Today the Group unveils its new growth plan for the period 2016-2018, which is based on two main drivers: a gradual recovery in revenue growth and continued improvement in operational efficiency.
An average of 2 to 3% revenue growth per year by 2018
Veolia is targeting a resumption of growth in its revenues by means of an improved balance between municipal and industrial client activities, including stronger growth outside Europe. In the Municipal market, Veolia will continue to address municipalities’ needs, both in developed and emerging countries. The Group expects average annual revenue growth of around 2% in this market. Within the industrial market, Veolia expects average annual revenue growth of around 5%, with growth efforts concentrated on six priority segments: oil, gas and chemical sectors, mining, metals and power sectors, the food, beverage and pharmaceutical sectors, as well as the hazardous waste, dismantling and circular economy markets.
Continued improvement in operational efficiency
The Group is also planning to make savings of more than €600 million over the 2016-2018 period. Savings will come 45% from operational performance, 35% from purchasing optimization and 20% from the reduction of SG&A costs.
Antoine Frérot, Veolia’s Chairman and CEO explained, "Our 2018 objectives are ambitious: Revenue should grow by more than €2 billion during the period, current net income should exceed €800 million and net free cash flow should nearly double to €1 billion. Confidence in our plan allows the Group to return to a dividend growth policy beginning this year, with the 2015 fiscal year dividend expected to be €0.73 per share, and annual dividend growth around 10% per year expected for the next three years.”
-The full presentation is available on the site http://www.veolia.com/en/veolia-group/finance-area
-The press release
Date of publication: 14 December 2015