Solvay Q1 Report 2023
Solvay first quarter 2023 results
Strong pricing drives +22% organic EBITDA growth in the quarter
Upgraded full-year EBITDA and FCF outlook
Highlights
- Net sales in the first quarter of 2023 grew +2.0% organically to €3.2 billion versus Q1 2022 driven by higher prices (+14%), overcoming lower volumes (-12%) due to softer demand across several end markets including batteries for auto, construction, and consumer-driven industries. Pricing measures of €421 million more than offset the €127 million impact from variable cost inflation resulting in €294 million of net price benefit in Q1 2023.
- Underlying EBITDA in Q1 2023 of €839 million was up +22.0% versus Q1 2022 on an organic basis. Growth in Materials (+35%) and Chemicals (+19%) more than offset the decrease in Solutions (-9%). Sequentially, Q1 2023 EBITDA was up +14% versus Q4 2022.
- Underlying EBITDA margin in Q1 2023 reached a new record level at 26.5%, +320 basis points higher than in Q1 2022.
- Underlying net profit was €460 million in Q1 2023, up +24.5% compared to Q1 2022.
- Free cash flow generation of €125 million in Q1 2023 reflects high profits, investments in working capital and capital expenditures, and the benefit of a settlement of litigation.
- Simplified the portfolio with the sale of its 50% stake in RusVinyl, using proceeds to reduce net debt and further strengthen the balance sheet. The leverage ratio is at an historic low of 1.0x. •
- ROCE for Q1 2023 reached a record level at 16.7%.