Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on SOLVAY SA. We currently have 8 research reports from 1 professional analysts.
|24Feb17 06:00||GNW||SOLVAY GROUP FINANCIAL REPORT - FOURTH QUARTER & FULL YEAR 2016 - HIGHLIGHTS|
|23Feb17 06:01||GNW||Solvay completes the sale of its Vinythai stake to AGC Asahi Glass|
|17Jan17 06:30||GNW||Solvay restates 2015 and 2016 financial information following recent portfolio transformation steps|
|14Dec16 06:00||GNW||Solvay to sell its stake in Vinythai to AGC Asahi Glass|
|07Dec16 06:00||GNW||Solvay continues its transformation with the sale of its cellulose acetate tow business|
|06Dec16 07:00||GNW||TRANSPARENCY DECLARATION - PARTICIPATION NOTIFICATION BY BLACKROCK, INC|
|23Nov16 07:00||GNW||PARTICIPATION NOTIFICATION BY BLACKROCK, INC|
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Nice year end
24 Feb 17
Solvay reported +2% higher sales to €2,767m and the gross profit margin strongly improved from 24.8% to 27.3% in Q4. EBITDA moved strongly from €350m to €534m and net profit attributable to shareholders came in at €245m (€37m). Operating CF improved +17% to €660m, pushed rather by the stronger operating performance than the lower NWC inflow. The previous year’s quarter had been impacted by the payments for the Cytec acquisition (€4.8bn), which pushed investing CF to €-5,042m, but it come in at a more normal level (€-422m) in Q4 16. Also linked with the acquisition was financing CF which recorded financing measures totalling €5.5bn. Financing CF swung from €5,429m to €-291m due to the lack of some financing measures and the swing to net gross debt repayments (€-169m after €3,044m). Management proposes a +5% higher gross dividend of €3.45 (€3.30) per share at the AGM on 9 May 2017. For 2017, management expects underlying EBITDA to grow mid-single digit and FCF from discontinued operations is seen as being above €800m due to higher EBITDA and lower capex. The Annual Report will be available within the next few weeks.
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.
N+1 Singer - N1S Trend spotting - Strategy update
08 Mar 17
In this new product we present some strategy theme updates arising out of our latest analysis of macro trends and economic data and our innovative Quant work. We also look at upcoming events and suggest topping up on some of our Best Ideas for 2017.
Small Cap Breakfast
03 Mar 17
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Panmure Morning Note 21-3-2016
21 Mar 16
Full-year results have come in ahead of our expectations at both the top and bottom line, with the period representing an important phase in the evolution of the business. Structural organisation and divisional priorities are further focused on sustaining and growing the specialty materials business and we note a strong signal of intent with regards to receptivity towards increased investment in the business and/or M&A opportunities. Our investment thesis on the business as it presently stands remains, and we note the opportunity to use this as a platform for strategic growth.
Persil’s strong contribution
11 Aug 16
Stronger FX headwinds (-5%) ate up more than the solid organic performance (+3%), so Q2 sales slightly declined (-1% to €4,654m), but the gross profit margin improved from 48.1% to 49.0%. EBITDA rose +5% to €875m and net income attributable to shareholders increased by +8% to €561m. Operating CF nearly tripled (€606m after €204m), mainly driven by the NWC meltdown (€-105m after €-359m) enlivened by the swing to payables inflow and lower income tax payments. Investing CF soared up to €-468m (€-198m), burdened by higher outflows for acquisitions (detergent business in Nigeria and hair care business in Africa/Middle East). Financing CF (€-358m after €-27m) saw higher dividend payments, lower net gross debt proceeds and a significant weaker inflow from other financing transactions. Management confirmed FY guidance, still expecting an organic sales growth of 2-4%, an adjusted EBIT margin above 16.5% (around 16.5%) due to a lower share from emerging markets and an adjusted EPS growth of 8-11%.
Another quarter of weaker sales, but profitability up
10 Aug 16
Q2 sales were down 8% (prices: -7%; volume: +1%; FX: -1%) to €1,943m, but the gross profit margin strongly rose from 23.0% to 25.0%. EBITDA came in slightly weaker (-2% to €291m) and net profit attributable to shareholders dropped 14% to €75m, facing €-8m (nil) of minority interest. Operating CF strongly moved up (+51% to €180m), lacking the previous year’s quarter minus-sign-carrying disposal gains and lower NWC outflows (€-79m after €-101m). Investing CF (€-981m after €-151m) absorbed the payments for financial assets investing in the purchase price for the ARLANEXO share and a €200m cash outflow for the addition to the German pension fund assets. Financing CF swung from €-105m to €1,115m, primarily due to the €1,194m inflow for Saudi Aramco’s interest. Management again lifted FY 2016 guidance, now expecting EBITDA pre one-offs in the €930-970m (€900-950m) range.