SYENSQO - First Quarter 2024 Results

SYENSQO FIRST QUARTER 2024 RESULTS

Brussels, May 16, 2024, 6:45 a.m. CEST

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 

Underlying (€ million)	Q1 2024	Q1 2023	YoY reported	YoY organic	Q4 2023	QoQ reported
Net sales	1,624	1,813	-10.4%	-8.3%	1,577	3.0%
EBITDA	363	473	-23.4%	-20.4%	294	23.3%
EBITDA margin	22.3%	26.1%	-380 bps	-	18.7%	370 bps
Operating cash flow	244	412	-40.9%	-	n.a.	-
Cash conversion (LTM) (1)	88.7%	n.a.	-	-	n.a.	-
Free cash flow (2)	157	255	-38.1%	-	n.a.	-
ROCE (LTM)	9.6%	n.a.	-	-	n.a.	-

Q1 2024 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 conversion of 89%; Free cash flow 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

Dr. Ilham Kadri, CEO