<< Mitteilung

2019-07-31 07:00

Solvay Group 2019 second quarter and first half results

The full financial report can be found on: https://www.solvay.com/en/investors/financial-reporting#Solvay-Earnings
An analyst webcast will be held at 13:30, please see https://www.solvay.com/en/event/solvay-first-half-year-2019-earnings

 

PROFIT

  • Net sales were up +2.6% in H1, and underlying EBITDA was -0.5% as forex conversion effects compensated for an organic [1] decrease of -3.1%. In Q2 Underlying EBITDA was down -5.2% organically [1]. The organic decrease includes the net year-on-year effect of one-time events of -1% and -2% for H1 and Q2 respectively.
  • Positive net pricing partly offset lower volumes and higher fixed costs resulting from the challenging macroeconomic environment.
  • Underlying EBITDA margin in H1 remained solid at 23%.
  • Advanced Materials 
    • Underlying EBITDA in Q2 decreased -17% organically [1], leading to an H1 performance of -12% organically [1]
    • Double-digit volume growth in composites to aerospace partly offset declines in automotive and electronics markets
  • Advanced Formulations 
    • Underlying EBITDA in Q2 was down -9.2% organically [1], bringing H1 EBITDA to -5.8% organically [1]
    • Lower volumes in oil & gas market, which remains challenged, while other markets, including mining, agro and aroma performance, were more supportive.
  • Performance Chemicals 
    • Underlying EBITDA in Q2 grew +12% organically [1], contributing to H1 organic [1] growth of +11%
    • Higher prices and operational excellence supported growth, while demand remained solid.
  • Underlying EPS [2] from continuing operations
    • Q2: €2.30 (-13%) ; H1: €4.30 (-6.7%)
  • Total underlying EPS [2] in H1 was €5.89, up +4.4%, including a strong contribution from discontinued polyamide activities.
  • Underlying EPS [2] from continuing operations was down -6.7% in H1 on lower EBITDA and a higher tax rate.

 

CASH

  • Free cash flow to Solvay shareholders turned positive to €33 million in H1, resulting from significantly stronger cash generation in the second quarter of €123 million, due to strong inventory management.
  • Total Free cash flow to Solvay shareholders was €191 million in H1, exceeding free cash flow in H1 2018 by more than €100 million, thanks to a strong contribution from the discontinued Polyamide activities.


OUTLOOK

2019 full year outlook confirmed

Despite continuing headwinds in certain end-markets, Solvay confirms its full year outlook:

  • Underlying EBITDA to be flat to modestly down organically [3];
  • Free cash flow to shareholders from continuing operations to be around €490 million [4].

 

CEO Ilham Kadri commented:

Solvay’s results in the second quarter met our expectations. Growth in aerospace, mining, agro and Aroma Performance was offset by the headwinds in automotive, electronics and oil & gas. Against this backdrop, we focused on actions within our control — cash, costs and pricing. We are progressing on our comprehensive strategy review, with a clear objective of unleashing and accelerating value creation. We look forward to sharing our strategy roadmap when we report our third quarter results in November.”

 

All comparisons are made year on year with 2018 pro forma figures, as if IFRS 16 had already been implemented in 2018, unless stated otherwise.

[1] Organic growth excludes forex conversion and scope effects, as well as the effect from the implementation of IFRS 16.

[2] Underlying earnings per share, basic calculation.

[3] Organic growth excludes forex conversion and scope effects, and compares to €2,330 pro forma in 2018, which already includes the €100 million IFRS 16 effect.

[4] Free cash flow to Solvay shareholders is free cash flow post financing payments and dividends to non-controlling interests, and compares to €566 million in 2018. Free cash flow from continuing operations (before financing) is expected at around €770 million in 2019, compared to €846 million pro forma in 2018.

