Solvay posted a net profit of EUR 77 million in Q4 2020 compared to a net profit of EUR9 million during the corresponding period a year earlier.

Earnings before interest, taxes, depreciation and amortization were EUR416 million, down from EUR516 million a year earlier. Net sales for the fourth quarter fell to EUR2.21 billion from EUR2.44 billion, bringing annual sales to EUR8.97 billion.

The company said that its net sales for the full year 2020 were down 10% organically, due to the impact from Covid on civil aero and oil & gas volumes, which were moderated by resilient demand in healthcare, consumer goods, personal care, and electronics.

 It announced that the cost savings of €332 million were delivered in 2020, of which €175 million were structural savings.  This result reflects the decisive nature of the Group’s response as it also accelerated and deepened the delivery of its strategic cost reduction programs.

“I’m proud of the significant progress we made in 2020. We launched our Group’s Purpose and progressed on our ambitious ONE Planet roadmap as we deliver our G.R.O.W. strategy.  As the crisis unfolded, we quickly adapted priorities to accelerate our cost and cash delivery, demonstrated the resilience of our business, while supporting our people through the launch of a Solidarity fund. I want to thank our employees for their perseverance, our customers for their valued partnerships, and our investors for their continued support.  Building on the Q4 momentum and the strategic foundation now in place, we will emerge leaner and stronger, with innovation fueling our return to top-line growth, Ilham Kadri, CEO, Solvay, said.

Outlook

First quarter 2021 EBITDA is estimated to be between €520 million and €550 million, and Free Cash Flow is expected to be between €600 and €650 million for full year 2021. Free cash flow indications reflect the benefits of reduced pension and financial charges, higher restructuring costs, reinvestment in working capital and capex to support innovation and growth.