By: ICN Bureau
Last updated : February 23, 2022 3:00 pm
Solvay’s robust performance was due to strong volumes and pricing actions
Solvay has posted net sales for the full year 2021 at €10.1 billion, up 17% organically over 2020, with 12% of the growth driven by volumes and 5% driven by pricing.
More than half of the full year impact from price initiatives were realized in Q4. Full year net sales were up +4.4% organically compared to 2019, reflecting continued momentum in key markets including auto and electronics. In the fourth quarter, net sales increased +22.4% versus 2020 and +17.1% versus 2019. The acceleration of price increases largely offset a €465 million impact from variable cost inflation, a release issued by Solvay said.
Structural cost savings for the full year 2021 amounted to €213 million, bringing total structural savings since 2019 to €390 million, or 80% of its targeted €500 million (annual run-rate) by the end of 2024.
Underlying EBITDA increased +27% versus full year 2020, setting a new record at €2,356 million. EBITDA was up +8% versus 2019, despite the slower recovery in the civil aero market, demonstrating good operating leverage. Underlying EBITDA margin rose to 23.3%, 160 basis points higher than 2020 despite the high inflationary environment. EBITDA in the fourth quarter grew +24% organically, or +19% excluding net €27 million of one-time gains.
“2021 marks another great year of progress in our transformation journey. We emerged stronger on all fronts, from pricing power to profitability, from cash generation to returns. This year we faced new challenges and we overcame rising raw material and energy costs and supply chain disruptions. We continue to build on our strong foundations and I am confident in our ability to deliver. The dedication of our people, the progress we are making in serving our customers, and the new investments we’re making position us for superior growth in the years ahead,” Ilham Kadri, CEO, Solvay, said.
On the 2022 outlook, the release said: “Against an unprecedented inflationary cost environment, pricing actions in 2022 are expected to accelerate, and full year EBITDA is estimated to grow organically by mid-single digits. With the current cycle of growth investments underway, Free Cash Flow is estimated to exceed €650 million.”