Changé, France; Tuesday, April 25, 2023
PRESS RELEASE
Activity in Q1 2023
Sharp increase in contributed revenue: +19%
Sustained organic growth: +12%
2023 business targets confirmed
Q1 2023 confirms the continuation of the positive trends of the last months of 2022 with a high level of activity in most of Séché's businesses and geographical regions.
In France, the Group is fully benefiting from its positioning in the consistently buoyant circular economy and decarbonization markets, while its environmental services activities are experiencing strong growth. Internationally, the Group generally confirms the positive trends in its markets against the challenging Q1 2022 baseline.
This good start to the year confirms the Group's expectations for 2023.
As of March 31, 2023, contributed revenue stood at €249.3 million, representing an increase of +19.2% compared to the same period last year (€209.1 million).
At constant scope and exchange rates, contributed revenue rose sharply (+11.9%), which reflects the Group's sustained high activity levels across all its main geographical regions.
In France, the Group achieved robust performance with contributed revenue up +14.9% organically1 and confirmed the solidity of its industrial and municipal markets, underpinned by the dynamic growth associated with the implementation of the circular economy and the strong performance of its services activities.
Internationally, with a +5.1% organic growth, the Group demonstrated global solid performance and a favorable environment, despite unequal contributions from the subsidiaries considering the high level of activity in Q1 2022 bolstered by its exceptional spot contracts among others.
Séché is confident that it will achieve its growth targets for 2023.
- At constant scope and exchange rates
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Press release - Tuesday, April 25, 2023
Commentary on business in Q1 2023
As of March 31, 2023, Séché Environnement published consolidated revenue of €248.0 million, compared to €226.6 million one year earlier, representing an increase of +17.3%.
The reported revenue includes non-contributed revenue, which can be broken down as follows:
In €M - as of March 31 | 2022 | 2023 | ||
IFRIC 12 investments | 4.5 | 2.2 | ||
General tax on polluting activities | 13.0 | 14.2 | ||
Non-contributed revenue | 17.5 | 16.4 | ||
Contributed revenue stood at €249.3 million, compared to €209.1 million as of March 31, 2022, an increase of +19.2% for the period.
This increase includes a scope effect of +€18.0 million over Q1 2023.
- All'Chem (consolidated as of June 1, 2022): +€4.7 million
- Séché Assainissement 34 (consolidated as of July 1, 2022): +€1.0 million
- Séché Assainissement Rhône-Isère (consolidated as of January 1, 2023): +€1.2 million
- Séché Traitement Effluents Industriels (consolidated as of December 1, 2022): €11.1 million
At constant scope, contributed revenue totaled €231.3 million, representing an increase of +10.7% at current exchange rates and +11.9% at constant exchange rates vs. Q1 2022.
Breakdown by geographic scope
Consolidated data in €m
As of March 31 | 2022 | 2023 | Gross change | Organic change |
Subsidiaries in France | 145.2 | 184.8 | +27.2% | +14.9% |
o/w scope effect | 18.0 | |||
International subsidiaries | 63.8 | 64.5 | +1.2% | +5.1% |
o/w scope effect | - | |||
Contributed revenue | 209.1 | 249.3 | +19.2% | +11.9% |
As of March 31, 2022, contributed revenue at constant exchange rates amounted to €206.7 million, showing a negative currency effect of €(2.4) million over the period.
The performance in France confirms the Group's dynamic industrial and municipal markets, while international growth relates to the challenging Q1 2022 baseline:
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In France, contributed revenue stood at €184.8 million, a strong increase of +27.2% compared to March 31, 2022. This increase includes a scope effect of €18.0 million. At constant scope, growth came to +14.9%, illustrating the Group's buoyant markets.
Séché benefits from strong industrial markets driven by growing sustainability challenges, while the local authority markets confirmed their solid performance boosted by the implementation of regulations on the circular economy.
