Veolia Environnement: Key Figures at 30 September 2024
(non audited IFRS data)
Sustained Growth Dynamic and Solid Operational Performance Confirming the Good Start of GreenUp Strategic Program
Objectives Fully Confirmed
- Sustained revenue growth of +5.1%(1) driven by Booster activities up +6.9%(1)
- Solid operational performance with a strong EBITDA increase of +5.6% (2) , supported by revenue growth, operational efficiency as well as synergies ahead of annual target already achieved at end of September
- Annual cumulative synergies target raised to above €430m at end 2024, over a total plan of €500m by 2025
- Continued dynamic capital allocation policy with €1bn+ of non-strategic asset divestments closed since beginning of the year
- Objectives for 2024 and GreenUp 2024-2027 fully confirmed
“Driven by a sustained growth and a solid operational performance, our results demonstrate the robustness of our value-creation model and our ability to move forward with agility, even in an uncertain environment. The increase in EBITDA and the steady improvement in our margin are in line with our GreenUp program objectives and confirm the relevance of our strategic orientations.
The relevance of our positioning also translates into the growth of our boosters activities, up +6.9%(1), driven by innovative offerings in water technologies and good momentum in hazardous waste treatment, notably in
Our new BeyondPFAS offering, which will enable us to target
In addition to this momentum, strict operational management has enabled us to move ahead with our synergies plan faster than expected and to raise our annual ambition.
Building on these strengths and bolstered by the underlying trends driving demand in our sector, we continue to grow, confirming all our objectives - 2024 and GreenUp - while dynamically adapting to the challenges of the current economic climate.”
(1) At constant scope and forex excluding energy prices (2) At constant scope and forex
Sustained revenue growth of +5.1%(
1)
to €32,543m at
- Boosters(2) activities up +6.9%(1) while strongholds(3) activities are up +4.4%(1)
- Strong growth in Water (+6.5%(4)) and Waste (+6.4%(4)). Revenue increase in Energy (+0.8%(1)) with sustained high levels of profitability
- After taking into account the effect of lower energy prices, total Group revenues are up +1.7%(4), after +0.4%(4) during the first half
Solid operational performance with EBITDA growth to €4,936m, up +5.6%(4), within the guidance range of +5% to +6%(4):
- €296m in efficiency gains, for an annual target of €350m
- €96m in synergies, i.e. accumulated amount of €411m ahead of annual target of €400m, which is now raised to €430m
Current EBIT up +6.4%(4), to €2,601m
Dynamic capital allocation policy contributing to value creation:
- Net capex of €2,609m during the first nine months
-
~€1bn of non-strategic asset divestments closed since beginning of the year, including notably the disposals of SADE, as well as
Lydec and sulfuric acid regeneration activities inNorth America (RGS) during the third quarter - ~€700m of targeted acquisitions signed in priority activities
Net financial debt(5) well under control at €18,892m, with a leverage ratio expected below 3x at end 2024
Objectives for 2024 and GreenUp 2024-27 fully confirmed
In €m |
9M 2024 |
9M 2023 |
Var. vs 9M 2023 at constant scope and FX |
Revenue |
32,543 |
33,161 |
+1.7% +5.1% excl. energy prices |
EBITDA |
4,936 |
4,793 |
+5.6% |
EBITDA margin |
15.2% |
14.5% |
+72bps (current variation) |
Current EBIT (5) |
2,601 |
2,518 |
+6.4% |
Net capex |
2,609 |
2,532 |
|
Net financial debt (5) |
18,892 |
18,881 |
|
____________________
1
At constant scope and forex excluding energy prices
2
Boosters activities: Water Technologies, Bioenergy, Flexibility and Energy Efficiency, Hazardous Waste Treatment
3
Strongholds activities: Municipal Water, District Heating and Cooling Networks, Solid Waste
4
At constant scope and forex
5
Excluding Suez PPA
Detailed key figures at
Group consolidated revenues amounted to
Revenue growth by effect breaks down as follows:
-
The currency effect was -
586 million euros (-1.8%), mainly reflecting fluctuations in Argentinian, Chilean and Czech currencies, partially offset by an improvement in the Polish currency6. -
The perimeter effect of -
582 million euros (-1.8%) mainly includes the impact of the disposals of SADE onFebruary 29, 2024 , of RGS (North America ) onAugust 1st, 2024 and ofLydec onSeptember 4th, 2024 , partly offset by the acquisition ofHofmann (Germany) in the first quarter 2024. -
The commodity price effect (corresponding to changes in energy and recyclate prices) amounted to
-1,093 million euros (-3.3%), due to lower energy prices (-1,152 million euros ), mainly in Central andEastern Europe , slightly attenuated by the positive effect of recyclate prices (+56 million euros ). -
The climate effect amounted to
-132 million euros (-0.4%), mainly in Central andEastern Europe , due to a very mild winter in the first half impacting energy sales, with no impact in the third quarter. -
Intrinsic growth (+5.4%) was driven by positive commercial and price effects. The Commerce / Volumes / Works effect amounted to
+595 million euros (+1.8%), driven by good commercial momentum, healthy water and waste volumes, as well as strong growth in Water Technologies activities. Favorable price effects amounted to+1,179 million euros (+3.6%), mainly due to tariff indexations and price increases in water and waste activities.
