Solvay first quarter 2023 results
May 04 2023 - 1:00AM
Solvay first quarter 2023 results
May
4, 2023 at 7 a.m. CET
Solvay first quarter 2023
resultsStrong pricing drives +22% organic EBITDA growth in
the quarterUpgraded full year EBITDA and FCF outlook
Highlights
- Net sales in the
first quarter of 2023 grew +2.0% organically to €3.2 billion versus
Q1 2022 driven by higher prices (+14%), overcoming lower volumes
(-12%) due to softer demand across several end markets including
batteries for auto, construction, and consumer-driven industries.
Pricing measures of €421 million more than offset the €127 million
impact from variable cost inflation resulting in €294 million of
net price benefit in Q1 2023.
- Underlying EBITDA
in Q1 2023 of €839 million was up +22.0% versus Q1 2022 on an
organic basis. Growth in Materials (+35%) and Chemicals (+19%) more
than offset the decrease in Solutions (-9%). Sequentially, Q1 2023
EBITDA was up +14% versus Q4 2022.
- Underlying EBITDA
margin in Q1 2023 reached a new record level at 26.5%,
+320 basis points higher than in Q1 2022.
- Underlying net
profit was €460 million in Q1 2023, up +24.5% compared to
Q1 2022.
- Free cash flow
generation of €125 million in Q1 2023 reflects high profits,
investments in working capital and capital expenditures, and the
benefit of a settlement of litigation.
- Simplified the portfolio with the
sale of its 50% stake in RusVinyl, using proceeds to reduce net
debt and further strengthen the balance sheet. The
leverage ratio is at an historic low of 1.0x.
- ROCE for Q1 2023
reached a record level at 16.7%.
Underlying, (in € million) |
Q1 2023 |
Q1 2022 |
% yoy |
% organic |
Net sales |
3,167 |
3,055 |
+3.6% |
+2.0% |
EBITDA |
839 |
712 |
+18.0% |
+22.0% |
EBITDA margin |
26.5% |
23.3% |
+3.2pp |
- |
FCF1 |
125 |
216 |
-42.0% |
- |
FCF conversion ratio (LTM) |
30.4% |
32.9% |
-2.5pp |
- |
ROCE (LTM) |
16.7% |
12.3% |
+4.4pp |
- |
Ilham Kadri,
CEO
“I’m pleased to report that we sustained pricing
in the context of a higher cost and weaker demand environment,
which supported our strong EBITDA performance. We delivered our
16th consecutive quarter of positive free cash flow notwithstanding
increased investments, and we intend to adapt working capital
levels whilst ensuring that we continue to meet our customers’
needs. We remain focused on investing for growth and further
reinforcing our solid foundations as we progress in our journey to
separate into two strong, independent companies later this
year.”
2023 Outlook update
The company increases its full-year underlying
EBITDA organic growth estimate from the previously indicated
guidance of between -3% and -9% to a range of between +2% and -5%
versus 20222. The Free Cash Flow estimate is also increased from
around €750 million to around €900 million.
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 means at constant forex
and scope
- 2023Q1_Financialreport_EN_final
- 2023Q1-Solvay-release EN
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