Press release: 2024 Key Figures at 30 September 2024
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
(1) At constant scope and forex excluding energy prices (2) At constant scope and forex (3) At constant forex (4) Excluding energy prices and weather impact
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.”
(1) At constant scope and forex (2) At constant forex
🔎 2024 Guidance fully 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
ABOUT VEOLIA
Veolia group aims to become the benchmark company for ecological transformation. Present on five continents with nearly 218,000 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.