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Press release - Tuesday, April 25, 2023
Therefore, over the period, this scope saw strong momentum in Service activities (+22.6% at constant scope) and activities relating to the circular economy and decarbonization (+14.4% at constant scope).
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International revenue was €64.5 million, up +5.1% at constant exchange rates compared to Q1 2022.
This increase reflects uneven contributions from the different geographical regions and subsidiaries, some of which registered especially high levels of activity in Q1 2022 due to either the spot contracts in the Environmental Emergencies business lines (Spill Tech), or to a strong market resurgence after the 2020-2021 downturn caused by the Covid crisis (Solarca).
Analysis by activity
Consolidated data in €m
As of March 31 | 2022 | 2023 | Gross change | Organic change |
Services | 92.3 | 120.7 | +30.8% | +20.0% |
o/w scope effect | - | 13.3 | ||
Circular economy | 66.4 | 78.2 | +17.8% | +10.5% |
o/w scope effect | - | 4.7 | ||
Hazardousness | 50.4 | 50.5 | +0.2% | -0.4% |
o/w scope effect | - | - | ||
Contributed revenue | 209.1 | 249.3 | +19.2% | +11.9% |
The Service activities posted a tremendous increase (+30.8% in reported data), which partly reflects the scope effect associated with the integration of STEI and the Wastewater Sanitation activities acquired during 2022 and early 2023 (+€13.3 million).
At constant scope and exchange rates, Service activities rose considerably (+20.0%), which illustrates the dynamic growth driving the environmental emergencies and total waste management solutions activities in France and internationally (especially in Peru).
Activities relating to the circular economy confirmed their high performance with growth of +17.8% (reported data) and +10.5% organic growth. They were supported in France and abroad by regulations and the growing level of demand from customers on the lookout for low- carbon solutions and for regenerated materials or recovery energy.
Hazard Management activities were stable over the period, which tends to conceal their robust performance in France (+6.3%), where these activities posted positive commercial effects (volume, price and mix effects), while internationally (especially Latin America) revenue dipped slightly when compared to the same period in the previous year (business strong rebound after 2020 and 2021 hit by the Covid crisis).
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Press release - Tuesday, April 25, 2023
Analysis by division
Consolidated data in €m
As of March 31 | 2022 | 2023 | Gross change | Organic change |
Hazardous Waste | 132.7 | 165.2 | +24.6% | +12.3% |
o/w scope effect | - | 15.8 | ||
Non-Hazardous Waste | 76.4 | 84.2 | +10.1% | +11.4% |
o/w scope effect | - | 2.2 | ||
Contributed revenue | 209.1 | 249.3 | +19.2% | +11.9% |
The recovery and treatment divisions posted a sustained level of activity and delivered an equal contribution to organic growth:
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The Hazardous Waste division recognized revenue of €165.2 million, up by +24.6% compared to Q1 2022.
At constant scope and exchange rates, the division's growth was up +12.3%, reflecting the driving force of all the activities in France and, internationally, the increase in Service activities (particularly Latin America). - The Non-HazardousWaste division achieved revenue of €84.2 million, an increase of +10.1% over the period.
Subtracting the scope effect related to the consolidation of the Wastewater Sanitation activities acquired in 2022 and early 2023, the division's growth reached +11.4% at constant exchange rates, which mainly reflects the dynamic performance of the activities associated with the Circular Economy in France and Services in France and internationally (particularly Interwaste in South Africa).
Growth outlook confirmed
This good start to the year confirms Séché Environnement's growth prospects for the current year.
While Q2 should again provide a high baseline for comparing activities in France and internationally, Séché is reiterating its confidence in its ability to achieve its business growth targets in 2023.
The Group has confirmed its expectation of achieving organic growth of about 5% in its historical scope and aiming for contributed revenue of close to €1,000 million, including the pro rata contribution of the scopes acquired in 2022 and early 20232.
- All'Chem, Séché Assainissement 34, STEI, Séché ARI
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Séché Environnement SA published this content on 25 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2023 16:34:08 UTC.