SOLVAY SA 
Philippe Kehren
CEO
Alexandre Blum | |
First quarter 2024 results | CFO |
Earnings call |
May 7th, 2024
Forenote
This presentation 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 presentation 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&D 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.
This document does not constitute an offer to sell, or the solicitation of an offer to subscribe for or buy, any securities.
2
Introduction
Philippe Kehren
3
Safety at the heart of our operations
RIIR (Reportable Injuries and Illness per 200,000 work hours)
0.27 | 0.27 | 0.27 |
(47) | (45) |
4 | 3 | 3 | 2 | 4 | 4 | 3 | ||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 |
2022 | 2023 | 2024 | ||||||
H-RIIR | RIIR |
4
Q1 2024 results
Strong FCF supported by resilient EBITDA, cost and capex discipline
€1.2bn | €265m | €123m | €1.6bn | 19.8% |
NET SALES | Underlying EBITDA | FCF1 | Underlying Net Debt | ROCE2 |
-12% organic | -14% organic | 1.4x leverage2 | last 12 months | |
22.1% EBITDA margin |
5 | 1. To Solvay shareholders from continuing operations |
2. From continuing operations |
Microscopic view of
Alve-One®
Enabling safer and more sustainable foamed end-products for automotive, footwear, building and construction, consumer goods.
6
Key Q1 accomplishments
to drive us forward
- Capacity expansion in France, Italy linked to SOLVAir® bicarbonate and in China for photovoltaic grade H2O2
- New bio-based carbon neutral Augeo® for the Americas
- New sustainable blowing agent Alve-OneⓇ
- First cost savings initiatives already bearing fruit
- Inaugural €1.5bn bond placement , strengthening our balance sheet
Financials
Alexandre Blum
7
€1 201m in Q1 2024
VS
€1 355m in Q1 2023
€34m from volumes
positive for the first time in 7 quarters
Negative pricing
mostly reflecting the lower energy and raw material costs
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Q1 Sales bridge
1,355 | 1,363 | 34 | -196 | |
Scope | Forex | Volume | 1,201 | |
conversion | & mix |
Price
-12% | ||
-11% | ||
Q1 2023 | Q1 2023 | Q1 2024 |
Sales | Sales | Sales |
(constant scope | ||
and currency) |
Q1 EBITDA bridge
MARGIN | -4.8pp | MARGIN |
26.9% | 22.1% | |
365 -56
307 | 9 | -79 | |||||
Scope | Forex | Volume | 20 | 8 | 265 | ||
conversion | & mix | ||||||
Net | Fixed | Other | |||||
pricing | costs | ||||||
-14% | |||||||
-27% | |||||||
Q1 2023 | Q1 2023 | Q1 2024 | |||||
EBITDA | EBITDA | EBITDA | |||||
(constant scope | |||||||
and currency) |
€265m in Q1 2024
VS
€365m in Q1 2023
Volumes growth
for the first time in 7 quarters
Negative net pricing
mostly from soda ash other businesses very resilient
Lower fixed costs
cost discipline in challenging environment structural savings initiatives
9
Basic Chemicals results
Soda Ash & Deriv.
Peroxides
Net Sales
EBITDA
EBITDA Margin
Q1 2024 (€m) | % YoY | % YoY organic |
493 | -18% | -18% |
222 | +13% | -6% |
715 | -10% | -15% |
202 | -19% | -22% |
28.2% |
Q1 Highlights
- Soda Ash & Derivatives : lower sales driven by prices. Flat soda ash volumes with seaborne market volume offsetting lower demand in container glass applications in Europe and North America. Bicarbonate volumes up in food and pharma markets.
- Peroxides : consolidation of the Peroxidos do Brasil sales mechanically increased top line. Though organically, sales decreased from lower pricing (lower energy cost environment), offset by recovery in volumes in most end markets, especially in Europe.
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Disclaimer
Solvay SA published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 May 2024 01:33:06 UTC.
