24 Feb 17
Nice year end
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.
Companies: SOLVAY SA
08 Nov 16
Underlying figures look good – at first sight
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).
Companies: SOLVAY SA
29 Jul 16
Stuck on its struck path
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.
Companies: SOLVAY SA
03 May 16
Babel in numbers
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.
Companies: SOLVAY SA
25 Feb 16
Where has all the performance gone?
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.
Companies: SOLVAY SA
30 Oct 15
An organic flop: when does this change?
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.
Companies: SOLVAY SA
30 Jul 15
Cytec – the next Rhodia or a real change?
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.
Companies: SOLVAY SA
29 Jul 15
Thanks to favourable FX rates
Organically Solvay continued to face a difficult terrain but variable costs' management helped profitability. Driven by favourable FX rates (+9%), Solvay’s Q2 sales were up +4% to €2,675m, but the gross profit margin improved from 25.5% to 27.0%. REBITDA increased +8% to €500m and net profit attributable to shareholders swung from €-292m to €143m due to the lack of the impairments on the discontinued European Chlorovinyls business. Q2's operating CF rose +40% to €410m mainly due to a better operating performance. Investing CF moved a notch up from €-289m to €-267m having spent less money on acquisitions. Despite some net gross dept issuance (€18m after €-305m), financing CF moved from €-85m to €-331m due to a significantly lower inflow from changes in other current financial assets (€-1m after €473m). Management continued to fail to give clear guidance, but is confident of generating solid REBITDA growth in 2015.
Companies: SOLVAY SA
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.
|27Apr17 07:00||GNW||TRANSPARENCY DECLARATION - PARTICIPATION NOTIFICATION BY BLACKROCK INC.|
|24Apr17 07:00||GNW||TRANSPARENCY DECLARATION - PARTICIPATION NOTIFICATION BY BLACKROCK INC.|
|30Mar17 06:31||GNW||Solvay to sell its polyolefin cross-linkable compounds business|
|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|
Frequency of research reports
Research reports on
28 Apr 17
N+1 Singer - T3 Trend spotting - Strategy update
In our third edition of Trend spotting we stick with our suggestion at the end of March to up European exposure and we review the recent market moves and macro trends. We comment on the recent strong performance of our growth, quality and momentum styles which we expect to continue and we examine what happened to sectors around the last general election period in 2015, adding some new colour.
Companies: AUG GNS IQE NTG SDL SPH SDY TRI VEC XAR GHT BOY CRW EMIS VCT ECK GLE GHH DATA AVON CHH DPH HILS SDM ZYT MUR RPS LWB EKF SUN UDG SYNT CINE DOTD MPM FUM CLIN RENE ATQT SERV ERGO BCA BUR DRV SCS JUP FDP GBG GTLY HW/ EAH SFR PHD CXENSE KNOS NETD G4M GFIN FUTR ULS RHL RAT FEN LOOP MYSL
28 Apr 17
N+1 Singer - Morning Song 28-04-2017
Bagir Group (BAGR LN) NED appointment and acquisition update | T3 Trend spotting Strategy update
Companies: AUG GNS IQE NTG SDL SPH SDY TRI VEC XAR GHT BOY CRW EMIS VCT ECK GLE GHH DATA AVON CHH DPH HILS SDM ZYT MUR RPS LWB EKF SUN UDG SYNT CINE DOTD MPM BAGR FUM CLIN RENE ATQT MYSL SERV ERGO BCA BUR DRV SCS JUP FDP GBG GTLY HW/ EAH SFR PHD CXENSE KNOS NETD G4M GFIN FUTR ULS RHL RAT FEN LOOP
24 Apr 17
Small Cap Breakfast
Global Ports Holding—Intention to float on Standard List of the Main Market. International cruise ports operator. Seeking $250m raise including $75m primary offer. Dorcaster—Schedule One Update. Admission now expected on AIM 3 May. RTO of Escape Hunt raising £14m at 135p. Verditek— Intention to float on AIM. On Admission, the Company's subsidiaries will be involved in advanced solar photovoltaic, filtration and absorption technologies specialising in providing environmental services. Raising £3.5m. Admission in May. Eddie Stobart Logistics— Schedule 1 update. Admission expected 25 April on AIM raising £122m. ADES International Holding— Intends to join the Standard List of the Main Market in May raising up to $170m plus a vendor sale. Provider of offshore and onshore oil and gas drilling and production services in the Middle East and Africa. Admission expected in May. Tufton Oceanic Assets– Offer extended to 9 May on specialist funds segment of Main Market to enable investors to complete further due diligence.
