Solvay faces lower sales due to 'macroeconomic uncertainty'
Chemicals group Solvay had a difficult first quarter with falling net sales and earnings, according to its quarterly results published on Thursday. The company revised its full-year expectations for 2025 to the lower end of the range previously forecast, citing "macroeconomic uncertainty".
Solvay is struggling with lower-than-expected sales. The Belgian group says the main cause is "uncertainty in the macroeconomic environment", which has led to more cautious customers, indirectly referring to US president Donald Trump's import tariffs.
“The current macro-environment is uncertain and filled with challenges that were not foreseen at the start of the year," said Solvay CEO Philippe Kehren. "However, our resilient global and local to local business model will allow us to navigate these challenges."
“The current macro-environment is uncertain and filled with challenges that were not foreseen at the start of the year"
Solvay's net sales were 1,122 million euros, an organic decline of 5.8 per cent year-on-year, while underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell organically by 5.7 per cent to 250 million euros. This was below analyst expectations of 256 million euros.
The base chemicals division was particularly hard hit, with sales down 11.4 per cent and EBITDA down 20 per cent. Base chemicals, such as soda ash and derivatives, are by far the group's most important products.
For 2025, the company said it still expected underlying EBITDA of between 1 billion and 1.1 billion euros, but now predicts it will reach the lower end of that range. In response to the news, Solvay's share price fell by 14 per cent on Thursday morning.
© PHOTO SEBASTIEN BOZON / AFP
Related news
