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Organic volume growth spurs Q3 Solvay sales
17 Nov '14
3 min read
Spurred by organic volume growth of 5 per cent, third quarter of 2014 net sales, at Solvay Group rose 7.9 per cent from the corresponding quarter of 2013.
Helped by a decent organic growth rate from across all its business segments, France based Solvay Group net sales went up by 7.9 per cent from the prior year quarter to €2,585 million.
“While prices stood stable and the conversion impact from foreign exchange rates was marginal, net sales in our growth engines grew significantly”, Solvay said.
Net sales expanded 27 per cent in Advanced Formulations and 9.4 per cent in Advanced Materials, both supported by strong innovation-driven demand and each delivering organic volume growth of 10%.
Net sales advanced 2.3 per cent in Performance Chemicals underpinned by good pricing and stable volumes, while they fell 7.8 per cent in Functional Polymers, mainly from divestment of Benvic.
Solvay said its REBITDA grew close to double-digits at 9.5 per cent to €458 million in the reporting quarter from €418 million in the third quarter of 2013.
“Strong demand and operating leverage contributed to a volume-related profit expansion of 11 per cent or €45 million,” the chemicals and fibres producer explained.
Solvay continued to benefit from positive pricing power as selling prices slightly lifted REBITDA by €6 million, year-on-year, while raw materials costs fell €24 million, resulting in a €30 million positive net price effect on REBITDA.
All operating segments contributed to Solvay’s REBITDA hike, but the Advanced Formulations segment was by far the strongest contributor along with Advanced Materials.
The Group’s REBITDA margin on net sales improved 26 basis points to 17.7 per cent in the quarter, with all operating segments benefiting from margin expansion.
Adjusted EBIT in the quarter under review grew 10 per cent to €254 million from €231 million in the prior year quarter.
Net expenses increased to €68 million from €60 million in 2013 and net charges on net debt fell to €29 million in the third quarter of 2014 from €44 million in 2013.
According to Solvay, negative cost of carry decreased significantly following the repayment of €1.3 billion of gross debt in the first half of this year.
In the reporting quarter, net result from continued operations was €118 million, up from €109 million in the same quarter of 2013.
However, net result from discontinued operations totalled €23 million against €20 million in the corresponding 2013 quarter, mainly related to the European chlorovinyls and Eco Services activities.
Adjusted net income amounted to €141 million from €129 million in the third quarter of 2013, while adjusted basic earnings per share reached €1.60. (AR)
Helped by a decent organic growth rate from across all its business segments, France based Solvay Group net sales went up by 7.9 per cent from the prior year quarter to €2,585 million.
“While prices stood stable and the conversion impact from foreign exchange rates was marginal, net sales in our growth engines grew significantly”, Solvay said.
Net sales expanded 27 per cent in Advanced Formulations and 9.4 per cent in Advanced Materials, both supported by strong innovation-driven demand and each delivering organic volume growth of 10%.
Net sales advanced 2.3 per cent in Performance Chemicals underpinned by good pricing and stable volumes, while they fell 7.8 per cent in Functional Polymers, mainly from divestment of Benvic.
Solvay said its REBITDA grew close to double-digits at 9.5 per cent to €458 million in the reporting quarter from €418 million in the third quarter of 2013.
“Strong demand and operating leverage contributed to a volume-related profit expansion of 11 per cent or €45 million,” the chemicals and fibres producer explained.
Solvay continued to benefit from positive pricing power as selling prices slightly lifted REBITDA by €6 million, year-on-year, while raw materials costs fell €24 million, resulting in a €30 million positive net price effect on REBITDA.
All operating segments contributed to Solvay’s REBITDA hike, but the Advanced Formulations segment was by far the strongest contributor along with Advanced Materials.
The Group’s REBITDA margin on net sales improved 26 basis points to 17.7 per cent in the quarter, with all operating segments benefiting from margin expansion.
Adjusted EBIT in the quarter under review grew 10 per cent to €254 million from €231 million in the prior year quarter.
Net expenses increased to €68 million from €60 million in 2013 and net charges on net debt fell to €29 million in the third quarter of 2014 from €44 million in 2013.
According to Solvay, negative cost of carry decreased significantly following the repayment of €1.3 billion of gross debt in the first half of this year.
In the reporting quarter, net result from continued operations was €118 million, up from €109 million in the same quarter of 2013.
However, net result from discontinued operations totalled €23 million against €20 million in the corresponding 2013 quarter, mainly related to the European chlorovinyls and Eco Services activities.
Adjusted net income amounted to €141 million from €129 million in the third quarter of 2013, while adjusted basic earnings per share reached €1.60. (AR)
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