Syensqo’s Fourth Quarter and Full Year 2024 Results:
Syensqo, a leading global materials technology company, recently announced its financial results for the fourth quarter and full year ending December 31, 2024. The company reported a 5% year-on-year organic growth in EBITDA in Q4, driven by strong cash flow generation in a challenging market environment.
Q4 2024 Highlights:
Net sales for the quarter amounted to €1.6 billion, an increase of 2% year-on-year organically. This growth was driven by higher volumes (+3%) and partially offset by lower pricing (-1%). On a sequential basis, pricing increased by 1% compared to Q3 2024. Gross profit remained approximately flat year-on-year at €482 million, with a gross margin of 30.2%. Underlying EBITDA came in at €298 million, representing a 5% year-on-year organic growth.
Underlying EBITDA Growth Drivers:
The Materials segment contributed €150 million to the organic EBITDA growth, while the Consumer & Resources segment added €50 million. Dr. Ilham Kadri, Syensqo’s CEO, stated, “Our sharper focus and a deeper understanding of our customers’ needs have given us more clarity around how we will accelerate our innovation to outperform our markets and increase returns.”
Full Year 2024 Highlights:
For the full year, net sales decreased by 3% year-on-year organically to €6.6 billion. This decline was mainly due to lower pricing (-4%), partially offset by higher volumes (+1%). Double-digit growth was reported in the Composite Materials segment. Gross profit was €2.2 billion, including a net pricing impact of €-97 million, resulting in a gross margin of 33.8%. Underlying EBITDA was €1.4 billion, in-line with expectations. The EBITDA margin stood at 21.5%, and underlying net profit was €553 million.
Cash Flow and Balance Sheet:
Operating cash flow increased by 77% year-on-year to €345 million, while free cash flow was €159 million. The net debt stood at €1.86 billion with a leverage ratio of 1.3x. Syensqo also announced a €300 million share buyback program at the end of Q3 2024. A dividend for 2024 of €1.62 (payout ratio of 31%) will be proposed to the 2025 Annual General Meeting by the Board of Directors.
Impact on Consumers:
Although Syensqo’s results do not directly impact consumers, the company’s focus on innovation and understanding customer needs may lead to the development of new and improved materials and technologies. These advancements could potentially result in better products and services for consumers in various industries, such as automotive, construction, and electronics.
Impact on the World:
Syensqo’s financial performance and strategic initiatives can influence the global materials technology industry. The company’s continued focus on innovation and customer needs could lead to increased competition and advancements in materials technology. Additionally, Syensqo’s commitment to sustainability through its materials could contribute to a more eco-friendly and circular economy.
Conclusion:
Syensqo’s fourth quarter and full year 2024 results demonstrate the company’s ability to generate strong cash flow and maintain profitability in a challenging market environment. The organic growth in EBITDA, driven by the Materials and Consumer & Resources segments, underscores Syensqo’s strategic focus and commitment to meeting customer needs. The company’s continued innovation and sustainability initiatives may ultimately lead to positive impacts on consumers and the world as a whole. Stay tuned for further updates on Syensqo’s progress.
- Syensqo reports 5% year-on-year organic growth in EBITDA in Q4 2024.
- Net sales of €1.6 billion increased by 2% year-on-year organically.
- Underlying EBITDA of €298 million grew by 5% year-on-year organically.
- Operating cash flow increased by 77% year-on-year to €345 million.
- Syensqo’s focus on innovation and customer needs may lead to better products and services for consumers.
- The company’s commitment to sustainability could contribute to a more eco-friendly and circular economy.
