In This Article:
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Organic Sales Growth: Increased by 4% year-on-year in Q3.
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EBITDA: EUR 259 million, stable compared to Q3 last year.
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EBITDA Margin: 22.4%, down 3.2 percentage points from last year.
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Cost Savings: EUR 31 million in additional savings in Q3 2024.
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Free Cash Flow: EUR 74 million in Q3, totaling EUR 320 million for the first nine months.
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Net Debt: Stable compared to the end of June, with leverage ratio well below 2 times.
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Basic Chemicals Segment Sales: Slightly up with 9% higher volumes, offset by a 7% negative price impact.
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Performance Chemicals Segment Sales: Up 9% compared to Q3 2023.
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Corporate EBITDA: Minus EUR 2 million in Q3, benefiting from structural cost savings.
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Guidance for 2024: Organic EBITDA growth expected between minus 10% and minus 15%, with a target of minus 10%.
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CapEx Expectations: EUR 300 million to EUR 350 million for the year.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Solvay SA (SLVYY) reported a 4% organic year-on-year sales increase in Q3, driven by higher volumes across most markets.
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The company achieved further structural cost savings from both variable and fixed costs, contributing to stable EBITDA performance.
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Solvay SA (SLVYY) delivered strong free cash flow in Q3, supporting essential investments and shareholder returns.
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The company inaugurated a significant sustainability project at its Green River plant, reducing greenhouse gas emissions by 8%.
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Solvay SA (SLVYY) secured a new licensing agreement in China for its peroxide business, expected to contribute positively to Q4 financials.
Negative Points
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The tragic incident at the Torrelavega site in Spain highlighted ongoing safety challenges within the company.
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Despite sales growth, the company did not experience any structural market recovery, maintaining a cautious outlook for Q4.
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EBITDA margin decreased by 3.2 percentage points year-on-year, reflecting pricing pressures, particularly in soda ash.
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The company faces uncertainty in the soda ash market, with no immediate recovery expected and potential volatility in seaborne markets.
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Solvay SA (SLVYY) anticipates increased corporate costs in 2025 and 2026 due to transitional service agreements and ERP rollout expenses.
Q & A Highlights
Q: Can you clarify the new guidance regarding peroxide and corporate costs? Is this a new development or was it included in the previous guidance? A: The peroxide license was expected but not secured, so it's new to the market but was integrated into our range. Regarding corporate costs, we realized it was difficult for analysts to distinguish between structural and non-structural savings, so we provided a clearer guidance. The savings are both structural and non-structural, and we are trending towards the high end of our guidance due to these savings.