Suez posts significant growth in waste management revenue

Blue waste container with Suez logo
The amount of waste handled by Suez in the first three
quarters increased by 3 per cent to 24 million tonnes.
05.11.2021 − 

The "Recycling and Recovery” division of French environmental services group Suez has significantly increased its revenues this year, helped by higher volumes and secondary raw material prices. The company recorded revenues of €5.65bn in the first three quarters of 2021 for the division, which pools its global non-hazardous waste management activities. This is almost €340m more than in the same period last year.

Adjusted for changes in the scope of consolidation, in particular the sale of operations in five European countries to Germany’s Prezero, the waste division’s organic growth rate stood at 18 per cent, according to the financial report released in Paris on Wednesday. Compared to the first three quarters of the pre-pandemic year 2019, organic growth stood at 13 per cent.

Suez also reported that the waste management division’s earnings before interest and tax (Ebit) achieved organic growth in the first nine months of the year compared to both 2020 and 2019. The "R&R” business benefited in particular from the "robust price dynamics and high prices for recycled raw materials”. Suez chose not to disclose a breakdown of its absolute Ebit figures by division.

In total, Suez's non-hazardous waste management operations handled 24 million tonnes in the first three quarters of 2021. This represented an increase of 3 per cent year-over-year. Some 10.8 million tonnes of that waste was sent for disposal, up almost 5per cent, while the amount of waste recycled or recovered increased 2 per cent to 13.2 million tonnes. In addition, the group's "Environmental Tech & Solutions” division processed 1.8 million tonnes of hazardous waste in the first three quarters, an increase of 5 per cent over the same period last year.

Growth in group's revenue and Ebit

Suez also reported significantly higher group revenue in the nine-month period ended 30 September. Consolidated revenue was up €440m or 3 per cent year-over-year to €13.0bn. At constant scope and currency, the growth rate was close to 10 per cent compared to the first nine months of 2020 and 6 per cent compared to the same period in 2019, the company reported. Suez's Ebit reached €1.25bn, compared to €413m last year and €1bn in 2019.

"Suez’s successful transformation is clearly evident in the robust growth and significant strengthening of the group’s operating profitability", the group's CEO Bertrand Camus commented. "Our debt is under control thanks to a strong cash generation. These results have given us even more confidence in achieving our 2021 targets." The group expects full-year revenue to reach more than €16bn, and Ebit to exceed €1.5bn.

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