SOLVAY's First-quarter 2022 Results -Q1 Net Profit Was €369 Million
Leave a message
SOLVAY's first-quarter 2022 results -Q1 net profit was €369 million
Price increases drove a 26% increase in sales and a record EBITDA
Results window
Net sales in the first quarter of 2010 exceeded eur 3 billion, a new quarterly record and an organic increase of 26.1% compared to q1 2021. The entire business achieved double-digit sales growth in all regions through the successful implementation of price increases (+20%, eur 475 million) and volume growth (+6%, EUR 157 million).
The company achieved structural cost savings of €22 million in the first quarter of 2022 and a total cost reduction of €410 million since 2020. The company expects to achieve its medium-term cost savings of €500 million ahead of schedule.
Underlying EARNINGS before interest, tax, depreciation and amortization (EBITDA) grew organically by 20% to 712 million euros in the first quarter of 2022. The company's three business segments all achieved double-digit EBITDA growth on the back of rising pricing and volume. The price increases offset more than €369m of inflation-related cost increases in the quarter. EBITDA rose 35 per cent in the solutions segment, with consumer and industrial chemicals particularly strong. At the same time, EBITDA was up 21% in materials and 15% in chemicals.
The company's underlying eBITDA margin was 23.3% in the first quarter of 2022, consistent with full-year 2021, as price increases offset the negative impact of inflation.
Underlying net profit for the first quarter of 2022 was €369 million, up 54% compared to the same period last year
Despite stronger sales growth resulting in higher working capital, the company achieved eur216 million of free cash flow in the first quarter of 2022, a conversion rate of 32.9%. Working capital management is still implemented in the current quarter.
Return on capital employed hit a new record of 12.3 per cent, 477 basis points higher than last year's level.
Solvay has launched the company's fourth growth platform, which focuses on developing innovative solutions with sustainable ingredients and biotechnology and contributes to our sustainability goals by creating more recycling solutions.
