SUEZ Paris, October 28th 2020 - 5:45 pm
Rigorous execution of SUEZ 2030 translates into strong Q3 results
Revenue and EBIT guidance for H2 confirmed
Board of Directors reinforced with two new members
- Q3 2020 results ahead of expectations
- Revenue up +0.4% organically in Q3, notably driven by Environmental Tech & Solutions,
to €4,396m in Q3 and totaling €12,562m year-to-date
- EBIT at €336m in Q3, totaling €413m year-to-date
- H2 2020 revenue and EBIT guidance confirmed1:
- H2 2020 Revenue to be down organically -4% to -2% versus last year
- H2 2020 EBIT estimated around €600m to €650m
- Net debt in sharp decline at €10,291m compared to September 30th, 2019 and June 30th, 2020
- Solid commercial momentum: numerous contracts won in Asia and in the US; strengthened pipeline of opportunities
- Board of Directors reinforced with two new members: Mr. Bertrand Meunier, Chairman of the Board of Directors of Atos, and Jacques Richier, Chairman and CEO of Allianz France. Both qualify as independent Directors.
Commenting the strengthening in the board, Philippe Varin, Chairman of the Board of Directors of SUEZ, declared:
"On behalf of the Board of Directors, I am delighted to welcome Mr. Bertrand Meunier and Mr. Jacques Richier to the Board as independent directors. Both have exceptional international experience in financial investments, technology and risk management. The Board is strengthened by these new skills serving the defence of SUEZ's corporate interest and strategy. I would also like to thank Isidro Fainé Casas et Francesco Caltagirone for their involvement in the implementation of SUEZ 2030 and I am pleased with the continued support of Criteria Caixa as a major shareholder of SUEZ. »
Commenting the performance of the Group, Bertrand Camus, CEO of SUEZ, added:
- The rigorous execution of SUEZ 2030 strategic plan translates into Q3 results ahead of our initial expectations - both in terms of revenue organic growth and profitability. We are therefore in a position to confirm our H2 2020 revenue and EBIT guidance.
1 H2 2020 guidance assuming no return to a generalized, region-wide confinement situation, and constant FX and commodity prices
SUEZ | Page 1 sur 8 |
Head Office: Tour CB21 - 16, Place de l'Iris, 92040 Paris La Défense Cedex, France - Tel: +33 (0)1 58 81 20 00 - www.suez.com |
Limited Liability Company with a share capital of €2,513,450,316 - Siren (French business administration number) 433 466 570 RCS Nanterre - VAT FR 76433 466 570
The implementation of SUEZ 2030 is a success in all its dimensions: our performance plan increases our profitability and cash generation, which reduces our debt; our asset rotation plan is progressing rapidly and allows reinvestment to fuel our growth; lastly and above all, our sales teams have recorded numerous successes that bring innovative solutions to the service of our customers.
Our responsibility is to enhance the value of SUEZ for all our stakeholders. As such, our main objective is to continue to execute this strategy which is positioning the Group to seize the opportunities of the next decade, while delivering tangible results and creating value today for all our shareholders - as evidenced by our third quarter results.
I want to take this opportunity to thank again our employees who are committed to delivering our essential services during this sanitary crisis while relentlessly driving a transformation that aims at developing our industrial project for the benefit of all stakeholders. »
KEY FIGURES AT END SEPTEMBER 2020
The Board of Directors of SUEZ examined the consolidated financial statements at September 30th, 2020 at its meeting held on October 27th, 2020. They were subject to review by the Audit Committee at its meeting of October 26th, 2020.
- Q3 performance
In millions of euros | Q3 2019 | Q3 2020 | Gross | Organic | Variation |
Variation | Variation | at constant FX | |||
Revenue | 4,471 | 4,396 | -1.7% | +0.4% | +0.4% |
EBITDA | 809 | 795 | -1.8% | +0.9% | +0.6% |
EBITDA / CA | 18.1% | 18,1% | |||
EBIT | 371 | 336 | -9.4% | -6.0% | -6.6% |
EBIT / CA | 8.3% | 7.7% | |||
- YTD performance
In millions of euros | YTD 2019 | YTD 2020 | Gross | Organic | Variation |
Variation | Variation | at constant FX | |||
Revenue | 13,127 | 12,562 | -4.3% | -2.9% | -3.0% |
EBITDA | 2,330 | 1,991 | -14.6% | -11.7% | -12.1% |
EBITDA / CA | 17.8% | 15.8% | |||
EBIT | 1,016 | 413 | -59.4% | -54.7% | -55.5% |
EBIT / CA | 7.7% | 3.3% | |||
Concerning EBITDA and EBIT, it is reminded that the Group accounted for respectively €61m and €281m estimated costs and provisions associated with the business conditions in the first half. These are mainly linked to the additional costs of doing business during the pandemic, risks linked to business interruption in for example construction activities and the potential impacts of increased payment defaults.
