Q1/2016: Lower European recycling & recovery revenues at Suez

Logo: SUEZ

Paris, France — In first-quarter 2016, SUEZ increased revenue by +0.5 percent to €3,555m, out of which +1.5 percent on an organic basis. The “Recycling & Recovery Europe” division posted negative organic growth. The “International” division posted strong growth in revenue, up +9.5 percent on an organic basis; the “Water Europe” division was stable, with a +0.3 percent organic increase.

The Recycling & Recovery Europe division posted a -1.9 percent (-€29m) decline in revenue in first-quarter 2016 on an organic basis. Performance was notably impacted by a substantial negative price effect on secondary raw materials (notably ferrous metals, down 34 percent on 2015) and energy. Adjusted for this impact, revenue rose slightly, by +0.8 percent. Treated volumes fell slightly by -0.4 percent, in-line with the gloomy industrial production.

Commenting on the first-quarter 2016 results, Chief Executive Officer Jean-Louis Chaussade said: „The trend in business of the Group in the first quarter was consistent with our expectations, with the European environment – and in France in particular – remaining lackluster. Our momentum was reflected by a number of commercial successes in all our regions. The “International” division continued to post strong growth and, as expected, reported a positive turnaround in profitability. Despite the absence of inflation and following the termination of the Lille contract, “Water Europe” division revenue was practically stable. However, the “Recycling & Recovery Europe” division was impacted by the continued decrease in the price of raw materials, including electricity. Overall, these trends enable the Group to remain on track to meet its annual objectives.“

Source: Suez Environnement Company