Companies: FISH GOAL NASA HAL SHRE BIOM MPM MORT HDT LOK
25 Apr 17
N+1 Singer - Morning Song 25-04-2017
Carpetright (CPR LN) Tougher conditions leaves forecasts towards lower end of range | Centaur Media (CAU LN) Bigger steps | Elementis (ELM LN) Positive update confirms strengthening of demand | Rathbone Brothers (RAT LN) Facing the challenge to deliver growth | Vp (VP/ LN) Another niche Hire Station deal prompts 3% EPS upgrades
Companies: CAU VP/ ELM CPR RAT
25 Apr 17
N+1 Singer - Elementis - Positive update confirms strengthening of demand
Elementis’ AGM statement confirms a positive start to the year with stronger demand evident in most markets during Q1. This reinforces our confidence that 2017 will see a return to earnings growth after the challenges of 2016. It has been a busy period strategically with the sale of the non-core US colourants business and the closure of the Jersey City facility, as well as the significant acquisition of SummitReheis. The SummitReheis deal closed on 24th March, three months earlier than originally planned, prompting a 5% earnings upgrade to FY17 this morning. In our view prospects for the coming years are bright and Elementis remains a Best Idea for 2017.
24 Apr 17
Q1 revenue numbers: flat
Syngenta released Q1 revenue numbers. Sales reached US$3.7bn (-1% both reported and at CER). The group maintains its target for FY17 of “a low single-digit growth in sales, improvement in EBITDA margin and strong cash flow generation”.
Companies: SYNGENTA AG-REG
27 Apr 17
Covestro is fun, but on a reduced stake
Q1 sales grew +12% (v: +5.9%; p: +3.5%) to €13,244m and the gross profit margin rose from 57.5% to 59.6%. EBITDA went up +15% to €3,846m and net income attributable to shareholders strongly increased +38% to 2,083m. Operating CF (-36% to €841m) does not reflect the stronger operating performance, which was burdened by higher NWC outflow (€-2,87m after €-2,228m) and a significantly lower positive contribution from discontinued activities (€15m after €770m). Investing CF (€-1,136m after €-462m) was hit by the €691m swing from inflows from financial assets to outflows. The proceeds from the reduction of Bayer’s participation at Covestro (€1,460m) was partly absorbed by net gross debt repayments (€-744m after €909m) and financing CF came in at €611m (€823m). Based on Covestro’s strong performance, management lifted FY guidance, now expecting sales to increase to around €51bn (previously: above €49m). EBITDA before one-offs is seen to increase in the low-teens (previously: a mid single-digit percentage) and core earnings per share from continuing operations by a mid to high single-digit (previously: a mid single-digit) percentage.
Companies: BAYER AG-REG
27 Apr 17
Wacker has reduced its stake in Siltronic down to 30.8% and has lost the dominating influence at the AGM. Consequently, Siltronic has to be reported as an at-equity investment starting in Q1 17. The remaining Wacker group reported +8% higher sales (to €1,219m; organic: +6%) and the gross profit margin moved from 16.5% (pro forma) to 17.6%. EBITDA was up +12% to €229m and net income from continuing operations increased +15% to €31m. Income attributable to shareholders swelled from €20m to €655m due to the proceeds from the sales of Siltronic shares (+€635m). Operating CF from continuing operations declined by 12% to €96m, suffering from a higher NWC outflow (€-82m after €-51m). Discontinued operations brought it up to €140m (€136m). Investing CF moved from €-212m to €-94m driven by lower capex as the higher investments in financial assets were more or less flattened by the proceeds from Siltronic’s deconsolidation. Financing CF (€103m after €199m) recorded lower net gross debt proceeds due to the inflow from the change in ownership interest in Siltronic. Due to the deconsolidation of Siltronic, management has adjusted FY guidance based on a pro forma level. For 2017, management now expects group sales to increase by a mid single-digit percentage and EBITDA, excluding the one-offs, should decline by a mid single-digit percentage.
Companies: WACKER CHEMIE AG
14 Mar 17
N+1 Singer - Morning Song 14-03-2017
Advanced Medical Solutions (AMS LN) Prelims slightly ahead, still no deals | Brady (BRY LN) Investment will impact profits, but provide a platform for stronger growth | Burford Capital (BUR LN) Strong growth, many opportunities | First Derivatives (FDP LN) Collaboration agreement | Gresham Technologies (GHT LN) A milestone year | Gym Group (GYM LN) In line finals | Horizon Discovery Group (HZD LN) Agreement in pre-natal diagnostics | Kalibrate Technologies (KLBT LN) Near-term challenges, building long-term value | Stadium Group (SDM LN) Strong current trading; Strategic US investment | Zotefoams (ZTF LN) Currency tailwind underpins strong PBT growth; promising HPP progress
Companies: AMS GHT SDM KLBT HZD BUR FDP BRY ZTF GYM
04 Jun 15
SP Angel Morning Report
FINNAUST MINING PLC | JOHNSON MATTHEY PLC | KEFI MINERALS PLC | METALS EXPLORATION PLC | ORTAC RESOURCES LIMITED | RAMBLER METALS AND MINING PL | SIERRA RUTILE LTD | SIRIUS MINERALS PLC | STRATEX INTERNATIONAL PLC
Companies: FAM KEFI MTL SRX SXX STI OTC RMM JMAT
03 Mar 17
Small Cap Breakfast
Venn Life Sciences*( VENN . L) | MediaZest* (MDZ.L) | Legendary Investments (LEG.L) | AFH Financial (AFH.L) | Intercede Group (IGP.L) | Gear4Music Holdings (G4M.L) | Trakm8 Holdings (TRAK.L) | Kodal Minerals (KOD.L) | Applied Graphene Materials (AGM.L) | Velocys (VLS.L)
Companies: VENN MDZ LEG AFHP IGP G4M TRAK KOD AGM VLS
25 Apr 17
Umicore reported some Q1 trading figures with sales from continuing operations up by +13% driven by strong demand in clean mobility. Management gave FY guidance, expecting recurring EBIT in a €370-400m range (continued operations: €355m-385m).
