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Press release: 2017 First half results - Paris, July 31, 2017 (338.61 KB)


  • EBITDA UP 0.4%2 TO €1,651 MILLION



Antoine Frérot, Veolia Environnement’s Chairman & CEO commented: “The performance achieved during the first half of 2017 was once again satisfactory. Revenue growth was consistent during the period, with an increase of 4.4% in the second quarter, following 4.5% growth achieved in the first quarter. The decision taken at the end of last year to increase our commercial expenses is already bearing fruit and confirms the attractiveness of our offers. Despite the aforementioned costs, and an unfavorable comparison base, the Group’s results posted a slight increase this semester, and thus we remain confident in the achievement of our annual objectives. In addition, efficiency efforts generated €126M in cost savings during the first half, in line with our annual objective. The two levers of our strategy, growth and operational efficiency, are clearly functioning well, and as a result we confirm our objectives.” 

  • Group consolidated revenue increased 4.4% at constant exchange rates (+4.3% at current consolidation scope and exchange rates) to €12,346 million in the first half of 2017, compared to represented €11,835 million in the first half of 2016. At constant consolidation scope and exchange rates revenue grew 3.1%.

Revenue growth was consistent during the semester, with +4.4% growth at constant exchange rates in 2Q2017 after +4.5% growth in 1Q2017. 

At constant exchange rates, the variations in revenue recorded during the first half of 2017 were as follows:

  • In France, revenue declined slightly (-0.9%) in the first half of 2017, but at constant consolidation scope, revenue increased 1.4%. Water revenue was down by 0.7%, but recorded improved growth in the second quarter (Q1: -2.6% and Q2: +1.1%) due to good water volumes, which progressed 0.4% in the first half of 2017 given favorable weather. However, price indexation was -0.3%. Waste revenue recorded a 1.2% decline due to the divestiture of Bartin at the end of 2016, but at constant consolidation scope was up 4.1% due to strong commercial momentum, an increase in landfill volumes (+2.4%) and higher paper prices.  
  • Europe excluding France revenue posted strong growth (+5.9%), recording a 4.4% increase in Q2 after +7.2% in Q1. Revenue in all geographies progressed, with the exception of Italy (-5.1%). Central & Eastern Europe recorded strong growth (+10.4%) due to favorable weather trends in both Q1 and Q2 in the energy business, the integration of the Prague  Left Bank district heating network, as well as good water volumes in Czech Republic and the startup of the new Armenia contract. Germany continues to record solid growth (+4.8%) due to good waste volumes and the benefit of higher paper prices.  UK revenue grew 4.5% due to good commercial momentum and higher paper prices. 
  • The Rest of the World recorded double digit revenue growth (+11.3%), with 10.8% growth achieved in Q2 after 11.8% in Q1.  North America revenue increased 16.7%, primarily due to the integration of the sulfuric acid regeneration assets acquired from Chemours, but continues to post strong declines in its industrial services activity. Latin America revenue grew 23.7% due to significant price increases and good volumes, in addition to the consolidation of the Pedreira landfill in Brazil. Asia revenue rose 18.9%, driven by China growth of 36.6%, which benefited from strong performance in industrial water (in particular the Sinopec contract), good hazardous waste volumes and good performance in Energy. Australia operations were almost stable, posting a 1.0% revenue decline as the continued weakness in industrial services activity more than offset growth in the rest of the Waste business. Finally Africa and Middle East revenue was largely stable.   
  • Global Businesses segment revenue was stable (-0.7%) with a solid improvement in Engineering and Construction activities in the second quarter.  Veolia Water Technologies revenue stabilized in Q2 (-0.1%) after a 15.7% decline in Q1 and also recorded an increase in backlog. Revenue in the SADE business also recovered in Q2 (+2.0%) after a 4.8% decline in Q1, due to strong activity in France. Lastly, Hazardous Waste revenue increased 2.8%.

Excluding the impact of construction revenue and energy prices, group consolidated revenue increased 5.0% at constant exchange rates.

By business and at constant exchange rates, Water revenue recorded a small decline in the first quarter      (-0.9%), which was more than offset by growth in the second quarter (+2.8%) to achieve 1.0% growth in the first half of 2017 due to improvement in Construction activities and higher Q2 volumes. The Waste business remained quite strong, with 4.4% revenue growth in Q2 following +8.1% in Q1, resulting in 6.3% growth in the first half. Waste revenue growth benefited from higher service prices (+1.1%), volume impacts (+0.6%), higher recycled raw material prices (+1.5%) and the consolidation of Chemours’ assets in the United States and the Pedreira landfill in Brazil. The Energy business posted 9.2% growth in the first half (+9.7% in Q1 and +8.5% in Q2), with notably a favorable weather impact in Central Europe, the integration of the Prague Left Bank district heating network and good performance in China.