Attachments

Indizes

LU0916829079 610.999 (-2.61%)

Aktien und Anleihen

Aktie Kurs Letz. +/-
Aperam (EUR) 23.47 24.08 -2.53%
ArcelorMittal (EUR) 13.084 13.84 -5.46%
BlueMarHoldings (EUR) 4.76 4.76 +0.00%
Brederode (EUR) 70.6 71.2 -0.84%
EDIFY act. ord. (EUR) 49.8 49.8 +0.00%
HellaGmbHKGaa (EUR) 43.52 43.92 -0.91%
ImmoLux-Airport (EUR) 100.0 270.0 -62.96%
Luxempart (EUR) 52.5 52.0 +0.96%
RTLGroup (EUR) 44.72 45.82 -2.40%
ReinetInvest (EUR) 15.2 16.0 -5.00%
SEO .prvB (EUR) 260.0 236.0 +10.17%
SEO 1/5prvB (EUR) 54.0 57.0 -5.26%
SES FDR (EUR) 15.115 15.125 -0.07%
SocFinCaoutchcs (EUR) 26.6 26.6 +0.00%
Socfinaf (EUR) 10.4 10.2 +1.96%
Socfinasia (EUR) 12.9 12.9 +0.00%
Vonovia (EUR) 44.15 44.1 +0.11%
Anleihe Kurs Letz. +/-
AXA 5,25% 16/04/2040 (EUR) 102.896 102.905 -0.01%
AirbusFinan 2,375% 02/04/2024 (EUR) 110.443 110.468 -0.02%
AlticeLux 7,25% 15/05/2022 (EUR) 102.39 102.281 +0.11%
Astaldi 7,125% 01/12/2020 (EUR) 21.5 23.5 -8.51%
BASF 2,5% 22/01/2024 (EUR) 110.596 110.607 -0.01%
BNGBank 4,375% 16/02/2021 (USD) 103.315 103.355 -0.04%
BNPParibas 4,875% pp (EUR) 100.45 100.345 +0.10%
BarclaysBank 4,75% pp (EUR) 97.282 97.283 -0.00%
Bayer 1,875% 25/01/2021 (EUR) 102.235 102.235 +0.00%
Bayer 2,375% 02/04/2075 (EUR) 101.03 100.968 +0.06%
Bekaert 5% 06/12/2019 (EUR) 100.952 100.965 -0.01%
BenOldmanESB 10% 23/10/2021 (EUR) 102.0 102.0 +0.00%
Bombardier 6,125% 15/05/2021 (EUR) 106.285 106.438 -0.14%
Bouygues 3,625% 16/01/2023 (EUR) 112.83 112.831 -0.00%
CasinoGuichardP FRN pp (EUR) 43.007 43.002 +0.01%
CmaCgm 7,75% 15/01/2021 Reg S (EUR) 93.072 92.851 +0.24%
Colombia 8,375% 15/02/2027 (USD) 124.0 121.25 +2.27%
CreditAgricole 7,875% pp (EUR) 100.822 100.808 +0.01%
Daimler 2% 25/06/2021 (EUR) 103.675 103.67 +0.00%
DeutscheBank 2% 02/12/2019 (USD) 96.78 96.75 +0.03%
DeutscheBank 2,2% 17/11/2020 (USD) 98.33 98.26 +0.07%
DtscheLufthansa 5,125% 12/08/2075 (EUR) 106.38 107.18 -0.75%
EFSF 1,875% 23/05/2023 (EUR) 108.93 108.965 -0.03%
EFSF 2,25% 05/09/2022 (EUR) 108.44 108.459 -0.02%
ENI 1,75% 18/01/2024 (EUR) 107.59 107.619 -0.03%
GazCapital 8,625% 28/04/2034 (USD) 141.557 141.567 -0.01%
GiePsaTresor 6% 19/09/2033 (EUR) 147.6 147.013 +0.40%
HeidelbergFinLu 7,5% 03/04/2020 (EUR) 104.0 104.01 -0.01%
