Solutions & Specialties
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1st quarter 2022 |
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1st quarter 2023 |
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Change |
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Sales (external) |
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€2,222 million |
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€1,883 million |
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–15.3% |
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Intersegment sales1 |
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€9 million |
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€8 million |
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–11.1% |
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Sales (total) |
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€2,231 million |
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€1,891 million |
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–15.2% |
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Change in sales (external) |
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Volume |
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–0.5% |
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–15.4% |
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Price |
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19.4% |
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–0.5% |
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Currency |
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5.9% |
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0.6% |
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Portfolio |
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20.5% |
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0.0% |
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Sales by region (external) |
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EMLA |
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€873 million |
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€755 million |
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–13.5% |
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NA |
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€501 million |
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€485 million |
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–3.2% |
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APAC |
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€848 million |
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€643 million |
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–24.2% |
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EBITDA2 |
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€224 million |
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€165 million |
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–26.3% |
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EBIT2 |
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€152 million |
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€63 million |
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–58.6% |
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Cash flows from operating activities3 |
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(€101 million) |
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(€5 million) |
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–95.0% |
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Cash outflows for additions to property, plant, equipment and intangible assets |
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€45 million |
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€43 million |
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–4.4% |
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Free operating cash flow3 |
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(€146 million) |
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(€48 million) |
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–67.1% |
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In the Solutions & Specialties segment, first-quarter sales in 2023 were down 15.3% to €1,883 million (previous year: €2,222 million). The main driver of this trend was a drop in volumes sold, which had a negative effect of 15.4% on sales. At the same time, lower average selling prices had a decreasing effect of 0.5% on sales. Both factors arose in particular from weaker demand. In contrast, exchange rate movements had a sales increasing effect of 0.6%.
Sales in the EMLA region were down by 13.5% to €755 million (previous year: €873 million), driven by a significant drop in volumes sold. However, higher average selling prices increased sales considerably. Exchange rate movements had no notable effect on sales. The NA region’s sales declined by 3.2% to €485 million (previous year: €501 million), primarily due to a significant decline in volumes sold. Exchange rate movements, on the other hand, had a slightly positive effect on sales. The selling price level remained stable compared with the prior-year quarter. Sales in the APAC region declined by 24.2% to €643 million (previous year: €848 million), with lower volumes sold and a reduction in average selling prices both leading sales significantly lower. In addition, exchange rate movements had a slight negative effect.
In the first quarter of 2023, EBITDA in the Solutions & Specialties segment was down 26.3% on the prior-year quarter, declining to €165 million (previous year: €224 million). This was chiefly due to a decrease in volumes sold for demand-related reasons. In contrast, a rise in margins had a positive effect as lower raw material prices outweighed the lower selling prices. Both lower provisions for short-term variable compensation and exchange rate movements also contributed to the rise in EBITDA.
In the first quarter of 2023, EBIT fell by 58.6% to €63 million (previous year: €152 million).
Free operating cash flow improved by 67.1% in the first quarter of 2023 to €–48 million (previous year: €–146 million). This was mainly driven by a smaller amount of cash tied up in working capital than in the prior-year quarter, caused above all by changes in inventories and trade accounts receivable.