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July 29, 2021 at 7 a.m. CEST

Solvay 2021 first half results

Solvay raises full year guidance following double-digit sales and EBITDA growth in Q2 2021


  • Net sales in the second quarter of 2021 were up +20% organically versus Q2 2020 and back to 2019 levels in most markets with particularly strong demand in automotive, electronics and building industries. Excluding composites and oil & gas, sales were up +22% versus Q2 2020 and up +6% versus Q2 2019.
  • Structural cost savings of €51 million were delivered in Q2, totaling €131 million in the first half 2021, on track to meet the projected annual savings of €200 million.
  • Underlying EBITDA of €602 million in Q2 2021 was up +47% year on year on a comparable scope and foreign exchange basis, reflecting strong demand and continued cost reductions. First half 2021 EBITDA is 5% higher than first half 2019.
  • EBITDA margin of 24.5% is 4.3 percentage points higher than Q2 2020 as a result of the higher volumes and structural cost measures, though rising raw material, energy and logistics costs impacted Q2 by approximately €50 million.
  • Underlying Net Profit was €276 million in Q2 2021, more than double the delivery in Q2 2020.
  • Free Cash Flow was €135 million in Q2 2021 reflecting the expected seasonal payments of employee bonuses and higher financial charges. Excluding scope and one-time benefits in 2020, first half 2021 FCF of €417 million was around 25% stronger than in H1 2020.
  • Portfolio simplification continues, with the divestment of six business lines and the completion of a bolt-on acquisition in Agro.
  • Solvay ONE Planet extends the ‘better life’ pillar with the launch of Solvay ONE Dignity, which includes nine goals by 2025 to accelerate Diversity, Equity and Inclusion.
  Second quarter  First half
Underlying (in € million)  202120202019% org 21/20% org
 202120202019% org
% org
Net sales 2,4562,1752,654+20.4%-1.4% 4,8294,6495,225+10.5%-2.3%
EBITDA 602439624+47.4%+3.3% 1,1851,0081,195+26.5%+5.0%
EBITDA margin 24.5%20.2%23.5%-- 24.5%21.7%22.9%--
FCF 135233123-- 41743533--
FCF conversion ratio (LTM) 46.1%49.0%28.2%-- 46.1%49.0%28.2%--

CEO Quote
“I’m proud of our team’s determination to take full advantage of the robust demand environment as we drive strong top line growth, with June volumes surpassing 2019 levels. Our structural cost actions and pricing initiatives sustained our leading margins in the quarter. Further, our disciplined approach to cash management is contributing to continued deleveraging. As we look ahead, we remain focused on mitigating the inflationary environment, and on reinvesting in our key growth areas including batteries and electronics, which will drive superior growth across the mid-term.”

20211 Outlook
Full year underlying EBITDA estimate is increased from €2.0 to €2.2 billion previously to €2.2 to €2.3 billion. Free Cash Flow estimate is increased from €650 million previously to around €750 million.

1 Barring additional deterioration related to another wave of Covid-19 in the second half.