(AOF) – Solvay lost 1.35% to 99.92 euros after revealing an Ebitda of 702 million euros in the third quarter of 2023, an organic decline of 18.5% due to the decline in volumes. The chemical group’s turnover shows an organic decline of 20.3% to 3.09 billion euros, “in a sluggish macroeconomic environment”. Volumes fell by 15% (-512 million euros) and prices by 5% (-188 million euros). The chemist is now targeting Ebitda growth for 2023 “at the bottom of the range of the previous forecast”.
At the beginning of August, the chemist indicated that it was counting on organic growth in Ebitda of between a decline of 5% and an increase of 2% in 2023, specifying that “the upper limit assumed a modest recovery in volumes” in the second half of 2023.
Solvay specifies that this fall in results comes “in a context of falling raw material and energy costs”, and emphasizes that its underlying Ebitda margin of 25.6% in the 3rd quarter was “maintained” over a year despite lower volumes, while the nine-month Ebitda margin of 25.9% is 1.3 points higher, “mainly due to positive net pricing and cost discipline”.
“This quarter marks a historic milestone for Solvay in its 160-year adventure since it is the last quarter where we report the Group’s results before its separation into two respected chemical leaders,” says boss Ilham Kadri. “Despite the challenging macroeconomic environment, we improved our Ebitda margin and cash generation, thanks to positive net pricing and additional cost reductions.”
© 2023 Agence Option Finance (AOF) – All reproduction rights reserved by AOF. AOF collects its data from the sources it considers the safest. However, the reader remains solely responsible for their interpretation and use of the information made available to them. The reader must therefore hold AOF and its contributors harmless from any claim resulting from this use. Agence Option Finance (AOF) is a brand of the Option Finance group
Did you like this article ? Share it with your friends using the buttons below.
