Solvay S.A.: Solvay third quarter 2024 results

Press release - Regulated information published on November 6, 2024, at 7:00 a.m. CET

Sound financial performance with acceleration of costs savings
Confirmation of the full year 2024 EBITDA and FCF guidance

Highlights

• Net sales in Q3 2024 amounted to €1,156 million, up +3.9% organically versus Q3 2023, with a positive impact from volumes for the third consecutive quarter, while prices were down year on year.
• Underlying EBITDA in Q3 2024 was stable at €259 million (-0.3% year on year organically), with a moderate negative Net pricing being offset by positive volume impact. EBITDA margin reached 22.4%.
• Structural cost savings initiatives delivered €77 million in the first nine months of 2024.
• Underlying net profit from continuing operations was €108 million in Q3 2024 vs. €157 million in Q3 2023.
• Free Cash Flow¹ amounted to €74 million in Q3 2024 (€320 million in 9M), from the solid EBITDA performance, while Capex ramped up to €84 million in Q3 2024 (€192 million in 9M).
• ROCE was 17.3% in Q3 2024.
• Underlying Net Debt stood at €1.5 billion, implying a leverage ratio of 1.5x.
• The Board of Directors validated an interim dividend of €0.97 gross per share, payable on Jan. 22, 2025.
• 2024 Outlook: Solvay confirms its EBITDA and Free Cash Flow¹ guidance for 2024, and expects the underlying EBITDA to be at the high end of the "-10% to -15%" organic growth range.

	Third quarter				Nine Months
Underlying (in € million)	2024	2023	% yoy	% organic	2024	2023	% yoy	% organic
Net sales	1,156	1,120	+3.2%	+3.9%	3,552	3,749	-5.3%	-5.4%
EBITDA	259	286	-9.7%	-0.3%	796	1,008	-21.0%	-11.1%
EBITDA margin	22.4%	25.6%	-3.2pp	-	22.4%	26.9%	-4.5pp	-
FCF1	74	167	-55.7%	-	320	553	-42.1%	-
ROCE					17.3%	N/A	n.m	-

Note: 2023 figures were restated to reflect the changes mentioned in the Financial performance introduction.

Philippe Kehren, Solvay CEO

"The evolution of our business in the third quarter was in line with our expectations. The first half of the year benefitted from opportunistic sales and restocking effects, while, as anticipated, we have not observed any improvement in the third quarter of 2024. Despite these market conditions, our financial performance demonstrates resilience and our ability to maintain solid profits. This has been achieved thanks to the acceleration of cost-saving initiatives and the unwavering commitment of our employees.
I am also very proud of our most recent energy transition project in Green River (US). Just a few months after exiting coal, this new step further strengthens Green River's position as a U.S. benchmark for sustainable soda ash production and marks a key step in reducing our global carbon footprint.
Looking ahead to the fourth quarter, we expect the trends of the first nine months to continue, with some potential seasonal effects toward year-end.
As we prepare for 2025, we are ready to adapt to evolving market conditions while focusing on our transformation journey and operational efficiency."

2024 outlook

Solvay expects the trends of the first nine months to continue into the last quarter of 2024, with some potential seasonality effects around year-end.

In that context, Solvay confirms its full year underlying EBITDA guidance of "-10% to -15%" organic growth (or €975 million to €1,040 million, at a 1.10 EUR/USD exchange rate), and expects to be at the high-end of the range. This is supported by the resilience of its businesses and the cost savings that will exceed the target of €80 million for the full year, as the company has been able to accelerate initiatives that were expected to start in 2025.

Solvay keeps its guidance of Free Cash Flow¹ for 2024 at above €300 million, as Capex in the last quarter should further accelerate and reach €300 million to €350 million in 2024.

Financial calendar

• Link to Solvay's financial calendar (https://www.solvay.com/en/financial-calendar-events-presentations)

Details of analysts and investors conference call

• Time: November 6, 2024 - 2pm CET
• Registration: register to the webcast here (https://www.solvay.com/en/investors/financial-calendar-events-presentations/webcasts-podcasts-presentations).

Contacts

Media relations	Investor relations
Peter Boelaert [phone] Laetitia Van Minnenbruggen [phone] Valérie Goutherot [phone] [e-mail] (mailto:[e-mail])	Boris Cambon-Lalanne [phone] Geoffroy d'Oultremont [phone] Vincent Toussaint [phone] [e-mail] (mailto:[e-mail])

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 use, 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. Solvay's unwavering commitment drives the transition to a carbon-neutral future by 2050, underscoring its dedication to sustainability and a fair and just transition. As a world-leading company with €4.9 billion in net sales in 2023, Solvay is listed on Euronext Brussels and Parisor follow Solvayon Linkedin.

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.

¹ Free Cash Flow (FCF) here is the free cash to Solvay shareholders from continuing operations.

Attachments

• Press release (https://ml-eu.globenewswire.com/Resource/Download/49d64fbd-17d3-4947-a716-9fb780dc15c2)
• Financial report (https://ml-eu.globenewswire.com/Resource/Download/92e983b6-e80d-4a96-bc88-d9cad623bf21)