All 2013 data are restated for comparison purposes for the Group's application of IFRS 11 effective January 1st2014.
Furthermore, Solvay presents Adjusted Income Statement performance indicators that exclude non-cash Purchase Price Allocation (PPA) accounting impacts related to the Rhodia acquisition.
Following signature on July 30thof binding agreement to sell Eco Services, Solvay will report Eco Services businesses under Assets Held for Sale and discontinued operations as from Q3 2014. Consequently, Solvay will restate its 2013 Income and Cash Flow Statements, and 2014 Financial Statements, to reflect the discontinuation of the business no later than at the occasion of the Group's Q3 2014 earnings publication.
This announcement represents a "non-adjusting event" for the Q2 2014 financial statements.
H1 Highlights
Group net sales at € 5,192 m, up 2% yoy, with volumes 3%, forex (4)%, scope 3% and stable prices.
REBITDA at € 953 m, up 11% yoydriven by volume growth and excellence initiatives. Unfavorable foreign exchange rates and CER phase out weighed € (89) m;
Adjusted EBIT at € 551 m, up 33% yoy; Adjusted Result from continuing operations at € 260 m, up 27% yoy
Adjusted Net Income, Group share at € (186) m included INOVYNTM impairment versus € 235 m in 2013;
Free Cash Flow at € (8) m; net debt increased by € 503 m from YE'13 to € 1,644 m
Quote of the CEO
Solvay reported another set of solid results in the second quarter with double-digit operating profit growth and an encouraging underlying dynamic. Innovation-driven demand bolstered volumes at our growth engines Advanced Formulations and Advanced Materials, while Chemlogics beat our expectations. In addition, Group-wide excellence measures amply offset unfavorable foreign exchange rates and contributed to a significant margin expansion. This strong quarterly performance confirms that Solvay's transformation is delivering on all fronts. For the remainder of the year, the Group will focus on completing its current portfolio projects as demonstrated with Eco Services divestment announced today, and build on its growth and excellence momentum.
Outlook
Solvay reiterates its confidence that 2014 should show good operating performance. The Group confirms its guidance and expects high single-digit year-on-year REBITDA growth in 2014 at prevailing foreign exchange rates. This expectation reflects the eventual restatement in 2013 and 2014 reference periods for the discontinuation of Eco Service business.
Following the spinoff of its Specialty Chemicals business Syensqo in December 2023, Solvay SA is focused on providing chemical products and intermediates to customers in a broad range of consumer and industrial end-markets. Originally founded in 1863, Solvay's current portfolio is operated through five divisions: Soda Ash and Derivatives, Peroxides, Silica, Special Chem and Coatis. Solvay SA offers customer-proximate regional locations, large scale as well as competitive cost curve positioning due to the vertical integration in its main businesses, process technology and product know-how. The company has a balanced global footprint with 7 major R&I centres as well as 42 industrial sites in 20 countries across the world.