Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SOLVAY SA. We currently have 7 research reports from 1 professional analysts.
|23Nov16 07:00||GNW||PARTICIPATION NOTIFICATION BY BLACKROCK, INC|
|08Nov16 06:01||GNW||SOLVAY GROUP HIGHLIGHTS 3RD QUARTER AND 1ST 9 MONTHS 2016|
|02Nov16 06:30||GNW||Solvay starts production of highly dispersible silica for energy saving tires in South Korea|
|29Sep16 06:00||GNW||Solvay accelerates drive for sustainable and long-term value creation with new mid-term objectives|
|20Sep16 06:30||GNW||Solvay expands composite materials capabilities in Germany for new advanced aircraft programs|
|06Sep16 06:30||GNW||Solvay starts up a new hydrogen peroxide plant in China as demand in high-quality applications rises|
Frequency of research reports
Research reports on
Underlying figures look good – at first sight
08 Nov 16
Q3 sales rose +8% to €2,921m and the gross profit margin improved from 26.9% to 29.7%, based on IFRS. EBIT rocketed +67% to €360m and net profit attributable to shareholders ballooned by +71% to €176m. Conveying the better operating performance and higher D/A down the road, operating CF strongly increased by +31% to €522m. Investing CF swung from €-193m to €37m, clearly pushed by the divestment of Solvay’s stake in Inovyn, the European chlorovinyls joint venture held with Ineos, contributing €309m to CF. Financing CF dug deeper from €-130m to €-588m, burdened by higher repayments of borrowings (€-541m after €+20m). Management provided a more detailed FY guidance, now expecting®EBITDA to grow 7-8% (high single-digits; 2015 pro forma: €2,336m) and FCF is expected to exceed €700m (above €650m).
Stuck on its struck path
29 Jul 16
It looks to us that Solvay will follow its chosen path by focusing on a creative set of figures. Based on the previous year’s pro-forma figures, Q2 sales were down 6% to €2,946m, whereas gross profit margin strongly rose from 27.0% to 29.0%. Underlying EBITDA (no chance for adjustments) strongly grew by +35% to €453m and net income attributable to shareholders jumped +48% to €185m. Operating CF was burdened by higher NWC outflow and higher provisions coming in at €356m after €410m. Investing CF moved from €-267m to €-173m due to some lower capex and a swing from acquisitions to divestments of companies. Financing CF was hit by the swing from net gross debt issuance (€18m) to net gross debt repayments (€-321m) and additionally loaded by higher dividends. Management reaffirmed FY guidance, still expecting REBITDA to grow in high single-digits (2015 pro-forma: €2,336m). FCF is seen above €650m.
Babel in numbers
03 May 16
Solvay has created a set of figures, which might have been meant to generate transparency but the comparable figures are pro-forma figures as if Cytec had been acquired since 1 January 2015. Sales moved up +10% to €3,052m, despite a more than €430m (estimate) push from Cytec, as prices, adverse FX developments and some divestments offset Cytec’s sales. The gross profit margin slightly improved (26.0% after 25.7%) but net income attributable to shareholders was hit by significantly higher one-offs as well as interest expenses melting like ice in the sunshine (€15m after €140m). By contrast, operating CF swung from €-88m to €217m, driven by much higher D/A and a NWC outflow, which nearly halved (€-246m after €-502m). Investing CF came in at €-217m after €-526m, predominately helped by the lack of an income tax payment and some lower capex (below D/A). Financing CF swung from €521m to €-383m due to the swing from net cross debt repayments (€334m) to net gross debt issuance (€-137m) and some higher dividend payments. Management reaffirmed FY guidance, still expecting REBITDA to grow in high single-digits (2015 pro-forma: €2,336m). FCF is seen above €650m.
Where has all the performance gone?
