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Press release: Paris, November 7, 2018 - KEY FIGURES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2018 (329.89 KB)



€18,761M, +6.6% FOR THE NINE MONTHS

€2,418M, +6.9%1 FOR THE NINE MONTHS

€80M in Q3, after €78M in Q2 and €70M in Q1

€1,100M, GROWTH OF +9.8%1



1 At constant exchange rates
Published date at current exchange rates for nine months: revenue up 4.3%, EBITDA up 5.1%, current EBIT up 7.4%, and current net income-group share up 15.5%, and 14.7% excluding capital gains.


Antoine Frérot, Chairman and CEO, indicated: “Veolia’s 9-month results are very satisfying.  Revenue growth is sustained and solid, and provides operating leverage resulting in a growth in net current income of 20%1 as of September 30. The third quarter was particularly good, with an acceleration of all of our operational indicators.  Growth in revenue and income in the third quarter is the strongest performance since 2014: revenue is thus up by 7.8%1, EBITDA is up 9.4%1, and current EBIT up 18.4%1. The Group's growth is driven by our commercial dynamism and our continued strict discipline in terms of cost reduction. The cost savings achieved for the nine months are perfectly in line with our annual objective of €300M. The combination of these performances allows us to fully confirm our objectives and to be confident in our outlook for 2019.”

• Group consolidated revenue was €18,761M compared to €17,991M represented in the first nine months of 2017, a growth of 4.3% at current exchange rates, of 6.6% at constant exchange rates, and of 4.7% at constant scope and exchange rates.

Veolia once again delivered strong revenue growth, +7.8% at constant exchange rates in Q3, after +5.1% in Q2, and +7.0% in Q1.

Exchange rate variation had an unfavorable impact of €419M on revenue as of September 30 (notably -€120 M coming from the weakening of the dollar, -€77M from the Argentinian peso, -€67M from the Australian dollar, and -€21M from the British pound).  The impact was -€357M in the first half of the year, and was considerably reduced in Q3.

The scope effect was positive for €345M, principally the effect of small tuck in acquisitions completed in 2017.

The impact of energy prices (+€130M) and recycled materials (-€96M of which -€119M due to lower paper prices) totaled +€34M and is stable compared to June 30.

At constant exchange rates, the variances for the first 9 months were as follows:

  • In France, activity increased slightly (+0.7%).  Water revenue was stable (-0.1%) with price indexation of +0.7% and volume increase in Q3 thanks to a hot summer, but volumes were still down 0.7% at the end of September.  Waste grew by 1.7% (after -0.7% et the end of June) thanks to good commercial momentum and excellent volumes (+4.3%), partially compensated by the decrease in recycled material prices.
  • Europe excluding France grew by 7.0%.  All regions exhibited growth. Central and Eastern Europe grew by 5.7% (4.1% at the end of June) in spite of unfavorable climate impact in Energy, thanks to the increase in energy prices, and in Water, to good volumes (+0.7%) and price increases. Northern Europe registered strong growth (+12.0%).  Germany grew by 4.6% thanks to the good momentum in Waste activity. Benelux was up by 22.1% and the Scandinavian countries by 46.5%, with the impact of acquisitions made in 2017. UK/Ireland progressed by 3.8% thanks to high availability rates for the PFIs, good commercial wins with industrial customers, and electricity price increases.
  • The Rest of the World continued to grow strongly with an increase of 12.9%.  North America progressed by 4.4% (+13.1% in organic growth) in spite of the divestiture of Industrial Services, thanks to the strong performance of Energy in Q1, commercial successes (notably in Energy Efficiency and Industrial Water), and good volumes and prices in Waste.  Latin America rose by 30.2% due to tariff increases, good commercial development, and the integration in May 2018 of the activities of Grupo Sala, a leader in hazardous and municipal waste in Colombia. Asia grew by 18.1%. China was up by 13.5% with strong growth in Waste (hazardous and recycling), and in Energy.  Equally solid performances came from South Korea in Industrial Water and Japan with the startup of the Hamamatsu concession. The Pacific Zone grew by 13.2% thanks to the startup of new assets and targeted small acquisitions in Waste. Africa and Middle-East were up by 9.6% due to good performances in Energy services in the Middle-East.
  • Global Businesses revenue increased by 4.6%, after being up 1.3% at the end of June.  Hazardous Waste continued to exhibit strong growth (+9.5%) thanks to good commercial momentum, an increase in treated volumes, and good progression in oil recycling.  Construction activity picked up in the third quarter, +3.2% at Veolia Water Technologies, whose backlog also grew (+4% annually, at €1,884M). SADE revenue was up by 20.1% in the 3rd Quarter with good performance in France.

At constant exchange rates and excluding the impacts from construction and Energy prices, revenue was up by 5.1 in Q3, following +5.3% in Q2 and +4.6% in Q1.


By activity, at constant exchange rates: Water revenue increased by 2.9%.  Waste exhibited strong growth, +9.8% at the end of September, with excellent volumes, up by 4.0% (+3% in Q1, +4.9% in Q2, +4% in Q3).  Energy was up by 8.8% thanks to very favorable commercial and volume impacts, and increases in heating and electricity prices in North America and Central Europe, partially compensated by an unfavorable weather impact (-€25M) especially in Central Europe in Q2.  


