July 28, 2022 at 7 a.m. CEST
Solvay 2022 first half results
Solvay raises full year guidance following strong performance driven by higher volumes and prices
Highlights
| Second quarter | First half | |||||||||
| Underlying (in € million) | 2022 | 2021 | % yoy | % organic | 2022 | 2021 | % yoy | % organic | ||
| Net sales | 3,477 | 2,456 | +41.5% | +32.6% | 6,532 | 4,829 | +35.3% | +29.5% | ||
| EBITDA | 864 | 602 | +43.4% | +34.9% | 1,576 | 1,185 | +32.9% | +27.7% | ||
| EBITDA margin | 24.8% | 24.5% | +0.3pp | - | 24.1% | 24.5% | -0.4pp | - | ||
| FCF | 257 | 135 | n.m. | - | 473 | 417 | +13.3% | - | ||
| FCF conversion ratio (LTM) | 34.5% | 46.1% | -11.6pp | - | 34.5% | 46.1% | -11.6pp | - | ||
| ROCE (LTM) | 13.7% | 9.5% | +4.2pp | - | 13.7% | 9.5% | +4.2pp | - | ||
Ilham Kadri, CEO
“I am proud of how our businesses have continued to perform in a strong demand environment in the second quarter, again setting new records for the company. I wish to thank our global teams for their unwavering commitment and resilience. Demand for our high-value technologies was evident in the volume uplift in the quarter as we continue to offer solutions that support our customers needs. The pricing initiatives helped to offset the significant rise in costs and enabled us to sustain EBITDA margins, and we are grateful to our customers who value our technologies and services. Going forward, our business leaders will continue investing in our key growth areas while navigating the uncertain macroeconomic environment.”
2022 Outlook
Full year underlying EBITDA estimate is increased from the previously shared guidance of mid-to-high single digit growth to a range of 14% to 18% organic growth for the full year 2022. The Free Cash Flow estimate has increased from €650 million previously to around €750 million, overcoming significant increases in working capital. The estimates reflect modest declines in demand consistent with the generally negative economic outlook and do not assume significant discontinuities related to the supply of natural gas particularly in Europe.
1against a 2018 baseline ; incorporating 90% of the Group total scope 3 GHG emissions
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