Solvay Confirms Surge in 3Q Sales, Earnings; Lifts Free Cash-Flow View
November 03 2022 - 2:29AM
Dow Jones News
By Joshua Kirby
Solvay SA said Thursday that it expects higher free cash-flow
for the year after confirming strong growth in earnings and sales
in the third quarter and higher expected earnings for the year.
The Belgian chemicals company now expects FCF at some 1 billion
euros ($987.4 million) in 2022, from a previous target of around
EUR750 million. The company backed higher guidance of around 28%
annual growth in earnings before interest, taxes, depreciation and
amortization, set alongside preliminary third-quarter results
published toward the end of last month.
Solvay confirmed the quarterly figures, which saw sales rise 30%
on the year to EUR3.61 billion thanks to higher prices amid largely
flat volumes, and underyling Ebitda rise 40% to EUR917 million
thanks to pricing power that offset cost inflation. The Ebitda
margin rose more than two percentage points to 25.4%, Solvay
said.
Underyling net profit meanwhile nearly doubled to EUR509
million, Solvay said.
"I could not be more... excited about our bright future as we
progress with our plan to separate into two independent, strong
companies," Chief Executive Ilham Kadri said, referring to the plan
set out earlier this year to break Solvay up into two separately
listed companies by the middle of next year.
Write to Joshua Kirby at joshua.kirby@wsj.com;
@joshualeokirby
(END) Dow Jones Newswires
November 03, 2022 02:14 ET (06:14 GMT)
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