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Syensqo - Fourth Quarter and Full Year 2024 Results

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Syensqo SA
Syensqo SA

SYENSQO FOURTH QUARTER AND FULL YEAR 2024 RESULTS

5% YEAR-ON-YEAR EBITDA GROWTH IN Q4 & STRONG CASH FLOW GENERATION IN A CHALLENGING MARKET ENVIRONMENT

Q4 2024 Highlights

  • Net sales of €1.6 billion increased by 2% year-on-year organically, driven by higher volumes (+3%), partially offset by lower pricing (-1%); On a sequential basis, pricing increased by 1% compared to Q3 2024;

  • Gross profit of €482 million was approximately flat year-on-year including net pricing impact of €-26 million, resulting in gross margin of 30.2%;

  • Underlying EBITDA of €298 million increased by 5% year-on-year organically, driven by growth in both the Materials and Consumer & Resources segments; EBITDA margin of 18.6% increased by approximately 60 basis points organically;

  • Underlying net profit of €76 million;

  • Operating cash flow of €345 million increased by 77% year-on-year; Free cash flow of €159 million;

  • Share buyback program: repurchased and cancelled 843K shares, or €64 million

FY 2024 Highlights

  • Net sales of €6.6 billion declined by 3% year-on-year organically driven by lower pricing (-4%), partially offset by higher volumes (+1%) with improved net sales momentum in the second half; double digit growth in Composite Materials;

  • Gross profit of €2.2 billion included net pricing impact of €-97 million, resulting in gross margin of 33.8%;

  • Underlying EBITDA of €1.4 billion, in-line with expectations; EBITDA margin of 21.5%;

  • Underlying net profit of €553 million;

  • Operating cash flow of €841 million, with cash conversion of 82%1; Free cash flow 1 of €390 million;

  • Balance sheet: net debt of €1.86 billion with leverage ratio of 1.3x;

  • Increased shareholder returns: €300 million share buyback program announced at the end of Q3; Dividend for 2024 of €1.62 (payout ratio of 31%) will be proposed to the 2025 Annual General Meeting by the Board of Directors

Dr. Ilham Kadri, CEO

“2024 was a milestone year for Syensqo. With our sharper focus and a deeper understanding of our customers’ needs, we now have more clarity around how we will accelerate our innovation to outperform our markets and increase returns. We also used our balance sheet strength to increase direct shareholder returns, through the board’s proposed dividend payment as well as the ongoing share buyback program.”

“Our Q4 performance saw us return to year-on-year EBITDA growth, coupled with strong cash flow generation. This was achieved against the backdrop of macroeconomic softness and ongoing market uncertainties experienced across our sector. In this context, we will remain focused on executing initiatives in 2025 that we can control, accelerating cost actions to support our profitability, further refining our disciplined approach to capital allocation, and taking steps to unlock value. Underpinned by our strong balance sheet, we will also continue to balance cashflow generation and attractive growth investments with shareholder returns.”