Solvay announced second quarter 2024 results: sequentially improved EBITDA and margin with solid cash performance supported by cost savings initiatives. “We continued to deliver a solid performance in the second quarter, in what continues to be a challenging environment“, commented Philippe Kehren, Solvay CEO. “Our focus on deploying our cost-saving initiatives was key, and the €46 million of structural cost savings achieved so far are a testimony of the hard work of our teams. The new operating model is becoming a reality and will make our organization more agile and efficient. I am also particularly happy to see our employees embracing the change and playing an active role in our transformation.
Thanks to our proactivity and prudence in the first six months, we are now in a position to tighten our guidance and accelerate our investments in digitalization and in our future growth“.
- Net sales in Q2 2024 stabilized sequentially reaching €1,194 million.
Net Sales were down -6.7% organically versus Q2 2023, with a positive impact from volumes for the second consecutive quarter, while prices were down year over year. - Underlying EBITDA in Q2 2024 increased sequentially by 2.6% reaching €272 million while the EBITDA margin improved sequentially for the second quarter in a row reaching 22.8%.
Underlying EBITDA in Q2 was -17.2% lower organically compared to a record Q2 2023, with negative Net pricing partially offset by positive volume impact and further fixed costs improvements. - Structural cost savings initiatives delivered solid results, with €46 million in H1 2024, and are expected to reach €80 million for the full year.
- Underlying net profit from continuing operations was €116 million in Q2 2024 vs. €211 million in Q2 2023.
- Free Cash Flow1 was strong at €120 million in Q2 2024, from solid EBITDA performance combined with continued prudence on Capex and discipline on working capital.
- ROCE was 17.6% in Q2 2024.
- Underlying Net Debt at €1.6 billion, implying a leverage ratio of 1.5x.
- 2024 Outlook: Solvay tightens its guidance of organic growth of the underlying EBITDA to “-10% to -15%”. The guidance for Free Cash Flow1 is upgraded to “higher than €300 million”, including Capex between €300 million and €350 million in 2024.