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Veolia Environmental Services Exceeds Q3 Earnings Expectations

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Finishing up a strong third quarter of the fiscal year, Veolia Environmental Services shares its earnings report results with enthusiasm.

Veolia Environmental Services (Paris:VIE), or Veolia, is a company based out of France providing water management, waste management, and energy services across Europe, North America, Africa, and Asia.

After the third quarter of the fiscal year concluded in September of this year, Veolia was proud to announce its results today, November 9th, 2022.

Introducing the exciting news were Estelle Brachlianoff, Chief Executive Officer, and Claude Laruelle, Chief Finance Officer.

For Veolia, quarter three was just another of growth and representative of the year as a whole.

“After an excellent first half of the year, showing both very strong revenue and EBITDA growth, Veolia continued in Q3 with a similar trajectory with continued very strong growth of all its activities, water, waste, and energy,” said Brachlianoff.

Similar to the first half of this fiscal year, during Q3 the company witnessed a strong level of revenue growth.

This revenue acceleration was represented in all segments of the company.

Looking specifically at the company’s France and Special Waste segment you will see it alone garnered revenue of €7 135 M. When compared to the third quarter of 2021, this is organic growth of 3.2 percent.

Of the "France and Special Waste" segment, the “Hazardous Waste activities in Europe” sector experienced the highest revenue growth at 5.7 percent. This growth is believed to be due to higher prices in oil and lubricant treatment activities.

One of the leading reasons for Veolia’s prosperous quarter is a successful acquisition and merger with Suez. 

“On top of this excellent performance, I am also very happy about the remarkable execution of the integration of Suez,” says Brachlianoff.

Thanks to this acquisition, the company has witnessed revenue of €30 713 M in the nine months of 2022. This is up 49.1 percent at constant forex compared to the nine-month marker of 2021. The acquisition of Suez contributed €7 128 M to the company's overall revenue growth.

Veolia also witnessed efficiency gains of more than €350M complemented by €100M of synergies from the first year of integration of Suez.

“The speed and fluidity with which the teams of Veolia and Suez have come together and are working together is a great satisfaction. I want to thank all of them for the energy and enthusiasm they show every day in the service of our great ambition to become the world leader of the ecological transformation,” says Brachlianoff.

Another area of visible growth within the company was displayed in its reported EBITDA stats. Quarter three witnessed an EBITDA growth of 5.2 percent.

This was driven by activity growth of €57 M, and by efficiency gains of €264 M due to effective merger synergies for €98 M.

This sets Veolia ahead of its annual goal within just nine months.

Quarter three of 2021 benefited from a positive one-off of €83 M. Comparatively, Veolia had an EBITDA growth of 9.4 percent from Q3 of 2021 to Q3 2022, excluding the one-off. 

In total there was an organic growth of EBITDA between 4 and 6 percent.

Overall, the company has accomplished impressive quarterly results that represent consistent growth within the company.

Both Brachlianoff and Laruelle expressed enthusiasm about where the company currently stands financially, and their hopes for the final quarter of the fiscal year. Already ahead of some of its annual targets, Veolia is expected to finish off the year with exceptional results.

“These very good results allow us to fully confirm all our 2022 objectives and to be very well positioned for another year of strong growth in 2023,” shared Brachlianoff in her closing statement.

Q3 2022 Highlights

Revenue Growth: +13.7 %

Net Income Group Share: around €1.1bn

EBITDA: €4 533 M

 

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