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Veolia records 14 per cent decline in Q2 revenues from waste operations

30.07.2020 − 

The effects of the coronavirus crisis are clearly visible in the latest earnings figures released by the French environmental services concern Veolia. Revenues from its waste management activities came in at around €2.2bn in the second quarter of 2020, down 14 per cent year-over-year, according the first half earnings report published on Thursday. In the first quarter, the business unit had still been able to achieve revenue growth of almost 2 per cent and sales of €2.5bn.

Since June, Veolia had observed "a very strong rebound" of both its revenues and results, after first signs of a recovery in May, said CEO Antoine Frérot in comments on the impact of the coronavirus crisis on the group as a whole. In the meantime, the utilisation rates at all of Veolia's facilities had recovered to their nominal level, he said.

On 1 April, Veolia had announced a €200m cost reduction programme aimed at offsetting the financial impact of the crisis. The objective for 2020 has now been raised to €250m. According to Mr Frérot, the concern now hopes to bring its operational performance back to 2019 levels by the fourth quarter of this year. These cuts come in addition to the €250m in expenses which Veolia was already planning to eliminate this year before the Covid-19 pandemic hit.

 In the first half 2020, Veolia’s consolidated revenues reached €12.4bn, down 7 per cent against the prior-year figure. Earnings before interest, tax, depreciation and amortisation (Ebitda) declined by 20 per cent to €1.65bn. Veolia reported a net loss after minority interests of €138m. In 2019, it had posted net earnings of €331m for the first half.

The full report on Veolia's first-half financials and outlook will appear in the next print and e-paper issue of EUWID Recycling & Waste Management (16/2020) out on 5 August. 

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