Suez reports slight organic growth of European recycling & recovery division

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Source: SUEZ

Paris, France — According to latest figures, the Suez Group posted revenue in 2016 of €15,322m, up €187m compaired to 2015. The financial statements show a total organic growth of +1.1 percent (+€162m), including Water Europe by -1.3 percent (-€62m), Recycling & Recovery Europe by +0.6 percent (+€39m) and International by +4.7 percent (+€188m).

The Recycling and Recovery Europe division reported revenue of €6,302m, an organic increase of 0.6 percent. Volumes treated increased by +1.4 percent overall. Business activity in the segment stabilized despite a negative effect from the prices of raw materials (with a -10 percent decrease in ferrous metals and an -8 percent decrease in plastic) and electricity, which had a negative impact on revenue of -€36m. Revenue in France was down -1.7 percent in organic terms, mainly reflecting the lackluster economic environment. Outside France, activity grew in the UK and Scandinavia region (+4.6 percent in organic terms) and in the Benelux and Germany region (+1.7 percent) and Central Europe (+4.6 percent).

The division’s EBIT was €310m, an organic increase of +2.0 percent. In a mixed economic environment in Europe, the ongoing cost optimization efforts generated Compass savings of €71m, offsetting the negative -€27m impact on margin of the decrease in electricity revenues. Reversals of provisions relating to the landfilling activity offset the negative impact on Ebitda of expenditures of the long-term rehabilitation of sites.

Jean-Louis Chaussade, CEO, commented on the annual results: „In 2016 our performance was consistent with our targets, in an environment that turned out to be more contrasted and difficult than expected. Revenue growth was driven by the International division, while our profitability improved and our cash flow generation was robust. These results illustrate the resilience of our portfolio of business activities, based on diversified exposure both in geographical and market terms. The results also highlight our ability to react quickly in an uncertain environment.“

And he added: „In 2017 the Group is stepping up its transformation and staying ahead of trends in its businesses, namely the resource revolution and the digitization of services. Improving our margin will hinge on the continued optimization of our cost base in mature countries and the priority given to the development of business activities in the most favorable markets, notably outside Europe and with industrial customers. In this environment, the Group is targeting slight organic growth in revenue and EBIT in 2017.“

The full annual report can be downloaded under suez-environnement.fr.

Source: Suez