Regulatory News:
Veolia Environnement (Paris:VIE)
- Record 2023 results, above guidance
- 2023 demonstrates Veolia's ability to grow its results thanks
to its unique positioning and strict operational
discipline
- Efficiency and synergies objectives exceeded
- Decrease in net financial debt and leverage of 2.7x,
only 2 years after Suez acquisition
- Great confidence for 2024: another year of strong
results growth expected
Very strong organic Revenue growth of +9%(1) to €45,351m, and
+4.4%(1) excluding energy price impact
- Solid growth in our 3 businesses
- Favorable impact of tariff indexations and of
our strict pricing policy
Strong EBITDA organic growth of +7.8%(1) to €6,543m, above
the guidance range of +5% to +7%:
- €389m of efficiency gains above the annual
objective of €350m
- €168m of synergies, above annual target, and
€315m cumulated
Current EBIT of €3,346m(2), strong organic growth of
+13.7%(1) Current net income of €1,335m(2), up +14.9%(3),
above our target of €1.3bn ROCE back to pre-covid and
pre-Suez levels, at 8.3% after tax
The increase in Free Cash Flow to €1,143m enables a reduction
in net financial debt to €17,903m, with a leverage of 2.74x
Proposal to increase the Dividend to €1.25 per share
Ambitious 2024 guidance:
- Solid organic revenue growth(1)(4)
- Organic growth(1) of EBITDA between +5% and
+6%
- Current net income group share above
€1.5bn(2)
- Leverage ratio maintained below 3x(2)
(1) At constant scope and forex (2) Excluding Suez purchase
price allocation (3) At current exchange rates (4) Excluding energy
prices
Estelle Brachlianoff, CEO of the group, commented: “The
year 2023 will have been another record year for Veolia, exceeding
our targets, with sales of 45 billion euros, EBITDA up 7.8% and
current net income up 14.9% to 1,335 million euros, double that of
2018. These excellent results are the fruit of our unique
positioning in the buoyant ecological transformation market, as
well as of our ongoing efforts to maintain strict operational
control.
Demand for our services has never been so high, with, for
example, a full and fast-growing order book for our Water
Technologies business, at €5.3 billion, a sign that water scarcity
and quality have become one of the primary consequences of climate
change for cities and industries alike.
We have also continued to focus on efficiency, achieving savings
of €389 million, in addition to the benefits of the Suez
acquisition in the form of €168 million in cost synergies, which
exceeded our targets.
2023 is the 7th consecutive year of earnings growth. During this
period, Veolia, the world leader in ecological transformation, will
have absorbed a series of major economic, health, geopolitical and
energy shocks. This uninterrupted growth demonstrates not only our
resilience and capacity to adapt, but also the relevance of our
positioning in the dynamic market of ecological transformation, and
our unique geographic footprint with almost 40% of sales outside
Europe.
We look forward to 2024 with great confidence, perfectly poised
for another year of strong earnings growth, and in particular a
target of current net income above €1.5 billion.”
Impact 2023 strategic plan objectives achieved
In March 2020, as part of its Impact 2023 strategic plan, the
group established a series of financial and extra-financial
objectives for 2023. These objectives have been largely achieved,
including:
- Employee engagement rate of 89%, on target to
exceed 80%, with 7.5% of Group capital held by employees, who are
now our largest shareholder
- 15.4 million tonnes of CO2 avoided
- Net income before non-recurring items in 2023
of €1,335 million (against a target of €1 billion), a doubling
since 2018
- 400 million m3 of water saved by improving
water network efficiency, to 76% by 2023
Detailed results at 31st December 2023
Revenue for 2023 is €45,351 million, up 9% at constant exchange
rates, and +4.4% excluding energy prices.
- The evolution of revenue by effect is as follows:
- The exchange rate effect was -€1,187 million (-2.8%) and
mainly reflects the change in the Argentinian, Australian, US, UK
and Chinese currencies, partially offset by an improvement in the
Polish and Czech currencies(1) .
- Scope effect was -€217 million (-0.5%) and mainly
reflects the disposal of Suez's waste business in the United
Kingdom in November 2022, offset by the full-year consolidation of
Suez assets and the first-time consolidation of Lydec
(Morocco).
