Changé, France — Séché Environnement has reported consolidated revenue down 9.4% (-9.2% at constant exchange rates) to €106.3 million compared with €117.2 million one year earlier. After restatement for „IFRIC 12“ revenue, which represents investments in concession assets (€1.3 million as at March 31, 2014 compared with €7.9 million last year), consolidated revenue excluding IFRIC 12 came out at €105.0 million, showing a slight contraction of -3.8% (at constant exchange rates) in relation to the same period in 2013 (€109.3 million).
The downbeat macroeconomic environment in France weighed on certain treatment activities within the Hazardous Waste division, notably those related to industrial production like incineration, while the Non-Hazardous Waste division showed greater resilience, underpinned by recurrent markets with local authorities.
In a persistently weak economic environment, the divisions‘ first-quarter activity contracted compared to the same period in 2013, with a more marked contraction in the Hazardous Waste division:
Hazardous Waste division
Revenue came out at €64.3 million (versus €67.8 million one year earlier) at March 31, contracting by 5.2% (5.0% at constant exchange rates), mainly due to a decline in certain industrial markets.
- In France, good resilience in storage activities and the continued development of eco-services (depollution, etc.) were offset by a weaker performance in incineration equipment and platforms which were penalized by persistently downbeat industrial production.
- Also, the PCB activity showed a further significant decline over the period (-32% compared to the first quarter of 2013, at €2.5 million versus €3.7 million).
- The revenue of the Hazardous Waste division in France therefore fell by -5.3% to €59.0 million versus €62.3 million one year ago.
- Internationally, revenue came out at €5.3 million versus €5.6 million, contracting by 5.0% at current exchange rates.
After restatement for the negative currency effect linked to the depreciation of the Argentinean peso (-€0.2 million), international sales fell by just -1.8%.
Non Hazardous Waste division
Revenue came out at €42.0 million (versus €49.4 million, down 15.0% in relation to the first quarter of 2013, mainly linked to investments in concessions („IFRIC 12 revenue“ of €1.3 million compared with €7.9 million one year ago), in accordance with the investment schedule.
After restatement for IFRIC 12 revenue, the division showed a slight fall in revenue growth (-1.9%) to €40.7 million compared with €41.5 million at March 31, 2013. The division benefited from recurrent markets with local authorities (Public Services Contracts) and contracts with industrial groups (comprehensive offerings). However, it continued to be impacted by the decline in storage activities, in line with the trend seen in 2013.
Outlook for 2014
In 2014, Séché Environnement can rely on its recurrent markets with utilities, while a resumption of growth in its industrial markets is still partly dependent on a recovery of industrial production in France. Given the drab macroeconomic environment and low visibility on the evolution of its industrial markets, Séché Environnement expects revenue excluding IFRIC 12 to remain stable in 2014 compared to 2013.
Source: Business Wire