SLVYY - Solvay: Still Some Non-Recurring Pressures
2024-07-21 12:48:03 ET
Summary
- Solvay, focused on soda ash, is facing challenges with declining prices and volumes, impacting EBITDA.
- A cost control plan is in place, but some reductions are not sustainable; full cost reduction plan of 300 million EUR/year by 2028, which is more than 25% of EBITDA.
- Guidance indicates continued pressure this year on the business due to factors like unsustainable demand from China and pending separation costs.
- There might be a value case, but the end market demand is not showing signs of solid growth, we'd rather wait some quarters before considering it again.
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Solvay: Still Some Non-Recurring Pressures