Solvay Q1 Report 2022

Solvay first quarter 2022 results

26% sales growth driven by strong pricing leads to record EBITDA

Highlights

• Net Sales in the first quarter of 2022 were over €3 billion, a new quarterly record, up +26.1% organically versus Q1 2021, with double-digit sales growth in every business and all regions driven by successful price actions (+20% or €475 million) and volume growth (+6% or €157 million).
• Structural cost savings of €22 million were achieved in Q1 2022, totaling €410 million since 2020, and on track to achieve our €500 million mid-term target ahead of plan.
• Record underlying EBITDA in Q1 2022 of €712 million was +20% higher on an organic basis. All three segments delivered double-digit EBITDA growth driven by price and volumes. Price gains in the quarter more than offset €369 million of inflationary cost increases. Solutions was up +35%, with particular strength in Novecare, while Materials was up +21%, and Chemicals was up +15%.
• The underlying EBITDA margin in Q1 2022 was 23.3%, similar to full year 2021 level as strong pricing actions offset inflation headwinds.
• Underlying Net Profit was €369 million in Q1 2022, up +54% compared to Q1 2021.
• Free Cash Flow in Q1 2022 amounted to €216 million, representing a 32.9% conversion ratio, despite higher working capital resulting from strong sales growth. Working capital discipline was maintained throughout the quarter.
• All time record ROCE at 12.3%, +477 basis points above the prior year.
• Solvay launched its fourth growth platform, dedicated to developing innovative solutions using renewable feedstocks and biotechnology, supporting our sustainability objectives by creating more circular solutions.