Veolia today announced very solid results for the first half of 2019, marked by sustained business growth at a strong pace, driven by very robust commercial momentum, together with an increase in EBITDA.
• Revenue continued sustained growth, coming in at €13,324 million, up 5.5% at constant exchange rates compared with the first half of 2018, with acceleration in the second quarter.
Revenue growth was driven by a continued robust commercial momentum, good volumes, in both waste and water, and price increases (with a positive impact of +1.4% on top-line growth, vs +0.9% in the first half of 2018). Activity levels saw strong gains in most geographic regions (at constant exchange rates):
In France, activity was up +3.9%.
In Europe excluding France, all the areas exhibited growth. Revenue in this region grew by 5.9% overall: +7.8% in Central and Eastern Europe; +4.3% in United Kingdom/Ireland; +2.7% in Northern Europe; +11.5% in Southern Europe.
Rest of the world also recorded growth, rising by +7.8%: +23.9% in Latin America; +10.6% in Asia; +7.0% in the Pacific zone; +4.1% in Africa Middle East.
Global businesses increased by 3.6%.
• EBITDA improved by 5.4% at constant exchange rates to €2,002 million, compared to represented €1,900 million in H1 2018, in particular due to sustained activity combined with cost savings.
• Cost savings reached €121 million, ahead of the annual objective of more than €220 million.
• Current EBIT was up 5.7% at constant exchange rates to reach €857 million, as against €813 million in the first half of 2018.
• Current Net Income Group share totaled €352 million, an increase of 7.2% at constant exchange rates as against €328 million for the first half of 2018 ().
• Net financial debt was €12,478 million as of June 30, 2019, almost stable relative to the year-earlier figure (€12,398 million).
• On July 31, 2019, the Group signed the divestiture of its district energy activities in the United States for a total consideration of €1.25 billion, thus a 2019e EV/EBITDA multiple of 14.2x.