(Reuters) – Solvay reported a 24.5% fall in fourth-quarter underlying operating profit on Wednesday, with the Belgian chemicals group highlighting falling sales volumes and prices, a trend expected continue in 2024.
In a press release, Managing Director Philippe Kehren spoke of “macroeconomic challenges” in 2023 and expects that “the macroeconomic environment (remains) uncertain” in 2024.
The company reported underlying adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of €238 million for the fourth quarter, compared to €335 million in 2022.
For the full year, operating profit remained stable (+0.2% organically), although annual net sales decreased 12.6% organically to 4.88%. billion euros due to lower volumes, “as a result of weaker demand across all end markets,” the company said.
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“Solvay expects current demand levels to be maintained over the coming months and, therefore, volumes in the first half of 2024 to be broadly in line with those of the second half of 2023,” the company said. company in a press release.
The group forecasts underlying Ebitda in 2024 down by around 10% to 20% compared to 2023, in a range of 925 million euros to 1.04 billion euros.
Analysts expected underlying operating profit of 970 million euros for the current year, according to a Vara Research consensus.
(Report by Gaëlle Sheehan; French version Lina Golovnya, edited by Kate Entringer)
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