Veolia boosts waste management revenues by 8 per cent

CEO Antoine Frérot: "A very good start"
02.05.2019 − 

Veolia closed the first quarter of 2019 with improved sales and earnings. Growth in the group's waste management activities was particularly strong at almost 8 per cent. In the first three months of 2019, world-wide revenue from these operations amounted to €2.44bn, up from €2.27bn one year before.

The increase was due in nearly equal measure to higher processed volumes, service price increases and takeovers. At the same time, performance had been adversely affected by lower recovered paper prices - especially in Germany and the UK – which had been weaker than in the comparison period, the group announced on Thursday.

Veolia’s waste management activities in France, the United Kingdom, Latin America and Asia and its hazardous waste operations all benefited from service price increases. Veolia attributed the volume effect to higher collection and processing volumes on its home market of France and in its other businesses in Europe. In Germany, waste volumes increased by more than 3 per cent in the first quarter. Acquisitions in Northern Europe and in Colombia had also had a positive effect on waste management revenues.

On a consolidated basis, Veolia increased revenues in the first quarter by about 5 per cent to €6.79bn. While revenues from water activities increased by about 3 per cent to €2.64bn, energy revenues climbed by nearly 6 per cent to €1.70bn. The group reported Ebitda and Ebit of €1.03bn and €484m, respectively, increases of 4 and almost 5 per cent. Quarterly net income jumped by as much as 7 per cent to €209m. Veolia's earnings had also benefited from the increase in waste volumes.

CEO Antoine Frérot said, “We have accomplished a very good start of the year. The group has continued to enjoy a sustained progression of activity, despite an unfavourable weather for our heating business, supported by good commercial momentum in all geographies.” Mr Frérot made special note of the contribution from the group’s “new high value activities”, including hazardous waste treatment and plastics recycling.

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