Solvay's net sales in the third quarter of 2021 were up +25% organically versus Q3 2020 and up by +6% organically compared to Q3 2019 (+12% excluding Composites), reflecting continued strong demand in most of our markets including record sales in Specialty Polymers. Nine months 2021 sales were 15% organically above 9M 2020, and up +0.5% (+6% excluding Composites) compared to 2019.

 

Underlying EBITDA at €599 million in Q3 2021 was up +31% year on year on a comparable scope and foreign exchange basis, reflecting demand recovery, mitigating actions in the face of sharp increases in energy prices, raw materials and logistics, and structural cost savings of €41 million. Nine months 2021 EBITDA is 28% higher than in 2020 and is 6% higher compared to 2019 (at constant scope and currency).

 

EBITDA margin at 23.3% is 0.8 percentage points higher than Q3 2020 thanks to higher volumes, pricing, and structural cost measures which partially offset the €145 million impact from rising raw materials, energy and logistics costs.

 

Underlying Net Profit at €273 million in Q3 2021, 55% higher than versus Q3 2020.

 

Free Cash Flow1 amounted to €276 million in Q3 2021, marking the 10th consecutive quarter of positive free cash flow and bringing the nine months 2021 total to €692 million.

 

Company has declared Interim dividend of €1.50 gross per share to be paid on January 17, 2022.

 

Commenting on the results, Ilham Kadri, Solvay CEO said, "We saw continued demand recovery in most of our businesses and achieved record sales in Specialty Polymers. Indeed, our Q3 sales performance represents high single-digit growth versus 2019 despite slower dynamics in civil aerospace. Our relentless focus on cost and price actions allowed margins to remain stable comparatively to their pre-covid19 level. Looking forward, further actions are being implemented to account for the rising raw materials, energy and logistics costs. Despite these macro headwinds, we maintain our EBITDA guidance and upgrade our Free Cash Flow estimate by €50 million. As we execute on our GROW strategy, we continue to disproportionately allocate resources to our growth businesses and platforms in order to further enhance our capacity to generate superior and sustainable growth for the future.

 

I am also proud to announce today that Solvay has targeted carbon neutrality before 2050. We remain focused on delivering on our Solvay One Planet priorities and we will raise the bar in response to climate change. Today’s announcement represents a key step forward in our journey toward net-zero emissions."