By Pierre Bertrand
Solvay and Syensqo outlined new financial targets ahead of their planned separation.
EssentialCo, which will retain the Solvay name, said it is targeting for annual average organic underlying earnings before interest taxes depreciation and amortization growth at a mid-single digit percentage range.
The company, which will focus on the mono-technology businesses that had been part of Solvay’s chemicals and special chemicals segment, is also targeting underlying Ebitda margin percentage expansion in the mid to high 20s.
Solvay said its targets are for 2028.
Meanwhile, Syensqo, which will separate from Solvay as an independent, listed company said it was launching its five-year growth strategy.
That company, whose split is subject to shareholder approval on December 8, said it targets 5% to 7% net sales growth over the 2024 to 2028 period.
It added that it targets an underlying Ebitda margin in the mid-20% range by 2028 and a mid-teen range for return on capital employed.
Syensqo said that reaching its mid-term targets is expected to deliver more than 7 billion euros ($7.48 billion) cash between 2024 and 2028.
Write to Pierre Bertrand at [email protected]