Orbia Advance Corporation (Orbia) has registered 6% increase in in its net revenues for Q4 2020 driven by strong PVC prices in Vestolit and continuous demand recovery in Wavin and Dura-Line. EBITDA of $383 million increased 30% propelled by the recovery of the construction sector. Vestolit delivered solid performance amidst a tightening PVC market while Wavin continued to show strong performance in EMEA and LatAm. EBITDA margin reached 22% increasing 401 basis points.

For the full year 2020, the company’s net revenues decreased 8% to $6.4 billion as the impact from the COVID pandemic in Q2 was not fully offset by the strong second half rebound. EBITDA of $1.3 billion, decreased 3% after declining nearly 30% in Q2. EBITDA margin of 21% increased 100 basis points. Consolidated net income of $319 million, decreased 2%.

“At Orbia, resilience has played a central role in our transformation over the past two years. Our aim is to provide innovative solutions that help us fulfill our purpose to advance life around the world. We could not imagine the disruption we would face with COVID. But the most difficult times can be the ones in which the true bravery and grit of people emerges. In 2020, we saw both as we became more resilient in going the extra mile for our stakeholders. I must first thank and pay tribute to Orbia’s 22,000+ associates who have worked hard to keep our operations running smoothly and serve our customers. Everyone has given their all. We worked diligently to protect the health, safety and well-being of our team by applying strict COVID protocols,” Sameer Bharadwaj, CEO, Orbia, said.

“We acted quickly at the onset of the pandemic, mobilizing our people, aggressively preserving capital, and increasing connectivity with our customers, which resulted in strong earnings recovery and margin expansion, as well as robust free cash flow. At the same time, we prioritized growth and critical efficiency investments, while further strengthening the balance sheet through debt reduction.

“Our diversified portfolio of market-leading businesses and increased focus on value-added solutions supported our resiliency positioning Orbia well for 2021. We are focused on executing our growth strategy underpinned by strong secular trends in 5G, infrastructure, and climate change, while capturing global demand across our businesses. The extent of the economic impact of COVID is still uncertain. But by staying true to our purpose, in working bravely, responsibly, and innovatively to meet global needs, we can keep contributing to sustainable development as we create value for all.”

Assuming no significant unexpected disruptions related to COVID, Orbia expects EBITDA to increase between 4 to 7% in 2021 driven by recovery in demand in several of our businesses. We are also expecting CAPEX in the range of $350 million to $400 million for next year.

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