Solvay Group reported net profit increase of 16% yoy to 247 million EUR in Q3 2016 and continue to perform strongly. During the reported period, the EBITDA grew by 6% yoy to 664 million EUR, while the free cash flows rose by 14% yoy to 280 million EUR. The company succeeded to optimize its portfolio, implementing pricing growth strategy and excellence programs, which which all contributed to EBITDA margin of 23%.
However, the net sales of Solvay Group decreased slightly during the third quarter by 8% of 2016 to 2.9 billion USD, as the main reason is considered aggressive competitiveness on the European and Middle East market. The volumes sold by the company in Q3 2016 also decreased, but more slightly – by only 3%.
The demand for high-performance polymers, which are used in smart devices, was lower than in 2015. The bad result in aircraft and smart devices technologies was partly compensated by other applications such as automotive, batteries and medical. The performance of Chemicals and Functional Polymers improved profitability principally as a result of continued strong excellence initiatives.
The chemicals sector, the demand for Soda Ash was broadly in line with the prior year period. Volumes of bicarbonate were at record levels with 10% growth driven by the Thailand plant ramp up. The sales of peroxides were down due to temporary shutdowns at the two HPPO facilities related to equipment inspections. The volumes of Acetow were essentially flat year on year with stable demand across most markets except China.