Solvay SA (SLVYY), a Belgian chemicals company, reported that its fourth quarter profit attributable to its share dropped to 30 million euros or 0.28 euros per share from last year's 1.429 billion euros or 13.58 euros per share. Profit from continuing operations was 33 million euros compared to a loss of 258 million euros in the prior year.
In December 2023, Solvay SA/NV (EssentialCo) completed a partial demerger, leading to the separation of its Specialty Businesses. These Specialty Businesses, now named Syensqo SA/NV, became a standalone public company, independent from Solvay. As a result, Solvay's performance measures were adjusted to reflect this separation, and the Specialty Businesses were classified as discontinued operations.
Solvay's fourth quarter underlying earnings per share were 0.96 euros compared to 1.81 euros in the previous year.
Sales for the fourth quarter were 1.254 billion euros down from 1.341 billion euros in the prior year. Underlying net sales in the fourth quarter 2024 were slightly up (+0.5% organically) compared to the prior year despite lower pricing, with continued year-on-year growth in volumes for certain businesses such as Bicarbonate and Peroxides.
The Board of Directors has decided to propose a total gross dividend of 2.43 euros per share, subject to Shareholders' approval during the Ordinary General Meeting scheduled for May 13, 2025. If approved and taking into account the interim gross dividend of 0.97 euros per share paid on January 22, 2025, a final gross dividend of 1.46 euros per share will be paid on May 21, 2025.
Solvay announced the launch of a new share buy-back program for the purpose of meeting any delivery obligations of Solvay shares arising from grants of its 2025 long-term incentive plans. Under this new program, Solvay may acquire up to 215,000 Solvay shares.
Solvay expects its full year 2025 underlying EBITDA to be between 1.0 billion euros and 1.1 billion euros, representing an organic growth of -5 to +5% using EUR/USD rate of 1.05. Free cash flow to Solvay shareholders from continuing operations is expected to be around 300 million euros.
Solvay confirmed its 2028 underlying EBITDA growth, underlying EBITDA margin and ROCE targets, increases its gross savings annual run-rate target from 300 million euros to 350 million euros, and replaces its free cash flow conversion ratio target by the existing Capital Allocation policy, which confirms the company's commitment towards free cash flow generation.
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