____________________
6
Main currency impacts: Argentine peso (-422 million euros), Chilean peso (-83 million euros) and Czech koruna (-75 million euros), compensated by Polish zloty (+127 million euros) and British pound (+52 million euros)
Revenues progressed across all operating segments
Sales at
Revenues in
-
Water
France sales of2,310 million euros were up +3.8% on a like-for-like basis, mainly fueled by the +4.5% positive effect of tariff indexations. -
Sales of Waste
France amounted to2,222 million euros and rose by +2.1% on a like-for-like basis due to the positive effect of tariff indexation and prices increases and the rising prices for recycled materials since April, which offset volumes impacted by commercial selectivity in order to increase margins. -
Special Waste Europe sales reached
1,680 million euros , up +8.4% on a like-for-like basis, mainly due to the increase in tariffs for hazardous waste treatment and sanitation maintenance activities, which offset the impact of lower oil prices. First nine months volumes were broadly resilient compared with 2023.
Revenues in
-
In Central and
Eastern Europe , sales stood at7,467 million euros , down -9.7% on a like-for-like basis, heavily impacted by lower energy prices and to a lesser extent by an unfavorable climate effect (-122 millions euros ) due to a milder winter than last year during the first half. Water activities benefited from volumes up +3.2% and tariff indexations, while Waste activity inGermany benefited from good C&I volumes and from higher recycled cardboard prices. -
In Northern
Europe , revenues of3,172 million euros rose by +4.1% on a like-for-like basis. This increase was mainly attributable to sales in theUnited Kingdom , up +4.2% on a like-for-like basis, predominantly in the waste activity, which benefited from tariff indexation and increased volumes, particularly in incineration, as a result of very good plant availability. -
In Iberia, sales stood at
2,003 million euros , up +4.1% on a like-for-like basis. Water activities mainly benefited from tariff increases, while volumes were down slightly due to drought episodes. Energy activities were impacted by lower energy prices. -
Italy generated revenues of664 million euros , down -3.6% on a like-for-like basis, mainly due to lower energy prices, with no impact on margin due to a parallel decrease in energy purchase costs.
Revenues in Rest of the world reached
-
Revenue stood at
1,390 million euros inLatin America , up +22.8% on a like-for-like basis. This was mostly driven by good waste volumes, notably inBrazil andColombia , the effect of tariff reviews on water activities inChile , and the impact of hyperinflation inArgentina (offset by the devaluation of the Argentine peso). -
In
Africa Middle-East , revenues totaled1,653 million euros , up +3.7% on a like-for-like basis, mainly driven by the growth of energy services in theMiddle East and the increase in activity inMorocco . -
In
North America , revenues reached2,515 million euros , up +2.5% on a like-for-like basis. The Hazardous Waste activity performed strongly, boosted by price increases and strong commercial activity. The Regulated Water activity benefited from higher volumes and price increases. -
Sales in
Asia amounted to1,739 million euros , down -2.0% on a like-for-like basis, mainly due to lower activity at hazardous waste treatment plants inChina andIndia . These effects were partially offset by strong commercial momentum in energy efficiency inHong Kong and water inJapan . -
In the Pacific region, sales of
1,557 million euros were up +6.3% on a like-for-like basis, mainly driven by tariff revisions and higher volumes of waste processed, as well as good commercial momentum in industrial maintenance.
The Water Technologies activity reported sales of
The organic growth of revenues by business is as follows:
-
Sales in the Water activity rose by +6.5% on a like-for-like basis to
13,324 million euros , driven by an increase in Water operations (+3.8% on a like-for-like basis) and growth in Technology and Construction (+10.9% on a like-for-like basis).-
Water Operation revenues rose by +3.8% on a like-for-like basis, to
9,561 million euros , with tariff increases across all geographies, a good level of construction activity and increasing volumes, mainly in Central andEastern Europe (+3.2%) and inthe United States (+3.1%), offsetting falls inFrance (-0.5%), due to heavy rainfall, inSpain (-0.6%) due to drought-related restrictions, and inChile (-0.1%). -
Technology and Construction sales rose by +10.9% on a like-for-like basis, to
3,763 million euros , driven mainly by Water Technologies.
-
Water Operation revenues rose by +3.8% on a like-for-like basis, to
-
Sales for Waste activity revenues increased by +6.4 % on a like-for-like basis, to
11,656 million euros . It benefited from favorable price revisions (+4.8%). The price of recyclate (mainly paper) was slightly up during the third quarter ; it represented a +0.5% sales increase compared to the first nine months of 2023. The Commerce/Volume/Works effect was positive (+1.2%), with an increase in volumes, particularly in theUnited Kingdom andAustralia . They benefited from a good commercial dynamic in commercial and industrial waste, offsetting selectivity in municipal collection. The hazardous waste activity continued to progress across all geographies outsideAsia . -
Revenues of Energy activity amounted to
7,563 million euros and varied by -12.1% on a like-for-like basis, due to lower electricity prices while heating tariffs continued to increase. The unfavorable weather impact in the first half of 2024 accounted for -1.5% of Energy revenues due to a milder winter. Energy services benefited from a solid commercial activity inBelgium , theMiddle East andHong Kong . Excluding energy prices and weather impact, Energy sales were up +2.3%.