25 Feb 16
Thanks to FX tailwinds (6%), Solvay reported +4% higher sales at €10,578m in 2015, but the gross profit margin improved 1.0bp to 26.1%. REBITDA went up +10% to €1,955m and net profit attributable to shareholders came in at €406m after €80m. Operating CF declined 14% to €1,388m, facing a swing in NWC from €236m inflow to €-99m outflow. Severely hit by the purchase price for the Cytec acquisition, investing CF went from €-650m to €-6,113m as capex remained unchanged. Financing CF swung from €-1,690m to €5,475m, fuelled by €1,477m proceeds from the capital increase, €990m from the issuance of the hybrid bond and €3,409m (€-1,214m) net gross debt proceeds. Management proposes a dividend of €3.30 (pre-adjusted: €3.40; adjusted for the value of rights issued in December 2015: €3.20) per share at the next AGM on 10 May 2016. For 2016, management expects REBITDA to grow in high single-digits and FCF to exceed €650m. The annual report should be available within the next few weeks.
An organic flop: when does this change?
30 Oct 15
In Q3, Solvay again generated no organic growth, but sales were up +5% to €2,714m. The gross profit margin clearly improved 1.7pp to 26.9%. EBITDA came in slightly weaker (€425m after €430m) and net profit attributable to shareholders declined 10% to €103m despite a lower income tax rate. Operating CF went up +16% to €420m, predominantly driven by the €47m swing in NWC to €18m inflow. Investing CF (€-212m after €-299m) was helped by divestments of subsidiaries and the sale of other investments. Financing CF (€-130m after €-264m) mainly benefited from a swing from net gross debt repayment (€-223m) to purchase (€17m). Management continued to fail to give clear guidance, but is confident of generating solid REBITDA growth in 2015.
Cytec – the next Rhodia or a real change?
30 Jul 15
Solvay announced the acquisition of Cytec, the second largest player in aerospace composite materials, for an enterprise value of US$6.4bn. The total cash consideration will be US$5.5bn, reflecting a 27% premium on the volume-weighted average closing share price over the last quarter. Financing has to be fully financed and will consist of a €1.5bn rights issue, €1.0bn hybrid instruments and senior debt issuance. The acquisition is expected to be closed in Q4 15.
Innovate, specialise, integrate, globalise
01 Dec 16
Carclo has refocused investment in its established businesses (Technical Plastics and LED Technologies), where a differentiated offer and long-term relationships with customers provide good earnings visibility and more certainty of a return. This strategy delivered strong revenue and profits growth during H117. This growth appears set to continue, underpinned by long-term relationships with blue-chip customers. We leave our estimates and indicative valuation broadly unchanged and introduce our estimates for FY19.
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
30 Nov 16
Results have yet again beaten our forecasts and the management has now delivered the fourth consecutive year of earnings above expectations. The share price is up 41% over the last three months, and Treatt is steadily moving from commoditised sales to more value-added products. Its strategy of deep customer relationships is paying off, giving it a real competitive advantage and improving margins. The year finished strongly and momentum is due to continue in the traditionally seasonally weaker Q117. Our P&L forecasts are broadly maintained, but our fair value moves to 272p (from 240p) as a result of stronger cash flow.
N+1 Singer - Carclo - Trading in line; all divisions performing well
15 Nov 16
Trading remains positive with momentum strong in Plastics and LED. For those willing to look past the pension and dividend issues discussed previously (or for those who think bond yields will now start to help the situation), we feel that there is an attractive investment case at these levels (P/E of c.10x March 17). We remain at Buy.
15 Sep 16
COLEFAX GROUP PLC (CFX LN) | COLLAGEN SOLUTIONS PLC (COS LN) | CRAWSHAW GROUP PLC (CRAW LN) | CRONIN GROUP PLC (CRON LN) | FRANCHISE BRANDS PLC (FRAN LN) | INFRASTRUCTURE INDIA PLC (IIP LN) | MEDAPHOR GROUP PLC (MED LN) | POWERFLUTE OYJ (POWR LN) | PURPLEBRICKS GROUP PLC (PURP LN) | TRIBAL GROUP PLC (TRB LN)