(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
Regulatory News:
Veolia Environnement (Paris:VIE):
Estelle Brachlianoff, CEO of the Group, commented:
“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 Europe.
Our new BeyondPFAS offering, which will enable us to target one
billion euros of sales by 2030 in the fight against
micropollutants, particularly PFAS, is a perfect illustration of
this. It is based on our unique ability to combine all our
expertise across the entire value chain, particularly in pollution
treatment.
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 September 30, with a strong growth in Q3 of
+6.7%(1)
- 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 in North 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
Key Figures at 30 September 2024
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 September 30, 2024
Group consolidated revenues amounted to 32,543 million euros at
September 30, 2024, compared to 33,161 million euros at September
30, 2023. They increased by +1.7% on a like-for-like basis, and by
+5.1% excluding the impact of energy prices, which mainly affected
Europe excluding France.
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 on February 29,
2024, of RGS (North America) on August 1st, 2024 and of Lydec on
September 4th, 2024, partly offset by the acquisition of Hofmann
(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 and Eastern 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 and Eastern 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 September 30 rose sharply in the Water Technologies
segment, grew steadily in the Rest of the World segment, and grew
moderately in France and Special Waste Europe, whereas they fell in
the Europe excluding France segment due to lower energy prices than
in 2023.
Revenues in France and Special Waste Europe amounted to
6,783 million euros and showed organic growth of +3.0% compared to
September 30, 2023.
- Water France sales of 2,310 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 to 2,222 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 Europe excluding France reached 13,305
million euros at September 30, 2024, an organic variation of -4.4%,
due to lower energy prices than in 2023. Excluding the effect of
energy prices, revenues rose by +3.7%.
- In Central and Eastern Europe, sales stood at 7,467
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 in Germany benefited from good C&I volumes and from
higher recycled cardboard prices.
- In Northern Europe, revenues of 3,172 million
euros rose by +4.1% on a like-for-like basis. This increase was
mainly attributable to sales in the United 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 of 664 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 8,853 million
euros, an organic growth of +5.6%, up in all geographies, excluding
Asia.
- Revenue stood at 1,390 million euros in Latin America,
up +22.8% on a like-for-like basis. This was mostly driven by good
waste volumes, notably in Brazil and Colombia, the effect of tariff
reviews on water activities in Chile, and the impact of
hyperinflation in Argentina (offset by the devaluation of the
Argentine peso).
- In Africa Middle-East, revenues totaled 1,653 million
euros, up +3.7% on a like-for-like basis, mainly driven by the
growth of energy services in the Middle East and the increase in
activity in Morocco.
- In North America, revenues reached 2,515 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 to 1,739 million euros, down
-2.0% on a like-for-like basis, mainly due to lower activity at
hazardous waste treatment plants in China and India. These effects
were partially offset by strong commercial momentum in energy
efficiency in Hong Kong and water in Japan.
- 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 3,598
million euros, up +13.5% on a like-for-like basis, driven by WTS
growth in the Engineering Systems and Chemical Solutions
businesses, as well as by VWT growth in its Project activities.
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 and Eastern Europe (+3.2%) and in the
United States (+3.1%), offsetting falls in France (-0.5%), due to
heavy rainfall, in Spain (-0.6%) due to drought-related
restrictions, and in Chile (-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.
- 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 the United Kingdom and Australia. 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 outside Asia.
- 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 in Belgium, the Middle
East and Hong Kong. Excluding energy prices and weather impact,
Energy sales were up +2.3%.
Strong EBITDA growth, to €4,936m compared with €4,793m at
September 30, 2023, i.e. +5.6% organic growth
The currency impact on EBITDA amounted to -121 million
euros (-2.5%). This mainly reflects the depreciation of the
Argentinian, Chilean and Czech currencies, partially offset by a
rise in the Polish currency7.
The perimeter impact of -4 million euros (-0.1 %) mainly
includes the impact of the disposals of SADE on February 29, 2024,
of RGS (North America) on August 1st, 2024 and of Lydec on
September 4th, 2024, partly offset by the acquisition of Hofmann
(Germany) in the first quarter 2024.
External factors negatively impacted 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 and Eastern Europe, due to a milder winter than in
2023.
____________________ 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 of 350 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 excluding France (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 additional 144 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 to 411 million euros, leading to an increase in the
cumulative target at end 2024 to above 430 million euros.
Current EBIT growth of +6.4% at €2,601m, at constant scope
and forex
The increase in current EBIT compared with September 30, 2023 at
constant scope and forex amounted to +162 million euros (+6.4%),
and was mainly due to:
- 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 (notably
Uzbekistan);
- 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 -80 million
euros and mainly reflected the change in Argentinian (-53 million
euros) and Chilean (-21 million euros) currencies.
