Suez Recycling & Recovery Europe division revenue posted 7.4% growth in Q1/2017

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Source: SUEZ

Paris — In first-quarter 2017, SUEZ increased revenue by +4.7 percent to €3,721m, out of which +3.8 percent on an organic basis. The Recycling & Recovery Europe division posted robust 7.4 percent (+€108m) organic growth in revenue in first- quarter 2017.

Performance was notably driven by a substantial positive price effect on secondary raw materials, particularly scrap metals and paper, up 64 percent and 22 percent respectively, compared with 2016. Volumes processed were up +1.9 percent, notably due to the commissioning of new energy recovery plants in the United Kingdom. The International division continued to increase revenue with +3.3 percent organic growth.

  • Revenue in France was up 10.1 percent (+€72m) on an organic basis. This growth was not only attributable to higher secondary raw materials prices, but also increased volumes across all processing methods, as well as positive commercial developments in industrial waste collection.
  • The United Kingdom/Scandinavia region posted organic growth of +1.9 percent (+€6m). Processing activities recorded growth in the United Kingdom, with the recent commissioning of three new energy recovery plants. Performance in Scandinavia remains dynamic, especially in the services and recycling segments. Completion of the construction of the energy recovery plants in the UK had a negative impact on revenue for the region.
  • Revenue in the Benelux and Germany region rose +5.9 percent (+€20m) on an organic basis. Our services business grew, mainly due to higher industrial and commercial collection volumes and higher prices notably in the Netherlands; the growth in recycling comes from higher volumes, especially plastics.
  • The Industrial Waste Solutions segment grew at a rapid pace of +11.1 percent (+€10m) on an organic basis, lifted by the increase in volumes eliminated, thanks to commercial dynamism in the soil remediation segment.

Chief Executive Officer Jean-Louis Chaussade commented on the first-quarter 2017 results: „Our business in the first quarter is encouraging. Revenue growth posted by the Recycling & Recovery Europe division was particularly strong, fueled by the rebound in raw materials prices and the increase in treated volumes. The International division continued to show growth after a satisfactory year in 2016. Revenue in the Water Europe division edged up slightly, helped by resilient volumes sold in all regions, despite flat inflation rates in both France and Spain. Hence, organic growth of earnings was solid. In this context, we are confident that we will achieve our 2017 targets.

„At the same time, Q1 2017 saw a major milestone for the Group with the signature of an agreement with GE to acquire the US company, GE Water. This deal strengthens SUEZ’s global leadership in industrial water services, a growing and strategically important market for the Group. Moreover, it will also strengthen the Group’s international footprint, especially in the United States. The transaction is expected to be closed as planned during third-quarter 2017.“

The full first-quarter 2017 results can be downloaded under suez.com.

Source: Suez