Solvay records record third-quarter sales, prepares to split into two separate companies
Latest News: On November 3rd, Solvay announced its results for the third quarter and first nine months of 2022. In the third quarter, Solvay achieved net sales of 3.609 billion euros, a year-on-year increase of 29.5%, EBITDA of 917 million yuan, a year-on-year increase of 39.8%, and free cash flow of 452 million euros, a year-on-year increase of 63.8%.
Solvay said the 3.609 billion net sales set a new record for quarterly sales figures. The 29.5% year-on-year increase was mainly driven by price increases, and total sales were flat compared to the same period last year. In the first nine months of 2022, sales also increased by 29.5% year-on-year, driven by price increases and sales growth.
Basic earnings before interest, taxes, depreciation and amortization (EBITDA) reached a new high in the third quarter, reaching 917 million euros, an organic increase of 39.8% compared to the same period last year. The price increase successfully offset the substantial increase in the quarter. the cost of. EBITDA for the first nine months of 2022 increased organically by 31.9% compared to the same period last year.
Free cash flow climbed to EUR 452 million in the third quarter of 2022, pushing total free cash flow to EUR 924 million in the first nine months of the year and achieving 14 consecutive quarters of positive free cash flow. The free cash flow conversion rate for the trailing 12 months was 36.8%.
Return on Capital Employed (ROCE) reached a new record of 15.4% and 11.4% at the end of 2021.
The EBITDA margin reached a new high in the third quarter, up 2.1 percentage points to 25.4% compared to the same period in 2021; continued price increases offset raw materials, energy and logistics The impact of rising costs.
Underlying profit in the third quarter of 2022 amounted to EUR 509 million, 86.1% higher than the same period last year.
Underlying debt was reduced to EUR 3.8 billion and leverage to 1.2 times, an all-time low, further strengthened the balance sheet.
The Board of Directors has approved a Interim dividend of €1.54 per share, to be paid on January 18, 2023.
Solvay CEO Ilham Kadri
“I couldn’t be more proud of what our people did here this quarter. We were once again setting records in terms of sales, EBITDA and ROCE, which is a testament to the hard work of the team and what really happened over the past three and a half years. Shift. We are focused on continually bringing innovation to the market, measurable value to tailgate customers, and we are prioritizing investments in strategic growth areas. Today we announced the expansion of North American production of high-performance polymers for batteries, which is another example of our commitment to serving the growing electrification trend. I couldn’t be happier with these achievements and excited about the bright future as we move forward with our plans to split into two separate, strong companies.”
According to the performance data of the third quarter and the first nine months, Solvay has raised its 2022 full-year EBITDA estimate to an organic growth of about 28%; at the same time, Solvay will increase its full-year free cash flow The estimate was raised to around 1 billion euros from 750 million euros, including a potential capital investment of 1 billion euros.