Solvay Q3 Report 2023

Solvay 2023 third quarter results.

Strong cash generation and sustained margins in a weak demand environment

Highlights

• Net sales in the third quarter of 2023 were down by -20.3% organically versus a record Q3 2022 as
  expected due to -15% lower volumes (€-512 million) in a weaker macro environment and -5% lower prices (€-188 million) in a context of lower raw material costs and energy prices. On a sequential basis, net sales were down -11% versus Q2. The volume reduction was broad-based across regions and businesses.
• Structural cost savings for the first nine months of 2023 amounted to €63 million, bringing the total savings since 2019 to €530 million. Underlying EBITDA of €702 million in Q3 2023 was down by -18.5% organically compared to a record Q3 2022 driven by lower volumes, partly offset by €36 million in positive net pricing and €41 million in lower fixed costs. Nine months EBITDA at €2,331 million is only down -1% organically versus 2022, a clear indication that strong historic pricing and cost discipline momentum is being maintained.
• The underlying EBITDA margin of 25.6% in Q3 2023 was sustained relative to Q3 2022 despite
  lower volumes, while nine months EBITDA margin of 25.9% is +1.3pp higher, mainly as a result of
  positive net pricing and cost discipline.
•  Underlying Net Profit was €340 million in Q3 2023 compared to €509 million in Q3 2022.
  Free Cash Flow of €346 million in Q3 2023 resulted in a nine-month 2023 total of €1,027 million and a FCF conversion ratio of 39.4%.
• ROCE was 15.2%, broadly in line with Q3 2022.