May 4, 2022 at 7 a.m. CEST
Solvay first quarter 2022 results
26% sales growth driven by strong pricing leads to record EBITDA
- Net Sales in the first quarter of 2022 were over €3 billion, a new quarterly record, up +26.1% organically versus Q1 2021, with double-digit sales growth in every business and all regions driven by successful price actions (+20% or €475 million) and volume growth (+6% or €157 million).
- Structural cost savings of €22 million were achieved in Q1 2022, totaling €410 million since 2020, and on track to achieve our €500 million mid-term target ahead of plan.
- Record underlying EBITDA in Q1 2022 of €712 million was +20% higher on an organic basis. All three segments delivered double-digit EBITDA growth driven by price and volumes. Price gains in the quarter more than offset €369 million of inflationary cost increases. Solutions was up +35%, with particular strength in Novecare, while Materials was up +21%, and Chemicals was up +15%.
- The underlying EBITDA margin in Q1 2022 was 23.3%, similar to full year 2021 level as strong pricing actions offset inflation headwinds.
- Underlying Net Profit was €369 million in Q1 2022, up +54% compared to Q1 2021.
- Free Cash Flow in Q1 2022 amounted to €216 million, representing a 32.9% conversion ratio, despite higher working capital resulting from strong sales growth. Working capital discipline was maintained throughout the quarter.
- All time record ROCE at 12.3%, +477 basis points above the prior year.
- Solvay launched its fourth growth platform, dedicated to developing innovative solutions using renewable feedstocks and biotechnology, supporting our sustainability objectives by creating more circular solutions.
|Underlying, (in € million)||Q1 2022||Q1 2021||% yoy||% organic|
|FCF to shareholders||216||282||-23.6%||-|
|FCF conversion ratio (LTM)||32.9%||54.8%||-21.9pp||-|
“I am pleased to report another set of record results, with strong performance across every business segment. The critical and differentiated solutions that we provide to our customers enabled us to increase prices and more than compensate for the sharp cost increases in raw materials and energy. This performance, together with our continued focus and cash discipline, contributed to a solid Free Cash Flow generation. This enables us to invest in innovation and capacity expansions, to support our customers globally and accelerate topline growth across the midterm. I’m also proud of our returns, which improved significantly versus one year ago thanks to our cost and portfolio actions.”
2022 Outlook Increased
Full year underlying EBITDA is now estimated to grow by mid to high single-digits, and Free Cash Flow to shareholders is estimated to exceed €650 million.