0% |
+29.5% |
EBITDA |
|
917 |
599 |
+53.2% |
+39.8% |
|
2,493 |
1,784 |
+39.7% |
+31.9% |
EBITDA margin |
|
25.4% |
23.3% |
+2.1pp |
- |
|
24.6% |
24.1% |
+0.5pp |
- |
FCF1 |
|
452 |
276 |
+63.8% |
- |
|
924 |
692 |
+33.5% |
- |
FCF conversion ratio (LTM) |
|
36.8% |
39.5% |
-2.6pp |
- |
|
36.8% |
39.5% |
-2.6pp |
- |
ROCE (LTM) |
|
15.4% |
10.6% |
+4.8pp |
- |
|
15.4% |
10.6% |
+4.8pp |
- |
Ilham
Kadri, CEO
“I am so incredibly proud of our people for
delivering another quarter of outstanding performance. We again set
new records in Sales, EBITDA, and ROCE, which is a clear
demonstration of the hard work by our teams and real transformation
that has occurred in the past three and a half years. We remain
focused on bringing new innovations to the market that deliver
measurable value to our customers, and we are prioritizing
investments in strategic growth areas. Today’s announcement is
another example of our commitment to serve the growing
electrification trend by expanding manufacturing of high
performance polymers for batteries in North America. I could not be
more pleased with these accomplishments and excited about our
bright future as we progress with our plan to separate into two
independent, strong companies.”
2022 Outlook
On October 24, the company upgraded its full
year 2022 EBITDA estimate to grow organically by around 28%. Today
the company increased its Free Cash Flow estimate from around €750
million to around €1 billion for the year, including capital
investments which may reach €1 billion.
Register to the webcast
scheduled at 14:00 CET here -
Link to financial report - Link
to financial calendar
1 Free cash flow is free cash flow to Solvay shareholders from
continuing operations
- Solvay third quarter and nine months 2022 results
- 2022Q3_Financialreport_EN_final
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