Solvay to See Significant Revenue Dip in 2023

On December 9, 2023, Belgian chemical company Solvay underwent a partial demerger, resulting in the creation of two separate publicly traded companies – Solvay (EBR: SOLB) and Syensqo (EBR: SYENS). Following this, Solvay shifted its focus to chemicals crucial for sustainability, such as soda ash, peroxides, silica, and coatis, among others. Conversely, Syensqo now concentrates on specialty chemicals. Following the demerger, analysts expect a significant drop in revenues for both companies in fiscal 2023. The expected revenue decline is attributed to a combination of weakened demand and lower pricing trends.

In the case of Solvay, revenue generated from soda ash, constituting approximately 32% of the company’s total revenue in 2023, is forecasted to decline by -7% compared to the previous year. Additionally, revenues from coatis, peroxides, specialty chemicals, and silica are anticipated to decrease by -29%, -21%, -11%, and -7%, respectively. Revenue expectations are estimated to remain subdued until 2028. Between 2023 and 2028, Solvay’s total revenue is expected to decline at a CAGR of -3%.

Sector: Materials
Industry: Diversified Chemicals
Ticker: SOLB_BE