Solvay reports lower sales amid global uncertainty
Chemicals group Solvay has reported a decline in sales and earnings in the second quarter, citing ongoing geopolitical tensions and uncertainty surrounding tariffs as key factors affecting demand.
Revenue fell by almost 8 per cent year-on-year to 1.102 billion euros, due to weak demand for soda ash and within its adhesives division, Coatis. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 15 per cent to 230 million euros.
Solvay’s underlying net profit still surpassed analysts’ expectations
However, Solvay’s underlying net profit of 99 million euros surpassed analysts’ expectations. According to Bloomberg, market forecasts had predicted a profit of 91.9 million euros. However, this figure still represents a decline from 116 million euros in the same period last year.
Cautious outlook
The group issued a cautious outlook, warning that it does not expect demand to improve “in the coming months”. Consequently, Solvay has revised its full-year EBITDA guidance to between 880 million and 930 million euros.
Solvay had already reported a difficult first quarter, with sales down by 11.4 per cent
Cost-cutting efforts are expected to exceed previously announced targets, with total savings projected to exceed 200 million euros by the end of 2025.
Solvay already reported a difficult first quarter in May, with sales down 11.4 per cent and EBITDA down 20 per cent. Its base chemicals division was particularly badly affected, prompting the company to lower its full-year expectations for 2025.
© AFP PHOTO SEBASTIEN BOZON
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