Solvay shares Q1 sales report highlights and 2024 full-year outlook for the company.
- Net sales for Q1 2024 at €1,201 million were down -11.9% organically versus Q1 2023, with positive volume impact, for the first time in seven quarters, in both Basic and Performance Chemicals segments. Prices decreased, mostly reflecting the lower energy and raw material costs.
- Underlying EBITDA of €265 million for the first quarter was -13.6% lower organically compared to a high Q1 2023, with negative Net Pricing partially offset by positive volume impact and lower fixed costs. The EBITDA margin remained solid at 22.1%, and improved sequentially.
- First cost savings initiatives: €19 million achieved in Q1 2024.
- Underlying net profit from continuing operations was €119 million in Q1 2024 vs. €187 million in Q1 2023.
- Free Cash Flow: €123 million in Q1 2024.
- ROCE was 19.8% in Q1 2024.
- Successful inaugural €1.5 billion bond issuance to refinance the bridge facility set up at the end of 2023.
- Underlying Net Debt at €1.6 billion, implying a leverage ratio of 1.4x.
Philippe Kehren, Solvay CEO shared, “I’m proud of our performance in the first quarter, despite challenging macroeconomic conditions, as we focused on what is under our control: capex, costs and cash. Certain areas of our business have shown promising momentum compared to the trough from late 2023, but we cannot call it a recovery yet. We are rapidly deploying cost-saving initiatives that have already started to deliver. Looking ahead, we maintain confidence in meeting our targets for 2024. Our simplified portfolio, clear operating model and strong focus on cash are great assets to position Solvay for sustained success in the years to come.”
2024 Outlook
Solvay confirms, for full-year 2024, its guidance of organic growth of the underlying EBITDA by -10% to -20% (translating into a range of €925 million to €1,040 million at a 1.10 EUR/USD exchange rate) and its guidance of Free Cash Flow to Solvay shareholders to be greater than €260 million.
