SUSTAINED GROWTH DYNAMIC AND SOLID OPERATIONAL PERFORMANCE CONFIRMING THE GOOD START OF GREENUP STRATEGIC PROGRAM
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OBJECTIVES FULLY CONFIRMED
- Solid revenue growth of +5.1%(1) driven by Booster activities up +6.9%(1)
- Solid operational performance with a strong EBITDA increase of +5.6%(2), supported by revenue growth, operational efficiency as well as synergies ahead of annual target already achieved at end of September
- Annual cumulative synergies target raised to above €430m at end 2024, over a total plan of €500m by 2025
- Continued dynamic capital allocation policy with €1bn+ of non-strategic asset divestments closed since beginning of the year
- Objectives for 2024 and GreenUp 2024-2027 fully confirmed
Estelle Brachlianoff, CEO of the Group, commented:
“Driven by a sustained growth and a solid operational performance, our results demonstrate the robustness of our value-creation model and our ability to move forward with agility, even in an uncertain environment. The increase in EBITDA and the steady improvement in our margin are in line with our GreenUp program objectives and confirm the relevance of our strategic orientations.
The relevance of our positioning also translates into the growth of our boosters activities, up +6.9%(1), driven by innovative offerings in water technologies and good momentum in hazardous waste treatment, notably in Europe.
Our new BeyondPFAS offering, which will enable us to target one billion euros of sales by 2030 in the fight against micropollutants, particularly PFAS, is a perfect illustration of this. It is based on our unique ability to combine all our expertise across the entire value chain, particularly in pollution treatment.
In addition to this momentum, strict operational management has enabled us to move ahead with our synergies plan faster than expected and to raise our annual ambition.
Building on these strengths and bolstered by the underlying trends driving demand in our sector, we continue to grow, confirming all our objectives - 2024 and GreenUp - while dynamically adapting to the challenges of the current economic climate.”
(1) At constant scope and forex excluding energy prices (2) At constant scope and forex
Sustained revenue growth of +5.1%(1) to €32,543m at September 30, with a strong growth in Q3 of +6.7%(1)
- Boosters(2) activities up +6.9%(1) while strongholds(3) activities are up +4.4%(1)
- Strong growth in Water (+6.5%(4)) and Waste (+6.4%(4)). Revenue increase in Energy (+0.8%(1)) with sustained high levels of profitability
- After taking into account the effect of lower energy prices, total Group revenues are up +1.7%(4), after +0.4%(4) during the first half
Solid operational performance with EBITDA growth to €4,936m, up +5.6%(4), within the guidance range of +5% to +6%(4):
- €296m in efficiency gains, for an annual target of €350m
- €96m in synergies, i.s. accumulated amount of €411m ahead of annual target of €400m, which is now raised to €430m
Current EBIT up +6.4%(4), to €2,601m
Dynamic capital allocation policy contributing to value creation:
- Net capex of €2,609m during the first nine months
- ~€1bn of non-strategic asset divestments closed since beginning of the year, including notably the disposals of SADE, as well as Lydec and sulfuric acid regeneration activities in North America (RGS) during the third quarter
- ~€700m of targeted acquisitions signed in priority activities
Net financial debt(5) well under control at €18,892m, with a leverage ratio expected below 3x at end 2024
Objectives for 2024 and GreenUp 2024-27 fully confirmed
(1) At constant scope and forex excluding energy prices (2) Boosters activities: Water Technologies, Bioenergy, Flexibility and Energy Efficiency, Hazardous Waste Treatment (3) Strongholds activities: Municipal Water, District Heating and Cooling Networks, Solid Waste (4) At constant scope and forex (5) Excluding Suez PPA
🔎 2024 Guidance fully confirmed
- Solid organic growth of revenue(1) (2)
- Efficiency gains above €350m complemented by synergies for a cumulated amount of now more than €430m 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
(1) at constant scope and forex / (2) excluding energy prices / (3) excluding Suez PPA
🔎 GreenUp 2024-2027 targets fully confirmed
- Solid revenue growth9
- €350m savings per year
- Over €8bn of EBITDA in 2027
- ~ 10% annual growth10 in current net income over 2023-2027
- Leverage ratio ≤ 3x
- Dividend growth in line with current EPS
9 Excluding energy prices / 10 At constant exchange rates
- €4bn of growth investments, of which €2bn are prioritized on 3 growth boosters
- Decarbonization: 18m tons of CO2 erased in 2027 (scope 4) and 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
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.