Solvay showcases progress in transforming its Solutions segment
The Group held a webinar focused on consumer-facing markets
Solvay held a webinar for the investment community on the Consumer businesses that will be part of the future SpecialtyCo. Today, this sector is represented mainly by Novecare and Aroma Performance businesses, which are currently included in the Solutions business segment. This webinar marked a continuation of Solvay’s series that began in December 2021 with an ESG update, followed by the materials supplied to the Automotive industry.
“Consumer” refers to a diverse group of businesses that touch all of us in our daily lives. These are markets driven by demand from consumers and regulators for sustainable and high-performing solutions. The majority of these activities are categorized into four main areas of focus for Solvay: Agrochemicals, Home & Personal Care, Coatings, and Food, Flavors & Fragrances.
“The Solutions segment has made a remarkable turnaround since the announcement of our GROW strategy and has significantly exceeded its optimization mandate. EBITDA margins have expanded from 15% in 2018 to 19% in 2021 and returns improved by 2.5 percentage points, putting us firmly in the value-creation range,” said Ilham Kadri, CEO Solvay. “I’m so proud of our teams for this excellent progress and I am even more encouraged by the continued momentum. With 22% of circular sales, we are well advanced on the path to structurally upgrade and differentiate our portfolio towards higher-specialty solutions, taking advantage of the transition to natural, bio-sourced, renewable and circular products, such as the non-GMO biofermentation of rice bran waste. The future of these businesses as part of SpecialtyCo looks bright.“
Solvay further aspires to grow this sector by high single-digits across the mid-term, driven by:
- Sustainability which is driving premiumization, with increased demand from end-consumers for products that are bio-sourced, biodegradable, and contribute to the circular economy.
- A track record of outgrowing the market in our key areas driven by a tailored approach to develop sustainable solutions with a relentless focus on our customers’ needs.
- A proven, repeatable growth model, driven by innovation and expansion opportunities, and continuous portfolio upgrading.
Solvay is a science company whose technologies bring benefits to many aspects of daily life. With more than 21,000 employees in 63 countries, Solvay bonds people, ideas and elements to reinvent progress. The Group seeks to create sustainable shared value for all, notably through its Solvay One Planet roadmap crafted around three pillars: protecting the climate, preserving resources and fostering a better life. The Group’s innovative solutions contribute to safer, cleaner, and more sustainable products found in homes, food and consumer goods, planes, cars, batteries, smart devices, health care applications, water and air purification systems. Founded in 1863, Solvay today ranks among the world’s top three companies for the vast majority of its activities and delivered net sales of €10.1 billion in 2021. Solvay is listed on Euronext Brussels and Paris (SOLB). Learn more at www.solvay.com.