- The Commerce/Volumes/Works effect was +€774 million
(+1.8%) thanks to strong sales momentum, as well as growth in
construction and in the Water Technologies business.
- The climate effect was -€232 million (-0.5%). The Energy
business in Central and Eastern Europe was impacted by a milder
winter than in 2022, as well as unfavorable weather conditions in
France, Spain and the United States, which impacted water
consumption over the summer months.
- The impact of energy and recyclate prices amounted to
+€1,579 million (+3.7%), driven by the increase in heat and
electricity tariffs (+€1,978 million) mainly in Central and Eastern
Europe. This increase was partially offset by a fall in recyclate
prices, which affected all recycled materials and mainly Northern
Europe, France and Germany.
- Price effects were very favorable, at +€1,749 million,
mainly due to price indexation mechanisms and increases in the
price of the group's services of +5.2% on average in Waste and
+4.4% in Water.
(1) Main forex impacts by currency : argentinian peso (-€647 M),
australian dollar (-€145 M), US dollar (-€133 M), chinese yuan
(-€87 M), and sterling pound (-€59 M), offset by polish zloty (+€94
M) and czech koruna (+€51 M).
Revenue at 31st December 2023 progressed across all operating
segments compared to 31st December 2022
- Revenue in France and Special Waste Europe amounted to
9,726 million euros, and showed organic growth of +1.4%
compared to 31st December 2022:
- Water France revenue increased by +1.0% to 3,006 million
euros, mainly due to tariff indexations of +6.2%, which offset the
re-municipalization of the Lyon water contract, and lower volumes
by -2.8% due to unfavorable weather.
- The French Waste business grew by +0.7% to 2,909 million
euros: lower recyclate prices and lower volumes were offset by
higher service prices and electricity revenue. Excluding the price
of recyclates, sales rose by 5.4%.
- The Hazardous Waste business in Europe reached 2,125
million euros, slightly down by -0.8% impacted mainly by the fall
in the price of recycled oils, but offset by increased pricing in
the hazardous waste treatment and sanitation businesses.
- SADE revenue grew by +5.2%, thanks to strong commercial
momentum in France.
- Revenue in Europe excluding France reached €19,000
million at 31st December 2023, with organic growth of
+11.6%.
- In Central and Eastern Europe, revenue rose by +19.1% to
11,360 million euros. The region's business was particularly
buoyant, driven by rising electricity prices and tariff revisions
obtained for heating (Poland, Hungary, Czech Republic, Slovakia and
Germany), despite an unfavorable weather effect (-159 million
euros).
- In Northern Europe, revenue of €4,043 million
increased by 5.2%. This increase was mainly due to revenue in the
United Kingdom, up +5.5% on a like-for-like basis, notably thanks
to rate indexation and the favorable effect of electricity prices
on incineration, as well as good business development in waste
collection.
- In Iberia, revenue of 2,603 million euros increased by
+6.6%, mostly due to Water in Spain, driven by good construction
activity, tariff increases, partially offset by lower volumes
(-0.8% vs. 2022), due to unfavorable weather.
- In Italy, revenue of 994 million euros decreased by
-12.5%, mainly due to lower energy prices, with no impact on
margins due to the parallel fall in energy purchase costs.
- Revenue in Rest of the World reached €11,907
million, up 10.0% at constant scope and forex, with
solid growth in all geographies:
- Revenue reached 1,832 million euros in Latin America, up
+30.3%, driven mostly by hyperinflation in Argentina, as well as by
Water in Chile thanks to tariff increases.
- In Africa Middle-East, business grew by +10.0%, to 2,213
million euros, driven mainly by new waste contracts (Istanbul,
Turkey), the start-up of new water facilities (Jeddah, Saudi
Arabia), growth in energy services in the Middle East, and the
progress of water contracts in Morocco, benefiting from slightly
higher volumes.
- In North America, sales came to 3,347 million euros, up
+5.8%. The Hazardous Waste business had a very good year, with
revenue up 6.4% thanks to higher volumes and increased rates. The
Water business benefited from tariff increases, which more than
offset a 1.7% drop in volumes in the "regulated water" business,
impacted by unfavorable weather conditions (with no impact on
margins).
