Syensqo, a specialist Belgian chemical firm which separated from the multinational Solvay group at the end of last year, reported "encouraging" first-quarter results on Thursday.
The company's net revenue climbed 3% between the final quarter of 2023 and the first quarter of 2024, from €1.577 billion to 1.624 billion. Synesqo said the increase was due to a surge in sales volumes.
However, sales for the first quarter were 10.4% lower than €1.813 billion in the first quarter of 2023 (before Synesqo separated from the Solvay group).
Earnings before interest, taxation, depreciation and amortisation (EBITDA), a measure of profit, grew by 23.3% between the final three months of 2023 and the first quarter of this year, from €294 million to €363 million.
On an annual basis profits also dropped, with EBITDA falling by 23.4% in the first quarter of the year compared to the same period last year when profits reached €473 million.
"The first quarter of 2023 was the peak of our performance," said Syensqo’s finance director, Christopher Davis, at a press conference. "The annual drops can be attributed to rising prices, reduction in volume, and exchange rates," he said.
Meanwhile, CEO Ilham Kadri described the results as "in line" with the market. "The worst is behind us; these results are uplifting," she said, highlighting new partnerships in the aerospace, electric vehicle, and luxury derma-cosmetic realms.
Despite the bullish sales trends, the publicly-traded company warned that "the rhythm of a global macroeconomic recovery remains uncertain."
It reiterated its 2024 forecast, projecting an underlying Ebitda between €1.4 billion and €1.55 billion, and a free cash flow ranging from €400 to €500 million.
"We reaffirm our outlook and objectives following our recent performance relative to the last quarter of 2023. I remain extremely confident in our company’s long-term growth," said Kadri.
Belgian multinational Solvay began operation in 1863, from a technological breakthrough by founder Ernest Solvay in the soda ash production process. The company now employs more than 9,000 globally and is listed on the Euronext Brussels and Paris stock exchanges.
In December of last year, Solvay separated its business into two independent entities, spinning off its more speciality and innovative materials production into a separate public company, Synesqo SA. Meanwhile, Solvay SA continues to focus on commodities, such as soda ash, peroxides, silica, and coatis.
