Improved year-on-year volume momentum in Q1 2024; Underlying EBITDA of €363 million with strong sequential margin improvement to 22.3% & full year 2024 outlook reiterated
Highlights
Net sales of €1.6 billion increased by 3% sequentially with improved volume momentum, most notably in Novecare and Specialty Polymers. On a year-on year basis, net sales decreased by 8% organically versus a record Q1 2023, driven by lower volumes (2%) and decrease in prices (6%), most notably in the Consumer & Resources segment and Specialty Polymers.
Underlying EBITDA of €363 million increased by 23% sequentially, in-line with prior outlook
EBITDA margin of 22.3% increased by approximately 370 basis points sequentially, driven by gross margin improvements in all businesses, most notably in Composite Materials, Specialty Polymers and Novecare, reflecting the quality of our offering and strong control of operations and pricing
Underlying net profit of €156 million
Operating cash flow of €244 million, resulting in cash conversion1 of 89%; Free cash flow2 of €157 million
Balance sheet: net debt reduced to €1.5 billion (versus €1.6 billion at the end of 2023) and leverage ratio of 1.0x
ILHAM KADRI, CEO OF SYENSQO said“In addition to meeting our outlook for the first quarter, I am encouraged by the improved momentum we have seen since the start of the year. We saw strong margin expansion, with sequential improvements in volumes and net sales in both Materials and Consumer & Resources.. However, it is still too early to call it a trend, and we therefore reiterate our full year outlook.
“Our first five months as Syensqo have seen us ensure a smooth transition for our customers, while further sharpening our innovation and commercial priorities, fully aligned with their needs and the unique value we offer. In addition we announced new and ambitious partnerships, launched new disruptive technologies to advance our leadership positions in aerospace, electric vehicles and specialty coatings, as well as making a bolt-on investment in high value dermocosmetics to enhance our portfolio in the consumer market”.
