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• Revenue: EUR4.7 billion, a decrease of 4% compared to 2023.

• EBITDA: EUR1.62 billion, down 8% year-on-year.

• Free Cash Flow: EUR361 million, with a free cash flow conversion ratio of 34%.

• CapEx: EUR355 million for the year.

• Cost Savings: EUR110 million, exceeding the target.

• Net Financial Debt: EUR1.5 billion, with a leverage ratio of 1.5x EBITDA.

• Dividend: Proposed gross dividend of EUR2.43 per share.

• EBITDA Margin: 29% for Basic Chemicals segment in Q4.

• Performance Chemicals EBITDA Margin: Increased to 15% in Q4.

• Warning! GuruFocus has detected 6 Warning Signs with SLVYY.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Solvay SA (SLVYY) successfully navigated an organizational shift, engaging 9,000 employees in a new era post-spinoff.

• The company exceeded projected cost savings for the year, achieving significant structural savings in manufacturing plants and operations.

• Solvay SA (SLVYY) solidified its financial position with a successful EUR1.5 billion bond issuance.

• The company delivered a solid set of financial results, surpassing initial projections with an EBITDA of EUR1.052 billion.

• Solvay SA (SLVYY) maintained its greenhouse gas emissions reduction despite increased production levels, showcasing its commitment to sustainability.

Negative Points

• Solvay SA (SLVYY) reported tragic safety incidents with the loss of three contractors in 2024, highlighting ongoing safety challenges.

• The company experienced a 4% decline in net sales in 2024, primarily due to lower prices in the soda ash business.

• Underlying EBITDA decreased by 8% year-on-year, reflecting challenges in maintaining profitability.

• The macroeconomic context remains challenging, with no significant volume recovery expected in main end markets for 2025.

• Solvay SA (SLVYY) faces volatility in energy prices and tariffs, adding uncertainty to financial projections.

Q & A Highlights

Q: Can you provide insights on the recent consolidation in the soda ash market and its implications? A: Philippe Kehren, CEO, explained that the acquisition of Genesis by We Soda does not add new capacity to the soda ash market, thus not altering the supply-demand balance. It highlights the essential nature of the market, where existing capacity expansions are more cost-effective than building new greenfield units. Solvay remains focused on both synthetic and natural soda ash, with the e.Solvay project offering potential for greenfield developments in regions lacking production.

Q: What is the expected payback period for growth CapEx investments? A: Philippe Kehren, CEO, noted that large investments like those in soda ash typically have a payback period of 4-5 years, aligning with market needs. Smaller, targeted investments in high-growth areas like bicarbonate and electronic-grade hydrogen peroxide offer quicker paybacks, often within a few years.