The Group once again delivered excellent commercial performance in the course of the first 9 months of the year, of note:  

  • In Water in France, Veolia won the wastewater concession for the metropolis of Bordeaux (7 year contract for €352M).  
  • In Industrial markets, the Group won new contracts in Energy Efficiency, including Dow Dupont in Virginia (United States) and Arcelor Mittal at Fos-sur-Mer (€450M, 20-year contract).
  • Furthermore, the rate of renewal for expiring contracts remains very satisfactory in all of the Group’s businesses.

EBITDA was up by 6.9% at constant exchange rates, at €2,418M compared to €2,301M for represented September 30 2017 (+5.1% at current exchange rates)

  • The exchange rate variation had a negative impact of -€41M on EBITDA, but was compensated by the scope effect of +€52M.
  • At constant exchange rates, the combination of sustained revenue growth with the continuing high level of cost savings (€228M: €80M in Q3, €78M in Q2, and €70M in Q1) resulted in a 6.9% progression in EBITDA.  Reintegrating Gabon, EBITDA growth would have been 4.7% at constant exchange rates. Energy and recycled material prices had an unfavorable impact of -€64M on EBITDA growth, including the squeeze effect on fuel prices and heating prices of -€20M in Q1 in Central Europe, the impact of lower paper prices of -€18M, and a diesel fuel price increase of -€22M.
  • EBITDA variances at constant exchange rates break down as follows: in France, EBITDA was stable, in line with revenue evolution.  Water EBITDA grew thanks to the cost savings achieved. Waste showed a decline as a result of lower recycled paper prices. In Europe excluding France, EBITDA grew in spite of the price cost squeeze in Energy in Central and Eastern Europe.  EBITDA in the Rest of the World is showing strong growth, driven by revenue growth. In Global Businesses, EBITDA rebounded, with continuing double-digit growth for Hazardous Waste and a clear improvement in construction in Q3 (Veolia Water Technologies and SADE).

Current EBIT increased by 9.8% at constant exchange rates, and reached €1,100M compared to €1,024M for represented September 30, 2017. (+7.4% at current exchange rates).

  • Exchange rate variation had a negative impact of -€25M on current EBIT
  • Current EBIT variation benefited from the growth in EBITDA. Depreciation (including principal repayment on operating financial assets) was stable at €1,233M compared to €1,227M for represented September 30, 2017.  Provision reversals were down and the amount of provisions, fair-value adjustments, and gains on industrial disposals reached +€27M vs. +€75M for represented September 30, 2017. The contribution of equity-accounted joint ventures and associates to current net income increased by 13 M€ to 89 M€.

Current Net Income Group Share was €457M, compared to €396M for September 30, 2017 represented results, a 20% increase at constant exchange rates (and +18.1% at constant exchange rates and excluding capital gains).

  • Cost of net financial debt was down, at -€301.3M (vs. -€311.8M) thanks to our active debt management policy and the reduction in the carrying cost of the cash.  Other current financial expenses and income were -€110.7M compared to -€115.8M for September 30, 2017 represented.
  • Capital gains on financial disposals were €30.6M vs. €14.7M for represented September 2017, mainly due to the divestiture of the Industrial Services activity in the United States.
  • The current tax rate was stable at 24.3%.

Gross industrial capex reached €1,134M (€982M at the end of September 2017), with stable maintenance investments (at €467M) and growth investments up from €516M to €667M, in line with the acceleration of commercial development.

Net Financial Debt was up on September 30, 2018 due to the reimbursement of the hybrid debt for €1,452M.

Net financial debt reached €10,527M on September 2018; the increase vs. December 31, 2017 is due to:

  • The reimbursement of the hybrid debt for €1,452M
  • An unfavorable seasonal variation in working capital of €789M
  • Net financial investments for €283M

Net financial debt will be significantly lower than €10 billion at the end of the year, before taking into account the divestiture of Transdev.

Adjusted for the hybrid debt reimbursement and considering the sale of Transdev, net financial debt should be at a level comparable to recent years.

********** Fully confirmed objectives
  • 2018 (at constant exchange rates):
    • Continuation of sustained revenue growth
    • EBITDA growth greater than that of 2017
    • Cost reductions of more than €300M
  • 2019* :
    • Continuation of revenue growth and full effect of cost savings
    • EBITDA between €3.3bn and €3.5bn (excluding IFRIC 12), and between €3.5bn and €3.7bn including IFRIC 12
  • Dividend growth in line with that of current net income

* At constant exchange rates (based on rates at the end of 2016)

  Veolia group is the global leader in optimized resource management. Present on the five continents and with close to 169 000 employees, the Group designs and provides water, waste, and energy management solutions that contribute to the sustainable development of communities and industries.  Through its three complementary business activities, Veolia helps to develop access to resources, to preserve available resources, and to replenish them.In 2017, the Veolia group supplied 96 million people with drinking water and 62 million people with wastewater service, produced nearly 55 million megawatt hours of energy and converted 47 million metric tons of waste into new materials and energy. Veolia Environnement (listed on Paris Euronext: VIE) recorded consolidated revenue of €25.12 billion in 2017 (USD 30.1 billion).

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 requiring significant financial and human resources, 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 divesture 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 Autorités 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 ( 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.



Group Media Relations
Laurent Obadia
Sandrine Guendoul
Tél : + 33 (0)1 85 57 42 16
[email protected]

Investor & Analyst Relations
Ronald Wasylec - Ariane de Lamaze
Tél. : + 33 (0)1 85 57 84 76 / 84 80