Record free cash flow and cost delivery

Highlights  

  • Net Sales were €6,751 million in 9 months 2020, down 11.9% organically due to lower volumes primarily in aero, auto, oil & gas and construction markets. Third quarter sales of €2,103 million were down 14.3% organically versus 3Q 2019, with some demand improvement in September.
  • Cost savings reached €260 million year to date, of which €130 million is structural, with €90 million of savings achieved in Q3.
  • Underlying EBITDA for nine months was €1,481 million, down 16% organically versus 9M 2019. EBITDA in the third quarter 2020 of €473 million was up sequentially by 7.7% versus Q2 and the decline was contained to 17% organically versus Q3 2019 as cost reductions and sustained pricing significantly offset volume declines. EBITDA margin improved to 22.5%, illustrating the quality of earnings.
  • Underlying Net Profit was €522 million in 9M 2020, with €176 million in the third quarter.
  • Strong Free Cash Flow of €801 million year to date was more than double the prior year period, with €366 million delivered in the third quarter. The strong performance was predominantly driven by disciplined working capital management and value creation initiatives and contributed favorably to debt deleveraging.
  • An interim dividend of €1.50 gross per share, flat versus last year, will be payable on January 18, 2021, reflecting the high level of free cash flow generated in 2020.
Q3-2020-Results-Highlights

 

Our relentless focus on cash and cost in this challenging environment resulted in record cash generation of €801 million through the nine month period. Actions taken across the organization to reduce costs strengthened delivery with higher Q3 EBITDA relative to the second quarter despite the continued headwinds in some key end markets. I would like to thank our employees for their mobilization that delivered the strong performance. We have selectively resumed investments and are working closely with our customers to commercialize new innovations.

Ilham Kadri, Solvay CEO

Outlook1 for 2020

Full Year underlying EBITDA is estimated to be between €1,890 million and €1,970 million, and FCF is estimated to be around €900 million, a 50% improvement relative to last year.

1Barring further deterioration related to a second wave of Covid-19

 

Conference call details

The conference call to analysts and investors will start at 2:30pm CET.

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Sobre o Grupo Solvay

A Solvay é uma empresa de ciências cujas tecnologias oferecem benefícios em muitos aspectos da nossa vida cotidiana. Com 24.100 empregados em 64 países, a Solvay une pessoas, ideias e elementos para reinventar o progresso. O Grupo busca criar valor compartilhado sustentável para todos, principalmente por meio do programa Solvay One Planet, elaborado em torno de três pilares: proteger o clima, preservar recursos e promover uma vida melhor. As soluções inovadoras do Grupo contribuem para produtos mais seguros, limpos e sustentáveis, que podem ser encontrados em residências, alimentos e bens de consumo, aviões, carros, baterias, dispositivos inteligentes, equipamentos de saúde, sistemas de purificação de água e ar. Fundada em 1863, a Solvay está hoje entre as três principais empresas do mundo na maioria de suas atividades e obteve vendas líquidas de € 10,2 bilhões em 2019. A Solvay está listada na Euronext Brussels (SOLB) e Paris e nos Estados Unidos, onde ações (SOLVY) são negociadas através de um programa de ADR Nível I. No Brasil, a Solvay também atua com a marca Rhodia. Saiba mais em www.solvay.com