Syensqo, which recently completed separation from Solvay to create a new independently listed specialty chemical leader focused on innovation and growth, has posted net sales of €6.8 billion, decreased by 10% organically versus a record full year 2022, driven by 11% lower volumes and 1% increase in prices.

Volumes were impacted by the more challenging macroeconomic environment and customer destocking, partially offset by strong growth in Composite Materials

The company also posted underlying EBITDA of €1.6 billion in-line with full year 2023 outlook; EBITDA margin of 23.7% increased by 10 basis points year-on-year, supported by strong net pricing. Underlying net profit stood at €752 million.

The company has strong operating cash flow of €1.3 billion allowing for an acceleration in growth investments to extend leadership position and drive long term profitable growth. Free cash flow to shareholders of €448 million.

Ilham Kadri, CEO, Syensqo, said: “2023 was a historic year for Syensqo and I am proud of our achievements. We successfully completed our separation, listed on Euronext Brussels and Paris in December, while meeting our full year EBITDA target, and further strengthening our balance sheet. This was all achieved in the context of a volatile macroeconomic and business environment. We also used our strong cash generation to accelerate the pace of our capital investments in key strategic technologies and platforms, aligned with our mid-term targets.

“Over the last two years, we have significantly outperformed our markets and peer group. While we currently expect a muted recovery in demand in many of our markets during 2024, I have never been more confident in the long-term drivers of our business and our teams’ ability to innovate and win new customers to unlock shareholder value.”

2024 Outlook

For 2024, we expect the overall demand dynamics across our major end markets to reflect the trends we saw towards the end of 2023, with flattish overall volumes. In addition, the end of customer destocking in a number of our end markets has started to prompt a more stable demand outlook since the start of the year. More specifically, and based on our year-to-date performance, we expect our Q1 2024 underlying EBITDA to increase by approximately 20% versus the level achieved in Q4 2023.

Full-year underlying EBITDA is currently estimated to be in the range of €1.4 billion and €1.55 billion. The lower end of range is aligned with current market dynamics and the annualised EBITDA performance we expect to achieve in Q1 2024. The higher end of the range assumes a modest year-on-year volume recovery, predominantly in the second half of the year, subject to the overall macroeconomic and demand environments.

Capital expenditures are expected to be in the range of €600-€650 million as we prioritise our investments based on the outlook for 2024 and take into account the acceleration of overall spend in 2023. Free Cash Flow is estimated to be in the range of €400 million and €500 million, excluding the previously announced c.$180million PFAS payment to the New Jersey Department of Environmental Protection, which is expected to be made during Q2 2024.

Aligned with the mid-term financial targets provided at our recent Capital Markets Day, the Syensqo team is focused on accelerating value creation by delivering superior revenue growth, margin expansion and increasing returns.