Veolia Setting: One other half 12 months of robust outcomes development regardless of the macroeconomic context


Estelle Brachlianoff, CEO of the Group, commented : “I’m very happy to announce one other set of wonderful outcomes for Veolia, with robust development and a brand new all-time excessive, regardless of the unfavorable macroeconomic context. This superb efficiency, with income up 14.2% and present web revenue up 19%, displays our business dynamism and our operational excellence, and confirms our low sensitivity to financial cycles. These outcomes display the relevance of our value-creation mannequin and of our strategic positioning, primarily based on the complementary nature of our three companies (Water, Waste and Vitality), our diversified world footprint, with 40% of our actions outdoors Europe, and our management place in strategic markets. Additionally they replicate the Group’s new profile and the success of the merger with Suez. In just below 18 months, we have now already generated EUR230 million in synergies and are forward of schedule. 2023 has due to this fact acquired off to an ideal begin for Veolia, and the second half of the 12 months also needs to observe a good pattern, which implies that I can affirm our aims for the 12 months as a complete and now goal for the highest finish of the EBITDA development vary. Our best positioning as a frontrunner in ecological transformation, a development market as illustrated, for instance, by the numerous contracts we have now received for the reason that starting of the 12 months to assist our purchasers address the shortage of water sources, places Veolia on a sustainable development trajectory.”


Detailed outcomes at 30 June 2023

-- Revenues for the primary half of 2023 amounted to EUR22,755 million, in contrast with EUR20,196 million for the primary half of 2022, up 14.2% on a like-for-like foundation, and up 5.2% excluding the affect of vitality costs.

Income development is damaged down by affect as follows:


The forex impact was a damaging EUR293 million (-1.4% of income), primarily reflecting the depreciation of the Argentinean, British, Australian and Chinese language currencies, partially offset by the appreciation of the US greenback, the Czech koruna and the Chilean peso.


The scope impact was virtually impartial, at -EUR20 million (-0.1% of revenues), and was as a result of mixture of the anti-trust disposals linked to the acquisition of Suez and the full-year consolidation of Suez belongings (17 extra days)


The Commerce/Volumes/Works impact amounted to +564 million euros (+2.8% of income) because of the nice efficiency of the vitality enterprise and development within the Water Know-how enterprise.


The local weather impact was barely damaging, at -54 million euros (-0.3% of income), reflecting the delicate winter in Central and Japanese Europe.


The affect of vitality costs, web of recyclate costs, amounted to EUR1,584 million (7.8% on revenues), reflecting the sharp rise in warmth and electrical energy tariffs for EUR1,821 million notably in Central and Japanese Europe, partially offset by the impact of the autumn in recycled supplies costs (-EUR237 million).


The worth impact in Water and Waste was a constructive EUR779 million (+3.9% on income). This displays worth indexation mechanisms and will increase within the worth of the Group’s providers of +4.4% on common in Water and +4.9% in Waste.

-- Income at 30 June 2023 progressed throughout all working segments in comparison with 30 June 2022.

– Income in France and Particular Waste Europe amounted to 4,795 million euros, +1.5% natural development in comparison with June 30, 2022:

-- Water France income elevated by +0.8 % This was primarily because of tariff will increase, which compensated for the return of the Lyon contract to public service administration. Billed volumes had been down by 2.8% because of typically unfavorable climate situations within the second quarter. -- Waste France income decreased by -0.6 % primarily on account of decrease costs for recycled supplies, partially offset by increased costs for providers and vitality bought, business selectivity and decrease volumes. -- The Hazardous Waste enterprise in Europe grew barely, with costs for waste therapy providers persevering with to pattern upwards, offset by a fall within the worth of recycled oils. -- SADE grew by +4.0%, because of continued robust gross sales exercise.

– Income in Europe excluding France rose to €9,883 million as at June 30, 2023, a rise of 23.2% organically, primarily because of increased vitality costs in Central and Japanese Europe.

-- In Central and Japanese Europe, income rose by a powerful +41.5% to EUR6,130 million. Enterprise within the area was pushed by the favorable affect of worth rises in warmth and electrical energy. The Vitality local weather impact was barely unfavorable (-30 million euros). -- In Northern Europe, income rose by 5.2% to EUR1,989 million. In the UK, gross sales rose by 5.9% on a like-for-like foundation, thanks specifically to the nice efficiency of municipal waste assortment actions, increased promoting costs for electrical energy generated by incinerators, and the start-up of contracts linked to the UK authorities's decarbonisation plan. Natural development in Belux was +4.7%. -- In Italy, revenues had been down 11.4% at EUR500 million, as a result of fall in vitality costs, which had no affect on profitability. -- In Spain and Portugal, income was up 10.8% at EUR1,263 million, each in Vitality and Water, with water volumes up 1.3% and tariff will increase.

Gross sales in the remainder of the world had been €5,883 million, a rise of 12.1% on a like-for-like foundation..

