Paris, France — According to Veolia`s Annual Results report, the revenue of its waste sector reached 8,506.3 Million € at the end of December 2014 that represents an increase of 5,0 percent.
At constant consolidation scope and exchange rates, the change is largely related to:
- In the United Kingdom: Revenue rose substantially by +15.4 percent at current consolidation scope and exchange rates (+4.9 percent at constant consolidation scope and exchange rates) due to the contribution of integrated contracts in Waste operations (higher business volumes relating to the start-up of the PFI in Staffordshire and the increase in construction revenue, particularly in Leeds) and the increase in commercial collection, hazardous waste and industrial services volumes;
- In the Central and Eastern European countries: Revenue grew 0.2 percent at constant consolidation scope and exchange rates (+73.5 percent at current consolidation scope and exchange rates) in line with tariff increases in the Water business (mainly in the Czech Republic and Romania), offset by a decrease in construction activities in Romania (Water);
- These impacts were partially offset by declining revenue in Germany of nearly -5.4 percent at constant consolidation scope and exchange rates, primarily due to the continuing decline in commercial collection and sortingrecycling volumes in the Waste business, as well as the unfavorable weather impact in the first and fourth quarters of 2014 for the Braunschweig contract.
- In France, waste activities reported relatively stable revenue (+0.1 percent at current consolidation scope, -0.3 percent at constant consolidation scope). A slightly favorable volume effect (+0.4 percent) and an increase in net prices (+0.7 percent excluding materials), were offset by lower recycled raw material prices and volumes.
Revenue in the combined Water and Waste activities increased 5.6 percent at constant exchange rates (+3.3 percent at constant consolidation scope and exchange rates.)
- In France revenue declined slightly (-1.4 percent at constant scope), with Water revenue also slightly down due the combined impact of contractual erosion and lower price indexation (+1.2 percent in 2014 versus +2.2 percent in 2013) related to lower inflation. Revenue was stable in Waste activities.
- Revenue in the Europe excluding France region increased 35.9 percent at constant exchange rates due to the consolidation of Dalkia International. At constant consolidation scope and exchange rates, revenue was stable (-0.2 percent), with good momentum in Waste activities in the United Kingdom but a decline in revenue in Germany due to the negative weather effect on the Braunschweig contract.
- The rest of the world segment recorded steady growth at constant consolidation scope and exchange rates (+6.7 percent), with particularly good performance in the United States (+5.8 percent), Asia (+6.6 percent), the Pacific region (+6.1 percent) and in Africa Middle East (+9.3 percent). The segment also benefitted from the integration of Proactiva’s Water and Waste activities in Latin America, contributing to 23.8 percent growth at constant exchange rates.
- Global businesses revenue growth returned (+9.7 percent at constant consolidation scope and exchange rates), with 3.9 percent growth at SARP Industries, +13.5 percent in engineering and +9.5 percent at Sade.
The change in revenue over 2014 benefited:
- In France, from the good resilience of Water and Waste activities. Waste revenue in France remained stable, while Water revenue contracted slightly;
- In Europe excluding France, from steady growth due to solid momentum in the UK (+4.9 percent at constant consolidation scope and exchange rates ) related to the commissioning of Waste assets;
- In the rest of the world, substantial growth (+6.7 percent at constant consolidation scope and exchange rates) in all regions and specifically industrial contracts in Asia and Australia and favorable price impacts in Australia and the United States. The segment also benefited from the consolidation of the Water and Waste activities of Proactiva Medio Ambiente in Latin America;
- In the Global Businesses segment, from solid momentum, with substantial revenue growth (+9.7 percent at constant consolidation scope and exchange rates) made possible by the start-up of major engineering-construction projects at Veolia Water Technologies and SADE.
The full report can be downloaded from finance.veolia.com.
Source: Veolia Environnement