Strong EBITDA growth, to €4,936m compared with €4,793m at
The currency impact on EBITDA amounted to
The perimeter impact of -
External factors negativelyimpacted EBITDA:
-
Changes in commodity prices (energy and recycled materials) had a net unfavorable impact on EBITDA of -
51 million euros (-1.1%), mainly due to lower energy prices net of lower energy purchasing costs, for -67 million euros , partially offset by an increase in recycled materials prices (+16 million euros ). -
The climate impact was -
38 million euros (-0.9%), mainly in Central andEastern Europe , due to a milder winter than in 2023.
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7
Main currency impacts : Argentine peso (-66 million euros), Chilean peso (-34 million euros), Czech koruna (-19 million euros), offset by Polish zloty (+15 million euros)
Intrinsic growth (+7.5%) was driven by favorable Commerce/Volumes/Works effects, by efficiency gains and by synergies generated following the integration of Suez.
-
The Commerce/Volumes/Works effect was favorable at
+118 million euros (+2.5%) and resulted from its positive effect on sales. -
The efficiency gains contributed
296 million euros over the first nine months 2024, ahead of the target of350 million euros for 2024. The plan focuses primarily on operating efficiency (68%) and purchasing (22%), and concerns all geographies :France and Special Waste Europe (23%),Europe excludingFrance (40%), Rest of the World (30%), and Water Technologies (8%). Net of gains shared with customers and time-lag effects on passing-on costs, they generated an additional144 million euros (+3.0%) in EBITDA over the first nine months 2024. This represents a retention rate of 49%. -
Synergies generated by the integration of Suez amounted to
96 million euros , thanks in particular to purchasing savings and to synergies generated in the Water technologies activities. Together with synergies already realized in 2022 and 2023, they amounted to411 million euros , leading to an increase in the cumulative target at end 2024 to above430 million euros .
Current EBIT growth of +6.4% at €2,601m, at constant scope and forex
The increase in current EBIT compared with
-
a strong growth in EBITDA (
+268 million euros at constant scope and forex); -
a rise in amortization8, including the repayment of operating financial assets (-111 millions d’euros on a like-for-like basis), mainly related to Central and
Eastern Europe (notablyUzbekistan ); -
the impact of “provisions net of capital gains on disposals, and others” of
+10 million euros at constant scope and forex; -
and the quasi stability of the share of net income from joint ventures of -
3 million euros at constant scope of forex.
The currency effect on current EBIT was negative by -
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8
Excluding Suez PPA
Well controlled net financial debt
Net free cash-flow before financial investments and dividends stood at -
The change in net free cash-flow compared to
- EBITDA growth driven by organic growth and operational and commercial efficiency gains, as well as synergies;
-
Net capital expenditure of -
2,609 million euros , which increased compared withSeptember 30, 2023 (+4.5% at constant forex). This includes in particular the on-going decarbonation projects in Central andEastern Europe , as well as investments in hazardous waste projects; -
The change in operating working capital of
-1,179 million euros , which changed by -435 million euros compared toSeptember 30, 2023 , impacted by advances received in 2023 in connection with Water Technologies projects and projects inGermany , and a calendar effect on CO2 quota purchase payments which were mainly made in the first quarter this year compared to the last quarter in 2023; -
The change in financial expenses of -
153 million euros compared withSeptember 30, 2023 , which is notably due to non-recurring income items in 2023 and the evolution of the balance of financial charges and income from deposits.
Net financial debt stood at
-
net
free cash-flow of -
147 million euro ; -
net financial
investments of
+434 million euros following the disposals of RGS,Lydec and SADE subsidiaries and the acquisition ofGroupe Hofmann GmbH ; -
repayment of hybrid debt for -
209 million euros , including coupons; -
payment of the dividends voted by the Annual Shareholders’ Meeting of
April 25, 2024 to the amount of -895 million euros ; - the capital increase in connection with the employees shareholding plan Sequoia 2024 for a net amount of 337 million d’euros.
Net financial debt is also impacted by foreign exchange gains and losses and fair value variation adjustments of
2024 Guidance fully confirmed
(1) at constant scope and forex / (2) excluding energy prices / (3) excluding Suez PPA |
GreenUp 2024-2027 targets fully confirmed
|
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Agenda
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9
Excluding energy prices
10
Atconstant exchange rates
IMPORTANT DISCLAIMER
This document contains "non‐GAAP financial measures". These "non‐GAAP financial measures" might be defined differently from similar financial measures made public by other groups and should not replace GAAP financial measures prepared pursuant to IFRS standards.
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Aurélien Sarrosquy
Tel.+ 33 (0) 1 85 57 86 25
presse.groupe@veolia.com
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Tel. + 33 (0) 1 85 57 84 76 / 84 80
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