HornbachBau 3,875% 15/02/2020 (EUR) 101.495 101.498 -0.00%
KfWA 2% 02/05/2025 (USD) 101.33 101.467 -0.14%
Lafarge 4,75% 23/03/2020 (EUR) 102.43 102.44 -0.01%
Luxembourg 2,125% 10/07/2023 (EUR) 110.572 110.585 -0.01%
Luxembourg 2,25% 19/03/2028 (EUR) 122.806 122.774 +0.03%
Luxembourg 2,25% 21/03/2022 (EUR) 107.495 107.567 -0.07%
Luxembourg 2,75% 20/08/2043 (EUR) 143.669 141.305 +1.67%
Luxembourg 3,375% 18/05/2020 (EUR) 102.565 103.059 -0.48%
MOBY 7,75% 15/02/2023 Reg S (EUR) 30.64 30.694 -0.18%
McDonalds 2% 01/06/2023 (EUR) 107.635 107.646 -0.01%
MüchenerRückGes 6% 26/05/2041 (EUR) 110.057 110.055 +0.00%
NBFinanceLtd FRN 07/02/2035 (EUR) 92.785 92.751 +0.04%
NordRheinWFalen 2,375% 16/09/2021 (USD) 100.917 100.973 -0.06%
NovoBanco 100 09/04/2052 (EUR) 22.372 22.328 +0.20%
NovoBanco 3,5% 02/01/2043 (EUR) 100.329 100.214 +0.11%
OMV 6,25% pp (EUR) 127.095 127.83 -0.57%
Pemex 6,5% 02/06/2041 (USD) 95.471 94.843 +0.66%
PetroVenezuela 12,75% 17/02/2022 (USD) 28.7 27.0 +6.30%
PetroVenezuela 5,375% 12/04/2027 (USD) 13.933 13.933 +0.00%
PetroVenezuela 5,5% 12/04/2037 (USD) 13.93 13.93 +0.00%
Philippines 4,2% 21/01/2024 (USD) 108.399 108.353 +0.04%
Portugal 5,125% 15/10/2024 (USD) 113.415 113.602 -0.16%
RWE 3,5% 21/04/2075 (EUR) 109.095 109.039 +0.05%
RWE 6,625% 30/07/2075 (USD) 111.915 111.978 -0.06%
RaiffeisenBkInt 6% 16/10/2023 (EUR) 120.609 120.558 +0.04%
RussianFed 7,5% 31/03/2030 (USD) 120.594 120.558 +0.03%
SNCFMobilites 4,875% 12/06/2023 (EUR) 120.073 120.083 -0.01%
Sanofi 1,75% 10/09/2026 (EUR) 110.632 110.616 +0.01%
StadaArzneimitt 1,75% 08/04/2022 (EUR) 102.314 102.359 -0.04%
SüdzuckIntlFin FRN pp (EUR) 74.406 74.5 -0.13%
TelecomItaliaCa 7,2% 18/07/2036 (USD) 114.837 114.466 +0.32%
TelecomItaliaFi 7,75% 24/01/2033 (EUR) 150.178 150.355 -0.12%
Thyssenkrupp 2,5% 25/02/2025 (EUR) 104.59 104.605 -0.01%
Turkey 7,375% 05/02/2025 (USD) 105.448 105.027 +0.40%
VWIntlFin 4,625% pp (EUR) 110.78 110.614 +0.15%
VWIntlFin 5,125% pp (EUR) 112.665 113.08 -0.37%
Venezuela 11,75% 21/10/2026 (USD) 17.457 19.685 -11.32%
VeoliaEnvironn 6,125% 25/11/2033 (EUR) 174.498 174.295 +0.12%
YPF 8,5% 28/07/2025 Reg S (USD) 80.002 79.669 +0.42%
ØRSTED A/S 6,25% 26/06/3013 (EUR) 120.215 119.7 +0.43%