-- Income in Latin America rose by 28.1% to EUR955 million, because of robust tariff indexation, notably in Argentina, the place income greater than doubled, and to robust Water in Chile. -- In Africa Center East, enterprise grew by +15.8% to EUR1,029 million because of new Water contracts and development in vitality providers within the Center East. -- In North America, income totalled EUR1,631 million, up +9% because of continued buoyant exercise, a really favorable combine impact and continued worth rises for hazardous waste providers, in addition to the impact of upper tariffs and volumes will increase (+5.2%) in Water. -- Revenues in Asia returned to a wholesome development path, rising by +7.0% to EUR1,280 million. Gross sales in China rose by 2.8%, whereas South Korea, Japan, Taiwan and Hong Kong continued to get pleasure from sustained development. -- Within the Pacific area, income rose by 7.5% to EUR988 million, because of a very good business efficiency within the Australian waste enterprise and the commercial upkeep enterprise..

Water Applied sciences posted a powerful development of 9.0% to €2,183 million. Veolia Water Applied sciences grew by 4.6% to €731m because of providers and applied sciences, and WTS by 11.4% to €1,452m, primarily in engineering techniques and chemical substances gross sales.

-- Income development by enterprise. The 14.2% development in income was pushed primarily by robust development in Vitality, as a result of sharp rise within the worth of vitality bought. Excluding the affect of vitality costs, natural development was 5.2%. -- Water income rose by +8.4% to EUR8,834 million, with volumes up +4.3% (+0.6% in Central and Japanese Europe, -2.8% in France, +1.3% in Spain, +1.4% in Chile and +5.2% in the US), the total impact of tariff indexation in all geographies (+4.4% total) and good development within the Water Applied sciences enterprise. -- Income from the Waste enterprise confirmed the identical traits as within the first quarter. Like-for-like gross sales rose by 3.3% to EUR7,344 million. The amount impact was -0.2%, greater than offset by the commerce impact (+0.7%), and the impact of worth will increase was +4.9%, partly offset by the autumn in costs for recyclates (paper, cardboard and plastics), which had a damaging affect of -3.0% on income development. -- Vitality revenues totalled EUR6,578 million, a really robust improve (+41.3% on a like-for-like foundation), primarily because of increased costs for warmth and electrical energy bought, reflecting the very sharp rise in the price of bought vitality (fuel, coal, biomass). The climate impact was barely unfavorable at -0.7%, because of a gentle winter. -- Sturdy development in EBITDA, to EUR3,162m from EUR2,953m at 30 June 2022, representing like-for-like development of 8.2%. -- Change fee fluctuations had a damaging affect of EUR21m, and scope a damaging affect of EUR12m. -- The robust development in EBITDA breaks down right into a quantity impact of +EUR56 million (+1.9%), a barely damaging local weather impact of -EUR22 million (-0.8%), an vitality and recyclates worth impact of +EUR52 million (+1.8%), the affect of effectivity good points web of contract renegotiations and of the gradual passing on of price will increase into costs and indexes of +73 million euros (+2.5%) and the impact of synergies of +84 million euros (+2.8%), forward of the annual goal. -- Very robust development in recurring EBIT(1) , up 13.3% on a like-for-like foundation, to EUR1,674 million from EUR1,515 million at 30 June 2022. Modifications in trade charges had a damaging affect of EUR11 million on present EBIT. The rise in present EBIT on a like-for-like foundation (+EUR202m) breaks down as follows: -- A pointy rise in EBITDA (up EUR243 million on a like-for-like foundation). -- Depreciation and amortization steady at EUR1,377 million, in contrast with EUR1,386 million (excluding repayments of working monetary belongings). -- A major drop of EUR46 million (and -EUR57 million at fixed scope and foreign exchange) within the constructive steadiness of capital good points
on industrial disposals web of impairment, from EUR139 million within the first half of 2022 to EUR93 million within the first half of 2023. Within the first half of 2022, the Group recorded capital good points on the disposal of commercial belongings in reference to the acquisition of Suez (antitrust divestitures). -- Contribution from joint ventures and associates of EUR53 million, up EUR5 million at fixed scope and foreign exchange -- Internet present revenue Group share (earlier than PPA of -16 million euros) reached 662 million euros at 30 June 2023, in contrast with 550 million euros at 30 June 2022 (+18.7% at fixed trade charges). -- The price of web monetary debt was EUR312m. It fell by EUR8m because of lively administration of financing prices. The Group's borrowing fee was steady at 3.67%. -- Different monetary revenue and bills (together with good points and losses on disposals of economic belongings) amounted to EUR123m, in contrast with EUR207m at 30 June 2022, an enchancment of EUR84m as a result of decrease revaluation of Chilean inflation-linked debt and the non-recurrence of damaging one off results linked to the Suez transaction. -- Tax totalled EUR332m, reflecting the rise in revenue earlier than tax on abnormal actions. The tax fee was 28%, in contrast with 28.6% within the first half of 2022. -- Minority pursuits amounted to EUR245m, in contrast with EUR172m at 30 June 2022, primarily because of increased earnings in Chile and Central Europe. -- Reported web revenue Group share got here to EUR523 million, in contrast with EUR236 million at 30 June 2022, a rise of 117.9% at fixed foreign exchange. -- The very sharp enchancment in reported web revenue is as a result of robust development in present web revenue and the sharp discount in prices regarding the acquisition and integration of Suez, which amounted to EUR55m in contrast with EUR154m. -- Internet monetary debt underneath management (1), at EUR19,233 million at 30 June 2023, in contrast with EUR18,138 million at 31 December 2022. -- In contrast with 31 December 2022, the change in web monetary debt is especially as a result of following elements: - Sturdy enchancment in web free money move for the 12 months to -78 million euros in contrast with -304 million euros within the first half of 2022, with gross capital expenditure of 1,820 million euros in contrast with 1,624 million within the first half of 2022(2) as a result of improve in decarbonisation investments in Central and Japanese Europe and investments in hazardous waste, and an enchancment(2) in Working Capital Requirement of 35 million euros regardless of the robust improve in income. - Internet monetary debt was additionally impacted by an unfavorable trade fee impact and truthful worth changes of EUR189m at 30 June 2023. (1) Excluding PPA Suez (2) Together with the 17 days in 2022