- Net Debt
SUEZ | Page 2 sur 8 |
Head Office: Tour CB21 - 16, Place de l'Iris, 92040 Paris La Défense Cedex, France - Tel: +33 (0)1 58 81 20 00 - www.suez.com |
Limited Liability Company with a share capital of €2,513,450,316 - Siren (French business administration number) 433 466 570 RCS Nanterre - VAT FR 76433 466 570
In millions of euros | Sept. 30th, | Sept 30th, | Gross |
2019 | 2020 | Variation | |
Net Debt | 10,600 | 10,291 | -2.9% |
Net Debt / EBITDA | 3.4x | 3.6x | +0.2x |
PERFORMANCE BY SEGMENT
WATER
In millions of euros | 2019 | 2020 | Gross | Organic | Variation |
Variation | Variation | at constant FX | |||
Revenue - Q3 | 1,804 | 1,735 | -3.9% | -1.7% | -1.3% |
Revenue - YTD | 5,178 | 4,956 | -4.3% | -2.7% | -2.5% |
- WATER segment reported revenue of €1,735m in Q3 2020, down -1.7% (-€30m) vs. Q3 2019 in organic terms.
Performance per region in Q3 was the following:
- In Europe revenue was down -2.1% (-€21m) organically. Compared to Q3 last year, volumes of water sold were flat in France and -3.5%in Spain. The positive impact from hot and dry weather this summer was more than offset by sluggish tourist activity in both countries. Tariffs were up +1.8% in France, and down -0.9%in Spain, factoring in the 4.95% decrease established by the metropolitan region of Barcelona effective since January 2020.
- Americas revenue declined by -5.6% (-€27m) on an organic basis. Performance in Latin-America continued to be affected negatively by the continuation in Q3 of the containment measures in most of the continent. In Chile, the positive effects of tariffs, up +1.9%, was more than offset by the effects of the -5.9% decrease in volumes. In the US, the favourable weather conditions drove volumes of water sold up +2.3% in Q3 and tariffs were up +1.9%, supporting revenue growth as regulated water business continued to see little impact from Covid-19.
- Asia-Pacific revenue was up +14.4% (+€20m) in organic terms notably driven by better water volumes in China, except in Macao where low tourist activity is still impactful.
- Revenue in AMECA recorded an organic decline of -1.2% (-€3m).
RECYCLING & RECOVERY
In millions of euros | Q3 2019 | Q3 2020 | Gross | Organic | Variation |
Variation | Variation | at constant FX | |||
Revenue - Q3 | 1,864 | 1,859 | -0.3% | +0.6% | +0.3% |
Revenue - YTD | 5,605 | 5,311 | -5.2% | -4.2% | -4.6% |
SUEZ | Page 3 sur 8 |
Head Office: Tour CB21 - 16, Place de l'Iris, 92040 Paris La Défense Cedex, France - Tel: +33 (0)1 58 81 20 00 - www.suez.com |
Limited Liability Company with a share capital of €2,513,450,316 - Siren (French business administration number) 433 466 570 RCS Nanterre - VAT FR 76433 466 570
- RECYCLING & RECOVERY reported revenue of €1,859m in Q3, up +0.6% (+€11m) on an organic basis. Performance per region in Q3 was the following:
- Europe revenue was up +0.5% (+€8m) organically, reflecting both the effects of continuing pricing momentum and improvement in processed waste volumes: after historical lows in Q2, they were overall down only 1.0% in Q3 vs. same period last year.
- Asia Pacific revenue was slightly up +0.3% (+€1m) on an organic basis, as a result of continued improvement in processed waste volumes partly offset by sluggish pricing dynamics.
ENVIRONMENTAL TECH & SOLUTIONS
In millions of euros | 2019 | 2020 | Gross | Organic | Variation |
Variation | Variation | at constant FX | |||
Revenue - Q3 | 900 | 878 | -2.5% | +1.6% | +1.6% |
Revenue - YTD | 2,608 | 2,521 | -3.4% | -1.6% | -1.7% |
- ENVIRONMENTAL TECH & SOLUTIONS reported revenue of €878m in Q3, up +1.6% (+€14m) on an organic basis. It reflects a resilient performance of WTS (+1.8% organically to €616m) and a solid performance Hazardous Waste with an organic increase of +4.6% to €150m. Smart Environmental Solutions business has recorded an organic decline of -3.2% to €113m, notably impacted by delay on performance contracts in Latin America where containment measures were maintained in Q3.
Performance per region in Q3 was the following:
- Americas revenue was up +1.0% (+€4m) organically, notably thanks to the resilient performance of WTS.
- Europe revenue was down -1.6% (-€6m) in organic terms, reflecting an improved performance of Hazardous Waste, driven by better though volatile evolution of treated volumes, a solid WTS performance and a weaken SES due to the slow recovery of works in France.
- Asia Pacific revenue was up +8.6% (+€11m) organically, mainly reflecting the better development of Hazardous Waste activity.
- AMECA revenue was up +18.5% (+€6m) organically.
SUEZ | Page 4 sur 8 |
Head Office: Tour CB21 - 16, Place de l'Iris, 92040 Paris La Défense Cedex, France - Tel: +33 (0)1 58 81 20 00 - www.suez.com |
Limited Liability Company with a share capital of €2,513,450,316 - Siren (French business administration number) 433 466 570 RCS Nanterre - VAT FR 76433 466 570
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original document
- Permalink
Disclaimer
Suez SA published this content on 28 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2020 17:19:06 UTC