____________________ 8 Excluding Suez PPA
Well controlled net financial debt
Net free cash-flow before financial investments and
dividends stood at -147 million euros at September 30, 2024,
compared with +357 million euros at September 30, 2023.
The change in net free cash-flow compared to September 30, 2023
is explained by:
- 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 with September 30, 2023 (+4.5% at constant
forex). This includes in particular the on-going decarbonation
projects in Central and Eastern 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 to
September 30, 2023, impacted by advances received in 2023 in
connection with Water Technologies projects and projects in
Germany, 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 with September 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 18,892 million euros at
September 30, 2024, compared with 17,903 million euros at December
31, 2023. Compared with December 31, 2023, the change in net
financial debt is mainly due to the following:
- 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 of Groupe 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 +15 million
euros at September 30, 2024.
2024 Guidance fully confirmed
- Solid organic growth of revenue(1)
(2)
- Efficiency gains above €350m complemented
by synergies for a cumulated amount of now more than €430m end
2024, in line with the €500m cumulated objective
- Organic growth(1) of EBITDA between +5%
and +6%
- Current net income Group share above
€1.5bn(3)
- Leverage ratio expected below 3x(3)
- Dividend growth in line with Current EPS
growth
(1) at constant scope and forex / (2)
excluding energy prices / (3) excluding Suez PPA
GreenUp 2024-2027 targets fully confirmed
- Solid revenue
growth9
- €350m savings per
year
- Over €8bn of EBITDA in
2027
- ~ 10% annual growth10 in
current net income over 2023-2027
- Leverage ratio ≤ 3x
- Dividend growth in line
with current EPS
- €4bn of growth investments, of
which €2bn are prioritized on 3 growth boosters
- Decarbonization: 18m tons of
CO2 erased in 2027 (scope 4) and emission reduction trajectory
compatible with 1.5°C warming (scope 1&2)
- Regeneration: 1.5 bn m3 of
fresh water saved in 2027
- Depollution: 10m tons of
hazardous waste and pollutants treated in 2027
Agenda
- February 27, 2025: 2024 full-year results
publication
ABOUT VEOLIA
Veolia group aims to become the benchmark company for ecological
transformation. Present on five continents with nearly 213,000
employees, the Group designs and deploys useful, practical
solutions for the management of water, waste and energy that are
contributing to a radical turnaround of the current situation.
Through its three complementary activities, Veolia helps to develop
access to resources, to preserve available resources and to renew
them. In 2023, the Veolia group provided 113 million inhabitants
with drinking water and 103 million with sanitation, produced 42
million megawatt hours of energy and recovered 63 million tonnes of
waste. Veolia Environnement (Paris Euronext: VIE) achieved
consolidated revenue of 45.3 billion euros in 2023.
www.veolia.com
____________________ 9 Excluding energy prices 10 At constant
exchange rates
IMPORTANT DISCLAIMER
Veolia Environnement is a corporation listed on the Euronext
Paris. This press release contains “forward-looking statements''
within the meaning of the provisions of the U.S. Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
not guarantees of future performance. Actual results may differ
materially from the forward-looking statements as a result of a
number of risks and uncertainties, many of which are outside our
control, including but not limited to: the risk of suffering
reduced profits or losses as a result of intense competition, the
risk that changes in energy prices and taxes may reduce Veolia
Environnement’s profits, the risk that governmental authorities
could terminate or modify some of Veolia Environnement’s contracts,
the risk that acquisitions may not provide the benefits that Veolia
Environnement hopes to achieve, the risks related to customary
provisions of divestiture transactions, the risk that Veolia
Environnement’s compliance with environmental laws may become more
costly in the future, the risk that currency exchange rate
fluctuations may negatively affect Veolia Environnement’s financial
results and the price of its shares, the risk that Veolia
Environnement may incur environmental liability in connection with
its past, present and future operations, as well as the other risks
described in the documents Veolia Environnement has filed with the
Autorité des Marchés Financiers (French securities regulator).
Veolia Environnement does not undertake, nor does it have, any
obligation to provide updates or to revise any forward-looking
statements. Investors and security holders may obtain from Veolia
Environnement a free copy of documents it filed (www.veolia.com)
with the Autorités des marchés financiers.
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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version on businesswire.com: https://www.businesswire.com/news/home/20241106932854/en/
MEDIA RELATIONS Laurent Obadia - Evgeniya Mazalova
Charline Bouchereau - Anna Beaubatie Aurélien
Sarrosquy Tel.+ 33 (0) 1 85 57 86 25
presse.groupe@veolia.com
INVESTOR RELATIONS Selma Bekhechi - Ariane de
Lamaze Tel. + 33 (0) 1 85 57 84 76 / 84 80
investor-relations@veolia.com
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