Solvay raises full year guidance following double-digit sales and EBITDA growth in Q2 2021

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July 29, 2021 at 7 a.m. CEST

Solvay 2021 first half results

Solvay raises full year guidance following double-digit sales and EBITDA growth in Q2 2021

Highlights

• Net sales in the second quarter of 2021 were up +20% organically versus Q2 2020 and back to 2019 levels in most markets with particularly strong demand in automotive, electronics and building industries. Excluding composites and oil & gas, sales were up +22% versus Q2 2020 and up +6% versus Q2 2019.
• Structural cost savings of €51 million were delivered in Q2, totaling €131 million in the first half 2021, on track to meet the projected annual savings of €200 million.
• Underlying EBITDA of €602 million in Q2 2021 was up +47% year on year on a comparable scope and foreign exchange basis, reflecting strong demand and continued cost reductions. First half 2021 EBITDA is 5% higher than first half 2019.
• EBITDA margin of 24.5% is 4.3 percentage points higher than Q2 2020 as a result of the higher volumes and structural cost measures, though rising raw material, energy and logistics costs impacted Q2 by approximately €50 million.
• Underlying Net Profit was €276 million in Q2 2021, more than double the delivery in Q2 2020.
• Free Cash Flow was €135 million in Q2 2021 reflecting the expected seasonal payments of employee bonuses and higher financial charges. Excluding scope and one-time benefits in 2020, first half 2021 FCF of €417 million was around 25% stronger than in H1 2020.
• Portfolio simplification continues, with the divestment of six business lines and the completion of a bolt-on acquisition in Agro.
• Solvay ONE Planet extends the ‘better life’ pillar with the launch of Solvay ONE Dignity, which includes nine goals by 2025 to accelerate Diversity, Equity and Inclusion.