Given the superb first half of the 12 months, our targets for 2023 are totally confirmed and natural EBITDA development is now anticipated to be on the increased finish of the vary +5% to +7%.

-- Goals 2023 (1)(2) -- Stable natural development of income -- Effectivity good points above EUR350m complemented by extra synergies for a cumulated quantity of EUR280m end-2023, according to the EUR500m cumulated goal. -- Natural development of EBITDA between +5% and +7% -- Present web revenue group share round EUR1.3bn(2) -- Affirmation of the EPS accretion(3) of round 40% in 2024 -- Leverage ratio round 3x -- Dividend development according to present EPS development (1) At fixed foreign exchange and with out extension of the battle past the Ukrainian territory and with out vital change within the vitality provide situations in Europe (2) Earlier than Suez PPA (3) Present web revenue per share after hybrid prices and earlier than PPA

ESG, is on the coronary heart of Veolia’s multifaceted efficiency


New Multifaceted efficiency progress Report 2023:


About Veolia


Veolia Group goals to grow to be the benchmark firm for ecological transformation. Current on 5 continents with practically 220,000 workers, the Group designs and deploys helpful, sensible options for the administration of water, waste and vitality which might be contributing to a radical turnaround of the present state of affairs. By means of its three complementary actions, Veolia helps to develop entry to sources, to protect out there sources and to resume them. In 2022, the Veolia group supplied 111 million inhabitants with ingesting water and 97 million with sanitation, produced 44 terawatt hours of vitality and recovered 61 million tonnes of waste. Veolia Environnement (Paris Euronext: VIE) achieved consolidated income of 42 885 million euros in 2022.


Essential disclaimer


Because the adjustments within the well being disaster are troublesome to estimate, we draw your consideration to the “forward-looking statements” that will seem on this press launch and regarding the results of this disaster which can have an effect on the long run efficiency of the Firm.


Veolia Environnement is an organization listed on the Euronext Paris. This press launch comprises “forward-looking statements” inside the which means of the provisions of the U.S. Non-public Securities Litigation Reform Act of 1995. Such forward-looking statements should not ensures of future efficiency. Precise outcomes might differ materially from the forward-looking statements on account of quite a few dangers and uncertainties, a lot of that are outdoors our management, together with however not restricted to: the danger of struggling diminished earnings or losses on account of intense competitors, the danger that adjustments in vitality costs and taxes might scale back Veolia Environnement’s earnings, the danger that governmental authorities may terminate or modify a few of Veolia Environnement’s contracts, the danger that acquisitions might not present the advantages that Veolia Environnement hopes to realize, the dangers associated to customary provisions of divestiture transactions, the danger that Veolia Environnement’s compliance with environmental legal guidelines might grow to be extra expensive sooner or later, the danger that forex trade fee fluctuations might negatively have an effect on Veolia Environnement’s monetary outcomes and the value of its shares, the danger that Veolia Environnement might incur environmental legal responsibility in reference to its previous, current and future operations, in addition to the opposite dangers described within the paperwork Veolia Environnement has filed with the Autorité des Marchés Financiers (French securities regulator). Veolia Environnement doesn’t undertake, nor does it have, any obligation to supply updates or to revise any forward-looking statements. Buyers and safety holders might get hold of from Veolia Environnement a free copy of paperwork it filed ( with the Autorités des marchés financiers.


This doc comprises “non–GAAP monetary measures”. These “non–GAAP monetary measures” may be outlined in a different way from related monetary measures made public by different teams and mustn’t change GAAP monetary measures ready pursuant to IFRS requirements.


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CONTACT: Media Relations

Laurent Obadiah

Evgenia Mazalova

Tel: + 33 (0) 1 85 57 86 25

investor relations

Ronald Waslick – Ariane De Lamaze

That is superb. : + 33 (0) 1 85 57 84 76/84 80

SOURCE: Veolia Environnement Copyright Enterprise Wire 2023

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