Solvay fourth quarter and full-year 2023 results
2024年3月13日 - 3:00PM
Solvay fourth quarter and full-year 2023 results
Regulated information
Solvay fourth quarter and full-year 2023 results
Solid financial performance thanks to the stronger first half,
and robust capital structure opening a new chapter of Solvay
Brussels, March 13, 2024 – 7:00 am CET
Highlights
- Solvay’s FY 2023 financial
statements reflect the Partial Demerger completed
on December 9, 2023, with the Specialty businesses transferred to
Syensqo classified as discontinued operations for 2023.
- New Solvay leadership
team fully committed to drive the transformation of the
company.
- Net sales for the
full year 2023 at €4,880 million were down -12.6% organically
versus 2022, driven primarily by volume declines. In Q4, net sales
decreased organically by -18.9% from both lower volumes and
prices.
- Underlying EBITDA
of €1,246 million for the full year 2023 was stable (+0.2%) on an
organic basis compared to a record 2022, with positive Net Pricing
and lower fixed costs offsetting the drop in volumes. EBITDA in the
fourth quarter was down -24.5% organically vs Q4 2022, fully driven
by lower volumes, with variable costs reduction offsetting price
erosion, while fixed costs decreased slightly.
- Underlying net
profit from continuing operations was €588 million in 2023
compared to €740 million in 2022.
- Free Cash Flow1 of
€561 million in 2023 (+17.3% vs. €479 million in 2022) resulting in
a record FCF conversion ratio of 45.4%, thanks to the strong EBITDA
performance and to the positive impact from working capital
variation.
- ROCE² was 20.4% in
2023, -2.5pp compared to 2022 as a result of lower profit.
- Solid balance sheet at the end of
December 2023, in line with the target capital
structure announced in November 2023, with an underlying
net debt of €1.5 billion, which translates into a leverage ratio of
1.2x.
- Total proposed gross
dividend of €2.43 per share, subject to shareholders’
approval during the next Ordinary General Meeting of May 28,
2024.
- Solvay continues to reduce its
GHG emissions (-19% vs 2021, scope 1 and 2).
- 2024 Outlook:
Organic growth of the underlying EBITDA of -10% to -20% compared to
restated 2023; Free cash flow of minimum €260 million (see page 4
of the press release for important information)
|
Fourth quarter |
Full year |
Underlying (in €
million) |
2023 |
2022 |
% yoy |
% organic |
2023 |
2022 |
% yoy |
% organic |
Net sales |
1,131 |
1,359 |
-16.8% |
-18.9% |
4,880 |
5,539 |
-11.9% |
-12.6% |
EBITDA |
238 |
335 |
-28.8% |
-24.5% |
1,246 |
1,359 |
-8.3% |
+0.2% |
EBITDA margin |
21.1% |
24.6% |
-3.6pp |
- |
25.5% |
24.5% |
+1.0pp |
- |
FCF |
8 |
-19 |
n.m. |
|
561 |
479 |
+17.3% |
|
FCF conversion ratio (LTM) |
|
|
|
|
45.4% |
36.5% |
+8.9pp |
|
ROCE |
|
|
|
|
20.4% |
22.9% |
-2.5pp |
|
Philippe Kehren, Solvay CEO
“Solvay is well positioned for its new chapter. We approach it
with clear objectives and determination to achieve them.
In 2023, despite macroeconomic challenges, we recorded
high-quality results and I want to express my gratitude to all
Solvay employees for this achievement. I also take this opportunity
to thank all the teams, both at Solvay and Syensqo, who worked so
hard on making the Partial Demerger a success.
Solvay already started to deploy its new strategy, supported by
a solid balance sheet and a clear cash usage prioritization. I’m
also very pleased with the significant progress we are making in
our ESG roadmap and we remain committed to executing our energy
transition, recognizing its critical importance for the planet, our
communities, our customers and our competitiveness. As we look
ahead into 2024, the macroeconomic environment remains uncertain,
yet we view the future with confidence as we deploy our new
operating model and carefully invest to deliver on our
promises.”
