SYENSQO FIRST QUARTER 2024 RESULTS
Brussels, May 16, 2024, 6:45 a.m. CEST
IMPROVED YEAR-ON-YEAR VOLUME MOMENTUM IN Q1 2024
UNDERLYING EBITDA OF EUR363 MILLION WITH STRONG SEQUENTIAL MARGIN IMPROVEMENT TO
22.3%
FULL YEAR 2024 OUTLOOK REITERATED
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Underlying (EUR
million) Q1 2024 Q1 2023 YoY reported YoY organic Q4 2023 QoQ reported
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Net sales 1,624 1,813 -10.4% -8.3% 1,577 3.0%
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EBITDA 363 473 -23.4% -20.4% 294 23.3%
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EBITDA margin 22.3% 26.1% -380 bps - 18.7% 370 bps
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Operating cash
flow 244 412 -40.9% - n.a. -
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Cash conversion
(LTM) (1) 88.7% n.a. - - n.a. -
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Free cash flow
(2) 157 255 -38.1% - n.a. -
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ROCE (LTM) 9.6% n.a. - - n.a. -
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Q1 2024 Highlights
* Net sales of EUR1.6 billion increased by 3% sequentially with improved volume
momentum, most notably in Novecare and Specialty Polymers. On a year-on year
basis, net sales decreased by 8% organically versus a record Q1 2023, driven
by lower volumes (2%) and decrease in prices (6%), most notably in the
Consumer & Resources segment and Specialty Polymers.
* Underlying EBITDA of EUR363 million increased by 23% sequentially, in-line
with prior outlook
* EBITDA margin of 22.3% increased by approximately 370 basis points
sequentially, driven by gross margin improvements in all businesses, most
notably in Composite Materials, Specialty Polymers and Novecare, reflecting
the quality of our offering and strong control of operations and pricing
* Underlying net profit of EUR156 million
* Operating cash flow of EUR244 million, resulting in cash conversion of 89%;
Free cash flow of EUR157 million
* Balance sheet: net debt reduced to EUR1.5 billion (versus EUR1.6 billion at the
end of 2023) and leverage ratio of 1.0x
Dr. Ilham Kadri, CEO
"In addition to meeting our outlook for the first quarter, I am encouraged by
the improved momentum we have seen since the start of the year. We saw strong
margin expansion, with sequential improvements in volumes and net sales in both
Materials and Consumer & Resources.. However, it is still too early to call it a
trend, and we therefore reiterate our full year outlook.
"Our first five months as Syensqo have seen us ensure a smooth transition for
our customers, while further sharpening our innovation and commercial
priorities, fully aligned with their needs and the unique value we offer. In
addition we announced new and ambitious partnerships, launched new disruptive
technologies to advance our leadership positions in aerospace, electric vehicles
and specialty coatings, as well as making a bolt-on investment in high value
dermocosmetics to enhance our portfolio in the consumer market".
2024 Outlook
While our first quarter 2024 results benefited from improved volume momentum,
supporting the strong sequential increase in underlying EBITDA, the pace of a
broader macroeconomic recovery remains unclear. As a result, we reiterate our
previous full year 2024 outlook ranges as follows:
* Underlying EBITDA to be in the range of EUR1.4 billion and EUR1.55 billion;
* Capital expenditures to be in the range of EUR600-EUR650 million;
* Underlying Free Cash Flow in the range of EUR400 million and EUR500 million,
excluding the previously announced $180 million PFAS payment to the New
Jersey Department of Environmental Protection, which was made in April 2024
As demonstrated by our performance in the first quarter of 2024, we confirm that
we saw the inflection in our quarterly underlying EBITDA performance in the
fourth quarter of 2023. We expect this positive momentum in underlying EBITDA to
continue in the second quarter of 2024, aligned with current consensus
expectations.
As previously indicated, second quarter net debt will include cash outflows
related to the PFAS settlement as well as EUR172 million related to the dividend
payment on May 31, 2024, subject to shareholder approval at the Annual General
Meeting on May 23, 2024.
Safe harbor
This press release may contain forward-looking information. Forward-looking
statements describe expectations, plans, strategies, goals, future events or
intentions. The achievement of forward-looking statements contained in this
press release is subject to risks and uncertainties relating to a number of
factors, including general economic factors, interest rate and foreign currency
exchange rate fluctuations, changing market conditions, product competition, the
nature of product development, impact of acquisitions and divestitures,
restructurings, products withdrawals, regulatory approval processes, all-in
scenario of R&I projects and other unusual items. Consequently, actual results
or future events may differ materially from those expressed or implied by such
forward-looking statements. Should known or unknown risks or uncertainties
materialize, or should our assumptions prove inaccurate, actual results could
vary materially from those anticipated. The Company undertakes no obligation to
publicly update or revise any forward-looking statements.
About Syensqo
Syensqo is a science company developing groundbreaking solutions that enhance
the way we live, work, travel and play. Inspired by the scientific councils
which Ernest Solvay initiated in 1911, we bring great minds together to push the
limits of science and innovation for the benefit of our customers, with a
diverse, global team of more than 13,000 associates.
Our solutions contribute to safer, cleaner, and more sustainable products found
in homes, food and consumer goods, planes, cars, batteries, smart devices and
health care applications. Our innovation power enables us to deliver on the
ambition of a circular economy and explore breakthrough technologies that
advance humanity.
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Nathalie van Ypersele
+32 478 20 10 62 Sherief Bakr
+44 7920 575 989
Perrine Marchal
+32 478 32 62 72 Bisser Alexandrov
+33 6 07 63 52 80
Laetitia Schreiber
+32 487 74 38 07 Imtiyaz Lokhandwala
+1 609 860 3959
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