Veolia Environnement SA

05/14/2024 | Press release | Distributed by Public on 05/13/2024 23:45

KEY FIGURES AT 31 MARCH 2024

VERY STRONG START OF THE YEAR ENABLES TO FULLY
CONFIRM OUR 2024 FULL YEAR OBJECTIVES

  • Solid underlying revenue growth and strong commercial momentum in both our activities identified as boosters in our Greenup Strategic plan (Water Technologies, Hazardous Waste, Bioenergies and Energy Efficiency) and in our strongholds businesses.
  • Confirmation of the strength of our value-creation model, with EBITDA up sharply by +5.7% organic, driven by business growth, operational efficiency and synergies ahead of annual target

Revenueof €11 556 M with solid growth of +3.9%(1) excluding energy prices

  • Strong growth in Water and in Waste
  • Energy stable excluding the impact of energy prices
  • Overall, and after taking into account the effect of lower energy prices, revenue was down slightly by 1.7%(1), with no impact on results.

EBITDAof €1 624 M, a strong organic growth of +5.7 %(1), within the guidance range of +5 % to +6 %(1) :

  • € 88 M in efficiency gains,in line with our annual target of €350 M
  • €42 M in synergies, ahead of annual target

Current EBITsharply up by +11.1%(1), to €843 M

Objectives 2024fully confirmed

Estelle Brachlianoff, CEO of the Group, commented:

"We started 2024 with strong demand for our services, which translated into substantial revenue growth of 3.9%. This demand was particularly strong in our booster businesses, notably water technologies, where sales grew by 15% with orders up by 50%. Our core strongholds water and waste businesses also recorded solid organic growth.

We have continued to demonstrate our technological leadership and innovative approach to providing our customers with the water service of the future, notably through the renewal of the flagship contract with Syndicat des Eaux de l'Île-de-France, worth a total of €4 billion, and to finding solutions that now enable us to be ready to combat emerging pollutants, such as PFAS, in drinking water in the United States and France.

This commercial momentum, combined with strict financial discipline, has enabled us to increase our EBITDA by 5.7% and our current EBIT by 11.1%. These are very good results, in line with the strategic priorities of the GreenUP plan, enabling us to fully confirm our objectives for the full year."

(1) At constant scope and forex


2024 Guidancefully confirmed

In view of the excellent results achieved in Q1 2024, guidance 2024 is fully confirmed:

  • Solid organic growth of revenue(1) (2)
  • Efficiency gains above €350m complemented by additional synergies for a cumulated amount of more than €400m end 2024, in line with the €500m cumulated objective
  • Organic growth(1) of EBITDA between +5% and +6%
  • Current net income Group share above €1.5 bn(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 organic revenue growth5
  • €350M savings per year
  • Over €8bn of EBITDA in 2027
  • ~ 10% annual growth in current net income over 2023-20276
  • Leverage ratio ≤ 3x
  • Dividend growth in line with current EPS
  • €4 bn of growth investments, of which €2 bn are prioritized on 3 growth boosters
  • Decarbonization: 18m tons of CO2 erased in 2027 (scope 4) & 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

17 october: Deep dive Water Technologies and Innovation

5Excluding energy prices
6 At constant exchange rates

ABOUT VEOLIA

Veolia's ambition is to become the benchmark company for ecological transformation. With nearly 218,000 employees on five continents, the Group designs and deploys useful, practical solutions for managing water, waste and energy that help to radically change the world. Through its three complementary activities, Veolia contributes to developing access to resources, preserving available resources and renewing them. In 2023, the Veolia group served 113 million people with drinking water and 103 million with wastewater services, produced 42 terawatt-hours of energy and recovered 63 million metric tons of waste. Veolia Environnement (Paris Euronext: VIE) generated consolidated sales of €45.3 billion in 2023.

IMPORTANT DISCLAIMER

As the changes in the health crisis are difficult to estimate, we draw your attention to the "forward-looking statements" that may appear in this press release and relating to the consequences of this crisis which may affect the future performance of the Company. 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.