  • EBITDA grew 0.4% at constant exchange rates (+0.3% at current consolidation scope and exchange rates) to €1,651 million in the first half of 2017, compared to represented €1,646 million in the first half of 2016.
    • The impact of foreign exchange rate variations negatively impacted EBITDA by -€1 million.
    • At constant exchange rates, EBITDA benefited from the Group’s two growth levers: cost savings (impact of €126 million during the first half) on one hand, and continued revenue growth (impact of €27 million) on the other hand. The margin pressure related to very weak price indexation in Water contracts, the impact of reinforced commercial efforts and a tough comparison base related to non-recurring items that favorably impacted the first half of 2016 offset the aforementioned positive impacts. Overall EBITDA recorded an increase of €5 million, or 0.4%.
    • In France, EBITDA increased 4.4%. French Water EBITDA improved 2.4% due cost savings and higher water volumes (+0.4%). Strong Waste EBITDA growth of 9.6% was driven by cost savings, combined with revenue growth at constant consolidation scope. In Europe excluding France, segment EBITDA was down by 3.2%, and was negatively impacted by a tough comparison base in 2016 in Germany and Benelux, and plant outages in the UK during the first half of 2017. Central and Eastern Europe EBITDA recorded improvement due to favorable weather benefiting the Water and Energy businesses. The Rest of the World posted strong EBITDA growth of +8.3%. Strong growth in the United States was driven by the integration of the Chemours’ assets and despite challenges in the industrial services business and unfavorable weather in the Energy business. China registered strong EBITDA growth (+14.4%) due to good hazardous waste volumes, solid performance in the Energy business and due to the Sinopec contract. EBITDA in Australia increased 1.3% and Africa Middle East progressed 3.5%. EBITDA in the Global Businesses segment declined by 10.0%. Veolia Water Technologies EBITDA was down due to the non-recurrence of a favorable contract termination in 2016. Hazardous Waste businesses continued to grow at an elevated rate (+8.6%).
  • Current EBIT rose 0.6% at constant exchange rates (+0.3% at current consolidation scope and exchange rates) to €773.8 million versus represented €771.2 million in the first half of 2016.
    • The variation of current EBIT resulted from the increase in depreciation and amortization expense of €18 million (including principal payments on operating financial assets). The contribution of the share of current net income of joint ventures and associates increased by €5 million to €48 million due primarily to strong performance in China (€30 million). Net provision reversals were comparable to that of the prior year (+€54 million in the first half of 2017 vs. represented +€47 million in the first half of 2016).
  • Current net income – Group share amounted to €295 million, compared to represented €323 million in the first half of 2016, a decline of 8.6%.  Excluding net financial capital gains, current net income – Group share increased 4.4% at constant exchange rates.
    • The cost of net financial debt was stable at -€209 million. The gross cost of borrowing improved 55 basis points to 3.13%, but with higher average gross debt following bond issuances in the first half of 2017 to benefit from low interest rates in anticipation of reimbursement of bonds coming due in 2018.
    • Other current financial income and expense amounted to -€74.6 million, compared with represented -€72.5 million in the first half of 2016.
    • Net financial capital gains were much lower in the first half of 2017, amounting to €4.5 million compared with represented €40.6 million in the first half of 2016.
    • The current tax rate was 27%.
    • Non-controlling interests increased to €78.1 million versus represented €74.5 million in the first half of 2016, benefiting from good results in Central and Eastern Europe and in Asia. 
    • Current net income – Group share amounted to €295 million (-8.6%). Excluding capital gains, current net income improved by 4.2%.
    • Published net income – Group share reached €205 million, versus represented €252 million in the first half of 2016. 
  • At June 30, 2017, net financial debt amounted to €8,561 million, compared with represented €8,678 million at June 30, 2016.
    • Net financial debt declined by €117 million.
    • Net Free Cash Flow excluding seasonal working capital variations generated during the first half of 2017 amounted to €537 million, compared with represented €548 million in the first half of 2016.
    • Industrial investments remain under control (€593 million compared with represented €609 million in the first half of 2016).
    • The seasonal variation in working capital amounted to -€713 million.  


  • Objectives confirmed.
  • 2017 outlook* 
    • Resumption of revenue growth
    • Stable EBITDA, or moderate EBITDA growth 
    • Increased efforts to reduce costs: more than €250 million in cost savings
  • 2018 outlook*
    • Continuation of revenue growth
    • Resumption of more sustained EBITDA growth
    • More than €300 million in cost savings
  • 2019 objective*
    • Continuation of revenue growth and full impact of cost savings
    • EBITDA between €3.3bn and €3.5bn (excluding IFRIC 12)


*At constant exchange rates
[1] Results in course of audit

[2] At constant exchange rates. At current consolidation scope and exchange rates: Revenue up 4.3%, EBITDA up +0.3% and current EBIT up +0.3%.


********* Veolia group is the global leader in optimized resource management. With over 163,000 employees worldwide, 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, preserve available resources, and to replenish them.
In 2016, the Veolia group supplied 100 million people with drinking water and 61 million people with wastewater service, produced 54 million megawatt hours of energy and converted 30 million metric tons of waste into new materials and energy. Veolia Environnement (listed on Paris Euronext: VIE) recorded consolidated revenue of €24.39 billion in 2016.

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, 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. 


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