Revenues from Waste Rise Despite Strong Headwinds : Veolia Posts Strong Results – Revenue Up to Almost to €25bn
French Environmental Services giant, Veolia Environment, has reported a revenue increased of 4.5% (+1.4% at Constant Exchange Rates) to €24.965 billion in 2015.
Antoine Frérot, Veolia’s chairman & CEO said that in the face of a difficult economic environment, the strong results vindicate the company’s strategy.
“The Group’s margins substantially improved in 2015, current net income increased 74% and net free cash flow set a new record of €856 million,” he said.
In France the company said that its revenue in the Waste business improved by 1%, essentially due to commercial successes which offset the decline in landfill volumes.
Revenue in the Europe excluding France segment was down 1.2% at constant consolidation scope and exchange rates, but there again, an improvement in the Y-Y trend in Q4 was observed, with slight revenue growth (+0.2%).
In Central Europe revenue increased 1.8% at constant consolidation scope and exchange rates, while revenue in the UK declined by 3.1% at constant consolidation scope and exchange rates due to the impact of lower PFI construction revenue. However, when construction activities are excluded, revenue in the UK was stable.
In Germany, revenue fell 5.1% at constant consolidation scope and exchange rates due to the decline in waste volumes and the decline energy prices.
Overall revenue in the Waste business improved by 0.5% at constant scope and exchange rates compared with pro forma figures for the year ended December 31, 2014. Activity was marked by the solid resilience of operations in a context of continued weak volumes:
The company attributed the increase in waste revenue to:
Solid commercial momentum, particularly in France, Great Britain and Latin America
Ongoing construction of hazardous waste incinerators in China
Growth in hazardous waste despite the fall in recycled oil prices in line with declining crude oil prices.
“This excellent performance allows me to approach 2016 with confidence, despite an economic context that remains difficult,” commented Frérot. “The Group’s prior strategy which entirely focused on results improvement now allows the Group to increase investments and therefore to grow revenue.”
“At the end of 2015, I presented our strategic growth plan for the 2016-2018 period. With a focus on profitable and sustainable growth in both our traditional markets and new industrial markets, the plan also reflects our continued optimization efforts,” he continued.
“As a result, we target revenue of at least €27 billion and current net income of at least €800 million in 2018. The 2016 fiscal year should be in line with this trajectory,” Frérot concluded.
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