- Sales in Asia amounted to 2,540 million euros, up +4.6%,
driven mainly by Hong Kong (+16.1%), Taiwan (+11.9%) and Japan
(+4.8%). China stabilizes.
- In the Pacific region, sales of €1,975 million were up
+6.4%, mainly due to the effect of tariff revisions and commercial
gains in the Waste business (in particular the city of Goldcoast),
as well as a good commercial performance in industrial
maintenance.
- The Water Technologies business generated sales of 4,707
million euros, up +12.1%, driven by growth at WTS in the
Engineering Systems and Chemical Solutions businesses, as well as
by growth at VWT in its Services and Technologies businesses. Order
intake for the Water Technologies business at December 31st, 2023
(for projects and products, excluding services) amounts to 3,490
million euros, up sharply on December 31st, 2022 (2,662 million
euros), an increase of 31.1%.
By business, at constant scope and exchange rates, the
evolution of revenue is as follows:
- Water revenue rose by 7.5% to €18,409m
- Water Operations rose by +5.9% to €12,627m, with price
increases across all geographies, strong sales growth in Africa
Middle-East, and a good level of construction activity, despite
volumes impacted by unfavorable weather conditions in France, Spain
and the United States.
- Water Technology and Construction rose by +10.8%
to €5,782m, driven mainly by the Water Technologies
businesses.
- Waste sales rose by +3.4% on a like-for-like basis to
€14,683 million, and by +5.9% excluding changes in recyclate
prices. It benefited from favorable price revisions (+5.2%), which
offset the impact of lower recycled materials prices (-2.5% on
sales) in France, Germany and Northern Europe. The
Commerce/Volumes/Works effect was positive (+0.1%), with resilient
volumes, with a decline in Europe (notably in France and Germany)
offset by the rest of the world, and good commercial activity in
Australia and the United Kingdom.
- Energy sales rose by +19.9%. Strong sales growth was
driven by positive price effects (+18.5%), mainly in Central and
Eastern Europe. The unfavorable climate effect on sales for 2023
amounted to -1.5%.
Strong EBITDA growth, to €6,543m vs. €6,196m at 31st December
2022, up +7.8% at constant scope and exchange rates
- The impact of exchange rates on EBITDA amounted to -133
million euros (-2.2%). This mainly reflects a depreciation of the
Argentinean, American, Australian, Chinese and British currencies,
partially offset by a rise in the Polish and Czech currencies.
- Scope effect was almost neutral, at -4 million
euros.
- Commerce/Volumes/Works impact was favorable by +117
million euros.
- Weather impact was -83 million euros.
- Energy and recycled materials prices had a net favorable
impact on EBITDA of +160 million euros, mainly due to higher energy
selling prices net of higher purchasing costs, which offset the
unfavorable impact of recycled materials prices (-88 million euros)
in France, Northern Europe and Germany.
- Efficiency net of gains shared with customers, contract
renegotiations and cost pass-through lag effects came to 122
million euros. The efficiency plan contributed 389 million euros by
2023, above the annual target of 350 million euros.
- Synergies from the integration of Suez amounted to 168
million euros in 2023, ahead of target.
Compared with 31st December 2022, 2023 EBITDA evolution by
segment was as follows:
- France and Special Waste Europe achieved an EBITDA of
€1,338 million, down -5.2% compared with December 31st, 2022, due
to lower recyclate prices, an unfavorable weather effect on water
volumes, partly offset by operating efficiency action plans.
- EBITDA for Europe excluding France totaled €2,599
million. It posted an organic growth of +13.7% compared with
December 31st, 2022, driven by high energy prices and gains in
flexibility and support services in energy in Central and Eastern
Europe, and by tariff increases in water.
- The Rest of the World EBITDA reached 1,925 million
euros, an organic growth of 7.1% compared with December 31st, 2022,
driven by North America, Africa Middle-East and the Pacific.
- The Water Technologies division generated an EBITDA of
534 million euros, with an organic growth of +17.0% compared with
December 31st, 2022, driven by its Engineering Systems Chemical
Solutions and Services & Technologies businesses.
