Solvay fourth quarter and full-year 2022 results
February 23 2023 - 1:00AM
Solvay fourth quarter and full-year 2022 results
February
23, 2023 at 7 a.m. CET
Solvay fourth quarter and full-year 2022
resultsRecord 2022 Sales, EBITDA, Cash and ROCE driven by
higher prices and sustained demand
Highlights
- Net sales for the
full year 2022 were up +25.6% organically to €13.4 billion versus
2021, with 24.4% driven by pricing and 1.2% driven by volume
growth, particularly in Materials. In the fourth quarter, net sales
increased +15.2% organically versus Q4 2021 with pricing up +21.1%
and volumes down -5.9%, as sustained volume growth in Materials was
more than offset by softer market demand in Solutions and
Chemicals.
- Pricing measures
of €2.6 billion more than offset the €1.6 billion impact from
variable cost inflation resulting in a net pricing benefit of €1.0
billion for the year, with €268 million of net price benefit in
Q4.
- Structural cost
savings for the full year 2022 amounted to €79 million,
bringing total structural savings since 2019 to €467 million, or
93% of the 2024 target of €500 million.
- Underlying EBITDA
increased +28.7% organically versus full year 2021,
setting a new record at €3,229 million. EBITDA in the fourth
quarter grew +18.7% organically driven mainly by pricing, volumes
and mix.
- Underlying net
profit amounted to €1,743 million, up
67.6% compared to 2021.
- Record annual free cash
flow generation of €1,094 million reflecting higher
profits, margin expansion and working capital discipline, and this
is despite a +39% increase in capital investments to €1,022 million
for the year.
- Continued strengthening of the
balance sheet with reduced net debt (€358 million)
and provisions (€503 million) brought the leverage ratio to an
historic low of 1.1x.
- ROCE for 2022
reached a record level at 16.0% versus 11.4% in 2021, 6.9% in 2020,
and 8.1% in 2019.
- Total proposed
dividend increase of €0.20 to €4.05 per share, reflective
of the record performance, subject to Shareholders’ approval during
the next Annual General Meeting scheduled for May 9, 2023.
|
|
Fourth quarter |
|
Full year |
Underlying (in € million) |
|
2022 |
2021 |
% yoy |
% organic |
|
2022 |
2021 |
% yoy |
% organic |
Net sales |
|
3,286 |
2,703 |
+21.6% |
+15.2% |
|
13,426 |
10,105 |
+32.9% |
+25.6% |
EBITDA |
|
736 |
572 |
+28.6% |
+18.7% |
|
3,229 |
2,356 |
+37.0% |
+28.7% |
EBITDA margin |
|
22.4% |
21.2% |
+1.2pp |
- |
|
24.0% |
23.3% |
+0.7pp |
- |
FCF1 |
|
170 |
150 |
+13.3% |
- |
|
1,094 |
843 |
+29.8% |
- |
FCF conversion ratio (LTM) |
|
34.4% |
37.6% |
-3.2pp |
- |
|
34.4% |
37.6% |
-3.2pp |
- |
ROCE (LTM) |
|
16.0% |
11.4% |
+4.7pp |
- |
|
16.0% |
11.4% |
+4.7pp |
- |
Ilham Kadri,
CEO
“I am particularly proud of the significant
progress we are making in ESG and the new financial records we have
set. I applaud Solvay teams for their drive, dedication, and high
level of engagement – and we will be rewarding our people and our
shareholders in line with these achievements. This performance has
further strengthened our balance sheet, enabling us to navigate
current headwinds. We have established a strong foundation and look
forward to the next step in our journey as we plan to separate into
two strong companies in December of this year.”
2023 Outlook
In the context of the current macro environment,
we expect volumes to be softer in certain key markets. As a result
full-year underlying EBITDA is currently estimated between -3% and
-9% versus 20222. Free Cash Flow is estimated at around €750
million reflecting the current cycle of growth investments that is
underway.
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 2 on an organic basis, meaning at constant
forex and scope
- 2022Q4-Master PR EN-final
- 2022Q4_Financialreport_EN_final
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