SCHP Schwab US TIPs

Contributed revenue stable at €247 million

Reduced contribution from "spot" activities

Impact of lower energy prices

Growth targets confirmed for 2024

Regulatory News:

Séché (Paris:SCHP) reported a satisfactory level of activity in most of its areas and businesses, except for spot pollution control and environmental emergency activities, which were down sharply in France and abroad compared with their high level in the 1er quarter of 2023.

Revenue for the period were also impacted, as expected, by lower energy selling prices compared with Q1 2023, and to a lesser extent by a major maintenance operation.

Séché confirms its growth targets for fiscal 2024.

At March 31, 2024, contributed revenue amounted to €247.2 million, stable compared with Q1 2023 revenue (€247.5 million).

The period benefited from the solid contribution of acquisitions made in 2023 (+€20.0 million).

On a like-for-like basis, revenue fell by 7.4%.

In persistently buoyant markets, this one-off downturn mainly reflects the lower contribution of "spot" decontamination and environmental emergency activities in France and internationally, compared with a high Q1 2023, and in France, the significant drop in energy revenue prices (steam and electricity), as well as the one-off impact of an anticipated maintenance operation on the Salaise incinerator.

In France, revenue came to €171.9 million vs. €183.4 million a year earlier, down -6.3% on March 31, 2023. Adjusted for these factors, like-for-like revenue would have risen slightly by +2.9%, illustrating the strength of Séché’s main markets.

Outside France, revenue came to €75.3 million vs. €64.1 million a year earlier, up 17.5% on a reported basis, but down 10.6% on a like-for-like basis. Excluding the impact of soil remediation spot business, revenue would have risen by -2.0% over the period, mainly due to a lower contribution from the "Europe" zone.

After this Q1 characterized by the relative decline in its "spot" soil remediation activities, Séché is confident that its main markets in France and abroad will continue to perform well over the coming months.

The Group confirms its organic growth target of +5% over 2024, to aim for contributed revenue of around €1,100 million (including the contribution of acquisitions made at the end of 2023, estimated at +€60 million).

Comments on Q1 20024 revenue

At March 31, 2024, Séché Environnement reported consolidated revenue of €262.9 million, compared with €263.9 million a year earlier.

Reported revenue include non-contributed revenue, which break down as follows:

In M€ - At March 31

2023

 2024

Investments IFRIC 12

2,2

0,8

General Tax on Polluting Activities (TGAP)

14,2

14,9

Non-contributed revenue

16,4

15,7

Contributed revenue came to €247.2 million, virtually unchanged from March 31, 2023 (€247.2 million).

Over the period, revenue recorded a scope effect of +€20.0 million, reflecting the robust contribution of the acquisitions made in 2023:

• Séché Assainissement Rhône-Isère -ARI- (consolidated at July 1st, 2023): +€0.3 million
• Furia (consolidated at October 1st, 2023): +€16.8 million
• Essac (consolidated at October 1st, 2023): €1.1 million
• Rent-A-Drum (consolidated at January 1st, 2024): €1.8 million

The negative currency effect came to (€1.9) million vs. (€2.4) million a year earlier, mainly due to the South African Rand's parity against the Euro.

On a like-for-like basis, revenue amounted to €227.2 million, down -7.4% at constant exchange rates compared with March 31, 2023.

Analysis by geographic scope

Consolidated data in € million

At March 31

2023

2024

Gross change

Organic change

Subsidiaries in France

183,4

171,9

-6,3%

-6,4%

of which scope effect

 

0,3

 

 

International subsidiaries

64,1

75,3

+17,5%

-10,6%

of which scope effect

 

19,7

 

 

Contributed revenue

247,5

247,2

-0,1%

-7,4%

At March 31, 2023, revenue at constant exchange rates would have been 245.6, with a negative currency effect of €1.9 million over the period.

Business trends over the period reflect the solidity of the main markets, apart from soil remediation activities (decontamination and environmental emergencies) and energy revenue, which had made a strong contribution to performance in Q1 2023. The period also saw the one-off impact of early maintenance on a treatment facility in France.

• In France, revenue amounted to €171.9 million, down -6.3% on March 31, 2023.

The consolidation of Séché ARI had a perimeter effect of +€0.3 million.

In the context of solid, long-term markets with industry and local authorities, this change mainly reflects the lower contribution of spot activities in environmental remediation and emergency services (-€8.7 million), and to a lesser extent, of energy recovery activities, penalized, as expected, by the decline in energy revenue prices impacting revenue by €3.9 million.

Growth in France was also hampered by maintenance work on the Salaise incinerator, which was anticipated as early as this first quarter (instead of third quarter last year), with an impact of around -€3.8 million.

Adjusted for these items, which penalize the comparison with Q1 2023, organic growth for the scope of consolidation would be +2.9%, driven by the Circular Economy (materials recovery) and Hazard Management businesses.

• Outside France, revenue reached €75.3 million, up +17.5% on a reported basis. The scope of consolidation effect was +€19.7 million, while exchange rates had a negative impact of -€1.9 million.

On a like-for-like basis, revenue was down 10.6% compared with March 31, 2023, significantly penalized by the one-off decline in soil remediation spot business in Peru and South Africa (down €6.2 million).

Excluding these "spot" activities, revenue was down slightly (-2.0% at constant exchange rates), with most subsidiaries reporting positive business trends, except for certain European subsidiaries.

