Solvay 2023 third quarter results
November 03 2023 - 2:00AM
Solvay 2023 third quarter results
November 3, 2023 at 7 a.m. CEST
Solvay 2023 third quarter results
Strong cash generation and sustained margins in a
weak demand environment
Highlights
- Net sales in the third
quarter of 2023 were down by -20.3% organically versus a record Q3
2022 as expected due to -15% lower volumes (€-512 million) in a
weaker macro environment and -5% lower prices (€-188 million) in a
context of lower raw material costs and energy prices. On a
sequential basis, net sales were down -11% versus Q2. The volume
reduction was broad based across regions and businesses.
- Structural cost savings
for the first nine months of 2023 amounted to €63 million, bringing
the total savings since 2019 to €530 million.
- Underlying EBITDA of €702
million in Q3 2023 was down by -18.5% organically compared to a
record Q3 2022 driven by lower volumes, partly offset by €36
million in positive net pricing and €41 million in lower fixed
costs. Nine months EBITDA at €2,331 million is only down -1%
organically versus 2022, a clear indication that strong historic
pricing and cost discipline momentum is being maintained.
- The underlying EBITDA
margin of 25.6% in Q3 2023 was sustained relative to Q3 2022
despite lower volumes, while nine months EBITDA margin of 25.9% is
+1.3pp higher, mainly as a result of positive net pricing and cost
discipline.
- Underlying Net Profit was
€340 million in Q3 2023 compared to €509 million in Q3
2022.
- Free Cash Flow of €346
million in Q3 2023 resulted in a nine-month 2023 total of €1,027
million and a FCF conversion ratio of
39.4%.
- ROCE was 15.2%, broadly in
line with Q3 2022.
- Continued strengthening of the
balance sheet with underlying net debt at €2.8 billion,
which translated to a historic low leverage of 0.9x.
- As explained on page 2, an
interim dividend of €1.62 gross per share has been validated
by the Board of Directors, in line with historical interim dividend
policy to be paid by Solvay SA on January 17, 2024.
|
|
Third quarter |
|
Nine Months |
Underlying (in € million) |
|
2023 |
2022 |
% yoy |
% organic |
|
2023 |
2022 |
% yoy |
% organic |
Net sales |
|
2,747 |
3,609 |
-23.9% |
-20.3% |
|
9,001 |
10,141 |
-11.2% |
-9.6% |
EBITDA |
|
702 |
917 |
-23.5% |
-18.5% |
|
2,331 |
2,493 |
-6.5% |
-1.2% |
EBITDA margin |
|
25.6% |
25.4% |
+0.1pp |
- |
|
25.9% |
24.6% |
+1.3pp |
- |
FCF |
|
346 |
452 |
-23.4% |
- |
|
1,027 |
924 |
+11.1% |
- |
FCF conversion ratio (LTM) |
|
39.4% |
36.8% |
+2.6pp |
- |
|
39.4% |
36.8% |
+2.6pp |
- |
ROCE (LTM) |
|
15.2% |
15.4% |
-0.2pp |
- |
|
15.2% |
15.4% |
-0.2pp |
- |
Ilham Kadri, CEO
“This quarter marks the last reporting period
for 160 year-old Solvay as it exists today, as we prepare to
separate into two respected industry leaders. I’m so proud of what
our teams have accomplished again this quarter, with positive net
pricing and additional cost savings leading to higher EBITDA
margins and cash generation in the context of a weak demand
environment. It’s clear that we are truly a stronger company today
on all fronts. With our new leadership and board teams now in place
and the highest level of people engagement in the past 5 years at
76%, we are well equipped to embark on a new journey filled with
untapped opportunities, enhanced focus, and an exciting future for
all.”
2023 Outlook
Given the current volume momentum, we reconfirm
our full year guidance, at the lower end of the prior EBITDA
guidance range.
Register to the webcast
here Link
to financial report
- 2023Q3-Master PR_EN
- 2023Q3_Financialreport_EN Final
Solvay (EU:SOLB)
Historical Stock Chart
From Apr 2024 to May 2024
Solvay (EU:SOLB)
Historical Stock Chart
From May 2023 to May 2024