2024 outlook
Across its product portfolio, Solvay expects current demand
levels to continue over the next few months and, as such, expects
H1 2024 volumes to be broadly in line with H2 2023. At this point,
there is little visibility on the second half of the year, however
there are signs that the trend in the second half could improve.
Solvay expects Soda Ash prices over FY 2024 to be lower than FY
2023, consistent with the current market environment, which will
affect the business margin in 2024. Pricing trends across Solvay’s
other businesses are forecasted to be more resilient year on
year.
Lower energy and raw materials prices should offset some of the
negative pressure on the topline. More importantly, Solvay has
started to implement cost savings initiatives that will start to
deliver results in 2024.
For full year 2024, Solvay expects an organic growth of the
underlying EBITDA by -10% to -20% versus a high comparison base in
2023, especially in H1. This translates into a range of €925
million to €1,040 million at a 1.10 EUR/USD exchange rate.
The organic growth of the underlying EBITDA is calculated from a
2023 restated figure of €1,154 million (vs a reported figure of
€1,246 million).
Free cash flow to Solvay shareholders from continuing operations
is expected to be greater than €260 million, in line with the cash
usage prioritization presented during the Capital Market Day in
November 2023. It is supported by Solvay’s ability to manage its
capex and working capital to ensure the financing of its businesses
and the payment of dividends while keeping the strength of its
balance sheet intact.
Solvay remains fully committed to implement its strategic
roadmap and reconfirms its 2028 targets as communicated at the
Capital Markets Day of November 2023.
1 Free cash flow (FCF) is the free cash to Solvay
shareholders from continuing operations.2 ROCE calculated with
Capital employed as the average of the situation at the beginning
and at the end of the year (using Pro Forma information for 2022
and 2021) instead of the average of the situation at the end of the
last 4 quarters.
Safe harbor
This press release may contain forward-looking information.
Forward-looking statements describe expectations, plans,
strategies, goals, future events or intentions. The achievement of
forward-looking statements contained in this press release is
subject to risks and uncertainties relating to a number of factors,
including general economic factors, interest rate and foreign
currency exchange rate fluctuations, changing market conditions,
product competition, the nature of product development, impact of
acquisitions and divestitures, restructurings, products
withdrawals, regulatory approval processes, all-in scenario of
R&I projects and other unusual items. Consequently, actual
results or future events may differ materially from those expressed
or implied by such forward-looking statements. Should known or
unknown risks or uncertainties materialize, or should our
assumptions prove inaccurate, actual results could vary materially
from those anticipated. The Company undertakes no obligation to
publicly update or revise any forward-looking statements.
About Solvay
Solvay, a pioneering chemical company with a legacy rooted in
founder Ernest Solvay's pivotal innovations in the soda ash
process, is dedicated to delivering essential solutions globally
through its workforce of over 9,000 employees. Since 1863, Solvay
harnesses the power of chemistry to create innovative, sustainable
solutions that answer the world’s most essential needs such as
purifying the air we breathe and the water we drink, preserving our
food supplies, protecting our health and well-being, creating
eco-friendly clothing, making the tires of our cars more
sustainable and cleaning and protecting our homes. As a
world-leading company with €4.9 billion in net sales in 2023 and
listings on Euronext Brussels and Paris (SOLB), its unwavering
commitment drives the transition to a carbon-neutral future by
2050, underscoring its dedication to sustainability and a fair and
just transition. For more information about Solvay, please visit
solvay.com or follow Solvay on Linkedin.
Media relations Peter Boelaert+32 479 30 91 59
Laetitia Van Minnenbruggen+32 484 65 30 47 Kimberly King+ 1
470 464 4336 media.relations@solvay.com |
Investor relations Boris Cambon-Lalanne+32 471 55 37
49Geoffroy d’Oultremont+32 478 88 32 96 Vincent
Toussaint+33 6 74 87 85 65
investor.relations@solvay.com |
- Press release
- Financial report
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