26 Apr 17
Weak Q1 17 numbers on low prices again
Revenues in Q1 17 reached NOK22,835m (-8.8%), EBITDA NOK3,216m (-36.4%) EBIT NOK1,524m (-55.2%) and net income NOK1,692m (-39.9%). Net debt at the end of Q1 17 was NOK14,454m (NOK12,802m at the end of FY16 and NOK8,465m a year ago).
Companies: YARA INTERNATIONAL ASA
19 Apr 17
That sure took everyone by surprise! The FTSE-100 index plummeted 2.5% yesterday, its worst fall since the aftermath of the EU referendum pushing it back to February’s low, as market weighed a 1.6% jump in Sterling to a four-month peak against the US$ following Theresa May’s announcement of a snap general election on June 8th. Behind the PM’s ‘one-issue’ campaign is the prospect of an increased majority for the ruling Conservatives with the expectation this will strengthen the Government’s hand with forthcoming Brexit negotiations. Tumbling iron ore prices, which fell to a near six-month low on Tuesday, also contributed to the fall and left a number of major mining stocks were severely punished. BHP Billiton, Glencore and Anglo American, for example, all lost more than 5% during the European session. US indices tracked this with banking and health-care sectors sliding as individual quarterly results disappointed. Leading the former was Goldman Sachs Group, whose trading gains fell short of those recently posted by peers, while Johnson & Johnson tumbled after it detailed what analysts considered to be rather underwhelming sales. After a batch of disappointing recent US macro releases and a sharp rise in geopolitical tensions, with more than 60 firms in the S&P 500 expected to report this week, including more top tier banks and major industrials, continued evidence of good corporate health remains absolutely key to equities sustaining their positive momentum. Reflecting on this, some investors yesterday took opportunity yesterday to lock-in profits of recent months, reinvesting instead into safe havens like Gold, the Yen and Government Bonds. The yield on 10-year U.S. Treasuries, for example, fell to 2.177%, from 2.248% Monday, its lowest close since 10th November. Asian equities also suffered broad declines this morning amid continuing regional tensions, led by the Shanghai Composite Index which was down more than 1% to a two-month low, putting losses since Friday at more than 3%; elsewhere, Australia's S&P/ASX 200 fell around 0.5%, while the Nikkei slipped between gains and losses to end marginally in the positive helped by a softer Yen. National security concerns meanwhile remain high and rising, with the US being forced overnight to intercept Russian bombers off the coast of Alaska for the first time since 2015, while Washington expressed concerns regarding Iran’s role in supporting terrorism and two men were detained on suspicion of planning an imminent terror attack in the French city of Marseille after pledging allegiance to Islamic State. Traders consider the US$ will remain under pressure until next Tuesday’s Military Foundation Day in North Korea, which some believe may be the most obvious day for premier Kim Jong-un to make a defiant military gesture to Donald Trump’s administration. Selling pressure in crude futures continued during the Asian session, amid renewed worries about oversupply following weeks of gains on hopes of more constrained global output. UK corporates due to release earnings or trading updates today include AB Foods (ABF.L), Burberry group (BRBY.L), Bunzl (BNZL.L), Rio Tinto (RIO.L) and Rentokil Initial (RTO.L). No macro releases are due from the UK on Wednesday, but the EU is due to publish its harmonised Consumer Prices for March along with its February trade balance. The US meanwhile is schedule to provide its MBA Mortgage Applications and the Fed Beige Book. With investors convinced that Theresa May will enjoy an improved majority post 8th June, Sterling may well continue to appreciate against the presently out of favour US$ and Euro. This, along with heightened international uncertainty reducing appetite for risk, suggests equities in London will again open weaker once again, with the FTSE-100 seen down over 20 points in early trade.
Companies: KRS WSG 362 DGOC MTFB