Paris — Veolia`s total revenue growth was consistent during the semester, with +4.4 percent growth at constant exchange rates in second quarter 2017 after +4.5 percent growth in first quarter 2017. In France waste revenue recorded a 1.2 percent decline due to the divestiture of Bartin at the end of 2016, but at constant consolidation scope was up 4.1 percent due to strong commercial momentum, an increase in landfill volumes (+2.4 percent) and higher paper prices. Germany continues to record solid growth (+4.8 percent) due to good waste volumes and the benefit of higher paper prices. UK revenue grew 4.5 percent due to good commercial momentum and higher paper prices.
North America revenue increased 16.7 percent, primarily due to the integration of the sulfuric acid regeneration assets acquired from Chemours, but continues to post strong declines in its industrial services activity. Latin America revenue grew 23.7 percent due to significant price increases and good volumes, in addition to the consolidation of the Pedreira landfill in Brazil.
Asia revenue rose 18.9 percent, driven by China growth of 36.6 percent, which benefited from strong performance in industrial water (in particular the Sinopec contract), good hazardous waste volumes and good performance in Energy. Australia operations were almost stable, posting a 1.0 percent revenue decline as the continued weakness in industrial services activity more than offset growth in the rest of the Waste business. Finally Africa and Middle East revenue was largely stable.
Antoine Frérot, Veolia Environnement’s Chairman & CEO commented: “The performance achieved during the first half of 2017 was once again satisfactory. Revenue growth was consistent during the period, with an increase of 4.4 percent in the second quarter, following 4.5 percent growth achieved in the first quarter. The decision taken at the end of last year to increase our commercial expenses is already bearing fruit and confirms the attractiveness of our offers.“
So Frérot balanced: „Despite the aforementioned costs, and an unfavorable comparison base, the Group’s results posted a slight increase this semester, and thus we remain confident in the achievement of our annual objectives. In addition, efficiency efforts generated €126M in cost savings during the first half, in line with our annual objective. The two levers of our strategy, growth and operational efficiency, are clearly functioning well, and as a result we confirm our objectives.”
The full first half year results 2017 can be visited under veolia.com.
Source: Veolia Group