Solvay's 2024 Results Highlight Strong Financial Resilience

Solvay Reports Strong 2024 Financial Results

Solid EBITDA and free cash flow supported by cost savings acceleration

Brussels, March 6, 2025, 7.00am CET

Solvay, a leader in essential chemicals, has demonstrated resilience and effective strategic execution in a challenging market environment throughout 2024. The company continues to focus on its goal of sustainable growth and innovation. Despite facing difficulties leading to a slight decline in pricing, Solvay reported a modest increase in underlying net sales in the fourth quarter of 2024.

2024 Financial Highlights

In the fourth quarter of 2024, Solvay achieved underlying net sales of €1,134 million, representing a 0.5% organic growth compared to the same quarter in 2023. This growth is attributed to positive volume increases in segments like Bicarbonate and Peroxides, underscoring the company's strong product demand.

For the full year, the company reported total underlying net sales of €4,686 million. Although this figure reflects a 4.0% organic decline year-over-year, it is important to note that growth was driven by increased volumes for the fourth consecutive quarter. Nonetheless, the market experienced pressure from lower pricing.

EBITDA Performance

Solvay's underlying EBITDA for Q4 2024 was €256 million, which signifies a 2.0% organic growth compared to the previous year. The underlying EBITDA margin stood at an impressive 22.6%. For the full year, the underlying EBITDA reached €1,052 million, albeit an 8.2% decline organically, which highlights the effects of pricing pressures countered somewhat by positive volume growth and effective cost savings.

Cost Savings Initiatives

The company's structural cost savings initiatives yielded remarkable results, achieving €110 million in 2024, surpassing the initial target of €80 million. This success is primarily due to the acceleration of savings programs in manufacturing and corporate functions.

Profit and Cash Flow Insights

In terms of profitability, Solvay reported an underlying net profit from continuing operations of €445 million in 2024, down from €588 million in 2023. This reflection of profit underscores the company’s commitment to shareholder value, despite the challenging market dynamics.

Free cash flow amounted to €361 million, bolstered by strong EBITDA performance and disciplined management of working capital. The company also plans for capital expenditures (Capex) to accelerate in Q4 2024, ultimately reaching €355 million for the full year.

Shareholder Returns

Looking forward, Solvay proposed a gross dividend of €2.43 per share, pending shareholder approval at the scheduled Ordinary General Meeting. The robust dividend reflects the company's ongoing commitment to providing value to its shareholders.

Outlook for 2025

As Solvay looks ahead to 2025, the macroeconomic and geopolitical landscape indicates that significant recovery in volume may not occur, particularly in the first half of the year. Nevertheless, the company anticipates that underlying EBITDA will fall between €1.0 billion and €1.1 billion, with free cash flow estimates hovering around €300 million. Additionally, the management is focused on achieving cost savings of €200 million by year-end to help mitigate pressures stemming from inflation and operational costs.

Long-term Financial Targets

Solvay remains committed to its long-term growth strategy, confirming its targets for underlying EBITDA increase and maintaining a robust margin. Looking towards 2028, Solvay aims to sustain top-quartile financial performance, signifying a focus on generating reliable cash flow and excellent returns. This commitment includes investing in essential capex and delivering stable dividends to uphold shareholder confidence.

Commitment to Sustainability

In 2024, Solvay launched its "For Generations" sustainability roadmap, setting ambitious goals that align with the company's strategic direction. The roadmap emphasizes two main pillars: environmental progress and societal betterment. Solvay's initiatives underscore their longstanding mission to create a sustainable impact while addressing essential global challenges.

With a robust workforce and a legacy dating back to 1863, Solvay is well-positioned to lead in innovation and sustainability, driving progress across its diverse operations and stakeholders.

Frequently Asked Questions

What were Solvay's net sales for 2024?

Solvay reported underlying net sales of €4,686 million for the full year 2024.

How did Solvay's EBITDA perform in Q4 2024?

In Q4 2024, Solvay's underlying EBITDA was €256 million, marking a 2.0% organic increase year-over-year.

What are the expected dividends for shareholders in 2025?

Solvay proposes a gross dividend of €2.43 per share, subject to approval at the next General Meeting.

What are Solvay's projections for 2025 EBITDA?

The company expects its underlying EBITDA for 2025 to be between €1.0 billion and €1.1 billion.

What sustainability initiatives has Solvay launched recently?

Solvay launched its "For Generations" roadmap, aimed at driving environmental and social progress through its operations.

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