The main changes in EBITDA by business at constant scope and
exchange rates can be analyzed as follows:
- EBITDA for the Water division totaled 3,122 million
euros. It is up +5.4% at constant scope and exchange rates compared
with December 31st, 2022, driven mainly by the Water Technologies
business. In Water Operations, EBITDA benefited from the efficiency
gains and synergies generated in 2023, which more than offset the
impact of weather conditions on volumes.
- EBITDA for the Waste business reached 1,924 million
euros, up +1.0% at constant scope and exchange rates compared with
December 31st, 2022, excluding changes in recyclate prices,
benefiting from efficiency gains and synergies generated over
2023.
- EBITDA for the Energy business reached 1,497 million
euros, a very strong growth of 35.3% at constant scope and exchange
rates compared with December 31st, 2022, benefiting from higher
energy prices and improved energy efficiency at cogeneration
facilities.
Strong current EBIT growth of +13.7% at constant scope and
forex to €3,346m.
- Currency movements weighed by -€72m on
current EBIT.
- The increase in recurring EBIT on a like-for-like basis
(€420m) breaks down as follows:
- Strong EBITDA growth (€+485m at constant scope and exchange
rates).
- Depreciation and amortization (including repayments of
operating financial assets) up 60 million euros at constant scope
and exchange rates.
- Lower industrial capital gains net of asset impairments (44
million euros in 2023 vs. 68 million euros in 2022) due to lower
industrial capital gains.
- Stable share of current net income of JV and associates at 123
million euros, but up +21 million euros at constant scope and
exchange rates.
Current net income group share reached €1,335 million at 31st
December 2023, vs. €1,162 million at 31st December 2022
(+14.9%)
- Financial result was -966 million euros at 31st December
2023 vs. -1,023 million euros at 31st December 2022.
- It includes the cost of net financial debt, down by 81
million euros to -626 million euros at December 31st, 2023,
compared with -707 million euros a year earlier.
- Other financial income and expenses (including capital
gains and losses on financial disposals) amounted to €-350m,
compared with €-386 at December 31st, 2022. This change is due in
particular to the reduction in the fair value of the debt of the
Aguas Andinas subsidiary in Chile (indexed to inflation).
- Taxes totaled -€599 million, reflecting the rise in
pre-tax income from ordinary activities. The current tax rate was
26.5%.
- Minority interests amounted to -€446 million, compared
with -€363 million at December 31st, 2022.
Net income group share was €937 million vs. €716 million at
31st December 2022 (+31%)
Decrease in net Financial debt to €17,903m at 31st December
2023. Free Cash Flow of €1,143m.
Net financial debt stood at €17,903 million (excluding PPA),
compared with €18,138 million at December 31st, 2022. Compared with
December 31st, 2022, the change in net financial debt is mainly due
to the increase in Free Cash Flow to €1,143 million, up €111
million.
Proposal of a dividend increase to €1.25 per share.
The Board of Directors will propose to the Annual General
Meeting of April 25th, 2024 the payment of a dividend of €1.25 per
share in respect of the 2023 financial year, payable in cash. The
ex-dividend date will be May 8th. Dividends for 2023 will be paid
from May 10th, 2024.
Objectives 2024
In view of the very strong 2023 results
and the good start to the year, we can look forward to 2024 with
confidence, and announce ambitious targets.
- 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 of EBITDA between +5% and
+6%(1)
- 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
Agenda
- 18th April 2024: Deep dive USA (New
York & Houston)
- Fall 2024: Deep dive Water
Technologies and Innovation
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.
www.veolia.com
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.
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GROUP MEDIA RELATIONS Laurent Obadia - Evgeniya
Mazalova Anna Beaubatie - Aurélien Sarrosquy Tel.+ 33
(0) 1 85 57 86 25 presse.groupe@veolia.com
INVESTOR RELATIONS Ronald Wasylec - Ariane de
Lamaze Tél. + 33 (0) 1 85 57 84 76 / 84 80
investor-relations@veolia.com
Veolia Environnement (EU:VIE)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Veolia Environnement (EU:VIE)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
