Solvay Raises 2023 Ebitda, Cash-Flow Guidance After 1Q Earnings, Sales Rose

By Cecilia Butini

Solvay on Thursday posted higher earnings and sales for the first quarter and raised its full-year guidance on Ebitda and free cash flow despite lower volumes.

The Belgian chemicals company said net profit rose to 460 million euros ($509 million) in the quarter from EUR369 million the year prior, while earnings before interest, taxes depreciation and amortization rose to EUR839 million from EUR712 million in the same quarter of 2022. Both figures beat analysts' expectations that saw them at EUR338 million and EUR730 million, respectively.

Sales rose to EUR3.17 billion from EUR3.06 billion the year prior, overcoming lower volumes that stemmed from softer demand across end markets, Solvay said.

Return on capital employed also rose on-year, reaching 16.7% from 12.3% the previous year, the company said.

Solvay raised its yearly guidance on Ebitda and free cash flow, saying that it expects underlying Ebitda to grow in a range between negative 5% and 2%, up from a previous range of negative 9% to negative 3%. Free cash flow is expected at around EUR900 million, from a previous expectation of about EUR750 million, the company said.

Write to Cecilia Butini at [e-mail]

(END) Dow Jones Newswires

May 04, 2023 01:50 ET (05:50 GMT)

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