Solvay nine months 2021 results
Strong profit due to high demand, price and mitigation actions overcoming significant inflationary pressure
|Third quarter||Nine months|
|Underlying (in € million)||2021||2020||2019||% org 21/20||% org |
|2021||2020||2019||% org |
|% org |
|FCF conversion ratio (LTM)||39.5%||54.8%||35.3%||-||-||39.5%||54.8%||35.3%||-||-|
“I want to thank our teams for another strong set of results. We saw continued demand recovery in most of our businesses and achieved record sales in Specialty Polymers. Indeed, our Q3 sales performance represents high single-digit growth versus 2019 despite slower dynamics in civil aerospace. Our relentless focus on cost and price actions allowed margins to remain stable comparatively to their pre-covid19 level. Looking forward, further actions are being implemented to account for the rising raw materials, energy and logistics costs. Despite these macro headwinds, we maintain our EBITDA guidance and upgrade our Free Cash Flow estimate by €50 million. As we execute on our GROW strategy, we continue to disproportionately allocate resources to our growth businesses and platforms in order to further enhance our capacity to generate superior and sustainable growth for the future.
I am also proud to announce today that Solvay has targeted carbon neutrality before 2050. We remain focused on delivering on our Solvay One Planet priorities and we will raise the bar in response to climate change. Today’s announcement represents a key step forward in our journey toward net-zero emissions.”
Full year underlying EBITDA estimate is maintained in the range of €2.2 to €2.3 billion notwithstanding the expectation that high energy prices will persist into Q4 2021. The free cash flow estimate is upgraded to around €800 million.
1 Free cash flow is free cash flow to Solvay shareholders from continuing operations
2 Barring additional deterioration related to another wave of Covid-19 in the fourth quarter.
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This press release may contain forward-looking information. Forward-looking statements describe expectations, plans, strategies, goals, future events or intentions. The achievement of forward-looking statements contained in this press release is subject to risks and uncertainties relating to a number of factors, including general economic factors, interest rate and foreign currency exchange rate fluctuations, changing market conditions, product competition, the nature of product development, impact of acquisitions and divestitures, restructurings, products withdrawals, regulatory approval processes, all-in scenario of R&I projects and other unusual items. Consequently, actual results or future events may differ materially from those expressed or implied by such forward-looking statements. Should known or unknown risks or uncertainties materialize, or should our assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly update or revise any forward-looking statements.
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