Analysis by activity

Consolidated data in € million

At March 31

2023

2024

Gross change

Organic change

Services

120,7

114,7

-5,0%

-17,1%

of which scope effect

 

16,2

 

 

Circular economy

77,6

84,5

+8,8%

+4,1%

of which scope effect

 

3,7

 

 

Hazard management

49,2

48,0

-2,5%

-2,6%

of which scope effect

-

0,1

 

 

Contributed revenue

247,5

247,2

-0,1%

-7,4%

Services activities were down -5.0% compared with Q1 2023 on a reported basis. They include a scope effect linked to Séché ARI, Furia, Essac and Rent-A-Drum.

On a like-for-like basis, their significant contraction (-17.1%) mainly reflects the lower contribution of "spot" environmental clean-up and emergency activities in France and abroad (down €14.9 million).

Circular Economy activities recorded significant growth on a reported basis (+8.8%). The scope effect includes contributions from Furia and Rent-A-Drum.

On a like-for-like basis, growth was up +4.1%, driven by materials recovery activities (notably chemical purification), which offset the decline in "Energy" revenue in France (-€3.9 million vs. Q1 2023), steam and electricity revenue prices for which were down sharply on the same period last year.

Hazard Management activities were down slightly on a reported basis (-2.5%). The scope effect reflects the contribution of Rent-A-Drum.

At constant scope and exchange rates, and against a backdrop of industrial and public authority markets that remain solid, particularly in France, the 2.6% decline in revenue essentially reflects the impact (€3.8 million) of a maintenance operation brought forward to the first quarter (instead of the third quarter in previous years) on the Salaise incinerator.

Analysis by sector

Consolidated data in € million

At March 31

2023

2024

Gross change

Organic change

Hazardous waste

164,7

166,5

+1,1%

-6,9%

of which scope effect

 

13,8

 

 

Non-hazardous waste

82,8

80,7

-2,6%

-8,6%

of which scope effect

 

6,2

 

 

Contributed revenue

247,5

247,2

-0,1%

-7,4%

In markets that have remained buoyant over the long term, the growth of our sectors, particularly the Hazardous Waste sector, was mainly penalized by the decline in construction site activities and energy revenue. As a result :

• The Hazardous Waste division generated revenue of €166.5 million, up +1.1% on Q1 2023 on a reported basis. It includes a scope effect linked to the contributions of Furia and Essac. On a like-for-like basis, the sector's revenue fell by 6.9%, reflecting the decline in the environmental emergency and remediation business (-14.9 M€), the contraction in steam revenue prices (impacting revenue by -2.2 M€), and the impact of early maintenance at Salaise (-3.8 M€).

• The Non-Hazardous Waste division reported revenue of €80.7 million, down 2.6% on the period on a reported basis. The scope effect reflects the contributions of Séché ARI, Furia and Rent-A-Drum. On a like-for-like basis, the sector's decline was -8.6%, as the impact of lower energy revenue (mainly electricity) in France (-€2.2 million) was not offset by the dynamic performance of other activities in other geographical areas.

Growth prospects confirmed

Séché Environnement is positioned in the sustainable growth markets of the circular economy, ecological transition, and environmental protection.

On the strength of its offering, which meets the main challenges faced by its customers in terms of decarbonization and industrial and environmental risk management, the Group is confident in its ability to achieve better growth in the coming months in its main markets.

Séché assumes a sharp fall in energy revenue prices in 2024 compared with 2023.

After the strong base of Q1 2023, particularly in construction activities in France and internationally, and given the good availability of hazardous waste incineration facilities, particularly in the 2nd half-year compared with last year, growth should gradually accelerate over the course of the year, enabling the Group to achieve its organic growth target of 5% for the 2024 financial year, compared with adjusted revenue for 2023 (€985 million1 ).

Considering the contribution of subsidiaries acquired at the end of 2023 (around €60 million for the year in respect of acquisitions made at the end of 2023), revenue should reach a level close to €1,100 million in 2024.

Conference call

A conference call for financial analysts and investors will be held to comment on business for the Q1 2024, in French only, on April 23, 2024 at 6:00 pm (CET).

To attend the conference, dial +33 (0)1 70 99 53 53 / Code: 514 340 665 #

A presentation is available from 5.45pm on the Séché website: www.groupe-seche.com

A replay of the conference will be available from April 24, 2024 on the Séché website at the same address.

Upcoming events

Annual General Meeting April 26, 2024

Consolidated results to June 30, 2024 September 4, 2024 after market close

About Séché Environnement

Séché Environnement is a leading player in waste management, including the most complex and hazardous waste, and in environmental services, particularly in the event of an environmental emergency. Thanks to its expertise in the creation of circular economy loops, decarbonization and hazard control, the group has been contributing to the ecological transition of industries and territories, as well as to the protection of the living world, for nearly 40 years. A French family-owned industrial group, Séché Environnement deploys the cutting edge technologies developed by its R&D department at the heart of territories, in more than 120 locations in 16 countries, including some fifty industrial sites in France. With more than 6,100 employees, including 2,900 in France, Séché Environnement generated a turnover of €1013,5 million in 2023, 26% of which was generated internationally.

Séché Environnement is listed on Eurolist by Euronext (compartment B). It is eligible for equity savings funds dedicated to investment in SMEs and is included in the CAC Mid&Small, EnterNext Tech 40 and EnterNext PEA-PME 150 indexes. ISIN: FR 0000039139 – Bloomberg: SCHP.FP – Reuters: CCHE.PA

1 Cf. press release of March 11, 2024: contributed revenue net of the price effect on energy revenue and the scope effect of acquisitions made at the end of 2023.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240423956519/en/

SÉCHÉ ENVIRONNEMENT Analyst / Investor Relations Manuel ANDERSEN Head of Investor Relations m.andersen@groupe-seche.com +33 (0)1 53 21 53 60

Media Relations Anna JAEGY Deputy Communications Director a.jaegy@groupe-seche.com +33 (0)1 53 21 53 53