STRONG GROWTH IN HALF-YEAR RESULTS,
REFLECTING THE SOLIDITY OF VEOLIA’S VALUE CREATION MODEL
AND THE GOOD START OF ITS GREENUP STRATEGIC PROGRAM
- Solid revenue growth of +4.4%(1) driven by Booster activities up +6.9%(1), while Stronghold activities are up +3.4%(1)
- Robust operational performance with a strong EBITDA increase of +5.7%(2)), supported by revenue growth, operational efficiency as well as synergies ahead of annual target. Current net income up +15.2%(3) to €731m
- Continued dynamic capital allocation policy contributing to value creation while preserving a solid balance sheet, with €1bn+ of non-strategic asset divestments signed in the first half, and several targeted acquisitions in priority activities
- Objectives for 2024 and GreenUp 2024-2027 fully confirmed
- Veolia, first company to obtain double validationby SBTi and Moody's for its climate trajectory, compatible with the 1.5°C ambition.
Revenues of €22,141m with solid growth of +4.4%(1) :
- Strong growth in Water(+6,4%(2)) and Waste (+6,4%(2))
- Revenue increase in Energy (+1,4%(2)(4)) with sustained high levels of profitability
- After taking into account the effect of lower energy prices, total Group revenues are slightly up +0,4%(2)
EBITDA of €3,266m, a strong organic growth of +5.7%(2) within the guidance range of +5% to +6%(2) :
- €194m in efficiency gains, for an annual target of €350m
- €71m in synergies, ahead of annual target
Current EBIT up +6.6%(2)), to €1,730m
Current Net Income - Group Share of €731m up +15.2%(3), on track with the annual target above €1.5bn, and Net Income - Group Share up +24.6%
Net financial debt well under control, with a leverage ratio expected below 3x at end 2024
Objectives for 2024 and GreenUp 2024-27 fully confirmed
Estelle Brachlianoff, CEO of the Group, commented:
“At mid-year, Veolia posted a very solid performance, perfectly aligned with the priorities of the GreenUp Strategic Program that we have recently launched. EBITDA was up +5.7%1 and current net income up +15.2%2, in line with our expectations. These excellent results reflect our commercial dynamism and operational excellence, as well as the vitality of demand, which translates in the sound growth of our Water and Waste activities. The unique combination of water / energy / waste activities which enables us to offer efficient and innovative solutions to our customers has once again been key to our commercial wins, as illustrated by the examples of Saint-Fons in France or New-Orleans in the United States, two major wastewater treatment plants contracts where our know-how in energy was key.
During this first-half, we have also pursued the transformation of our portfolio of activities according to our strategic plan, by divesting non-strategic assets for a total amount of more than 1 billion euros, while simultaneously reinvesting in new acquisitions that create value in our priority activities.
We expect these positive trends to continue in the second-half, which enables us to fully confirm all our targets for the year.”
🔎 2024 Guidance fully confirmed
In view of the excellent results achieved in the first half 2024, guidance for 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 €1.5bn(3)
- Leverage ratio expected below 3x(3)
- Dividend growth in line with Current EPS growth
🔎 GreenUp 2024-2027 targets fully confirmed
- Solid revenue growth7
- €350m savings per year
- Over €8bnof EBITDA in 2027
- ~ 10% annual growth8 in current net income over 2023-2027
- Leverage ratio ≤ 3x
- Dividend growth in line with current EPS
- €4bn of growth investments, of which €2bn 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
- October 17: Deep dive Water Technologies and Innovation in Hungary
- November 7: 2024 third quarter results publication
ABOUT VEOLIA
Veolia group aims to become the benchmark company for ecological transformation. Present on five continents with nearly 213,000 employees, the Group designs and deploys useful, practical solutions for the management of water, waste and energy that are contributing to a radical turnaround of the current situation. Through its three complementary activities, Veolia helps to develop access to resources, to preserve available resources and to renew them. In 2023, the Veolia group provided 113 million inhabitants with drinking water and 103 million with sanitation, produced 42 million megawatt hours of energy and recovered 63 million tonnes of waste. Veolia Environnement (Paris Euronext: VIE) achieved consolidated revenue of 45.3 billion euros in 2023.
IMPORTANT DISCLAIMER
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.
Contacts
MEDIA RELATION
Laurent Obadia - Evgeniya Mazalova
Anna Beaubatie - Aurélien Sarrosquy
Tél.+ 33 (0) 1 85 57 86 25
[email protected]
INVESTORS RELATIONS
Selma Bekhechi - Ariane de Lamaze
Tél. + 33 (0)1 85 57 84 76 / 84 80
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