SECHE ENVIRONNEMENT (EPA:SCHP) Revenue in line with expectations at EUR 366 million
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28/01/2010 17:40
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Press release
Changé - January 28, 2010
Solid activity in 2009
Revenue in line with expectations at EUR 366 million
Market resistance entrenched in the fourth quarter
· Hazardous waste: business in line with expectations, particularly in France
· Non-Hazardous waste: more favorable trends continue
Financial health reinforced in 2009
· Assumption of stable financial aggregates and balance sheet ratios compared
to 2008 confirmed
Hime/Saur: activity maintained in 2009
· Water: markets in France are holding up
· Cleanliness: commercial refocus in difficult markets
2009 illustrated the overall soundness of Séché Environnement's activities.
In more difficult markets in 2009, notably with regard to certain industrial
clients, the Group was able to limit the impact of the economy on its
businesses through its highly responsive commercial strategy and exclusive
positioning on highly regulated waste treatment and recovery markets with low
sensitivity to business cycles.
The stabilization of the Hazardous Waste business was entrenched in the
fourth quarter, albeit at lower levels than those witnessed in 2008, and the
now more favorable trends continued in the Non-Hazardous Waste business.
In line with expectations, particularly in France, the trend in consolidated
activity includes a substantial base effect associated with highly buoyant
activity in the fourth quarter of 2008 and is still being dragged down by a
continuing sluggish international economy.
Revenue at December 31, 2009 totaled EUR 365.6 million, down 3.6% excluding
base effects, illustrating the soundness of the Group's activity over the year
as a whole.
For these reasons, Séché Environnement is also maintaining its assumption for
financial aggregates and balance sheet ratios for 2009 at the same levels as
last year.
Reported consolidated data in EUR m (under IFRS)
As at December 31 2008 2009 Change
2009/2008
Hazardous Waste 267.0 250.7 -6.1%
Non-Hazardous Waste 116.2 114.9 -1.1%
Consolidated net revenue 383.2 365.6 -4.6%
Activity during the fourth quarter confirmed the trends that appeared over the
year, with differences in trends between the HW and NHW businesses on the one
hand, and between France and International activity on the other:
* Hazardous Waste Business (69% of revenue): the fourth quarter is
traditionally the strongest in terms of revenue, which totaled
EUR 66.4 million and were in line with expectations.
The change in revenue (down 12.0% compared to the same period in 2008)
reflects the highly unfavorable base effect of the previous fiscal year,
as well as the ongoing sluggish international economic backdrop.
· In France, revenue amounted to EUR 61.1 million (down 11.3% on the
fourth quarter of 2008).
Restated for a 2008 base effect estimated at EUR 4 million, activity
in the fourth quarter was down 5.8%, reflecting the stabilization of
these activities, but at lower levels than last year.
Thus, while regulated activities (PCB, decontamination, etc.) confirmed
their buoyancy, the business remains impacted by the decline in
activity directly associated with industrial production.
· Revenue from international business (5.4% of consolidated revenue)
at current exchange rates totaled EUR 5.3 million vs. EUR 6.6 million
for the same period last year, representing a 19.4% decline for the
period(1). International activities mainly suffered from the poor
performance of solvent regeneration businesses
(Valls Quimica in Spain).
* Non-Hazardous Waste Business (31% of revenue): the business benefited
from its exclusive positioning in treatment activities, away from the
highly cyclical sorting and recycling businesses.
The fourth quarter confirmed improved market trends (up 3.2% on the same
period in 2008 to EUR 29.2 million). The business also benefited from
green electricity sales totaling EUR 1.9 million in the fourth quarter
alone (EUR 6.1 million for the whole of 2009).
Solid consolidated activity in 2009, characterized by trends which are in line
with Séché Environnement's expectations, enabled the Group to confirm its
assumption for its 2009 financial aggregates and balance sheet ratios, while
also reinforcing the Group's solid financial position.
(1) At constant exchange rates, fourth-quarter 2008 revenue generated abroad
would have amounted to EUR 6.4 million (full-year revenue would have totaled
EUR 22.5 million compared to EUR 22.9 million at current exchange rates
in 2008).
Outlook
Against an economic backdrop that remains uncertain in France in 2010,
Séché Environnement will be able to draw on the resilience of its regulated
markets and a diversified portfolio of solid clients faced with increasingly
complex waste treatment and recovery issues.
On the Non Hazardous Waste markets, Séché Environnement will benefit from the
positive trends, reinforced by the regulations from the Grenelle de
l'Environnement, which promote reducing the number of sites and developing the
recovery businesses, in which the Group has already achieved a substantial
competitive advantage.
On the Hazardous Waste markets, Séché Environnement is present in a variety of
regulatory niches which constitute solid growth bases. Additionally, the Group
will promote its expansion in the growth and high added-value waste management
outsourcing markets.
Consequently, Séché Environnement should mainly benefit from the entrenchment
of the commercial trend renewed in 2009 with its industrial and local authority
client bases in order to reinforce the Group's development in 2010.
Hime - Saur consolidated revenue at December 31, 2009
Hime's consolidated revenue totaled EUR 1,516.9 million, down 1.3% on the
previous year.
This almost stable showing compared to 2008 illustrates the buoyancy of the
Water businesses and the resistance of Cleanliness activities over the year:
· Water (down 1.2% to EUR 1,209.7 million): delays in the Works division
in France (down 9.2%) and less favorable international markets
(down 11.6%) have offset solid core business activity (Water and
Sanitation in France up 4.9%);
· Cleanliness (down 1.6% to EUR 307.2 million): commercial performance on
local authority markets has counterbalanced a more difficult situation
on industrial markets (especially in businesses related to secondary raw
materials).
Consolidated data in EUR m (under IFRS)
As at December 31 2008 2009 Change
2009/2008
Water 1,224.7 1,209.7 -1.2%
Cleanliness 312.2 307.2 -1.6%
Consolidated revenue 1,536.9 1,516.9 -1.3%
A conference call will be held today at 6.00p.m. (Paris time)
at +33 1 72 00 13 60
where a hostess will welcome you.
The revenue presentation is also available at:
http://www.groupe-seche.com/majic/pageServer/1e0101000m/en/
Presentations-SFAF.html
Calendar:
Publication of consolidated results at December 31, 2009 on March 15, 2010
after the close of the markets.
About Séché Environnement
Séché Environnement is one of the leading players in the treatment and storage
of all types of non-radioactive industrial and household waste in France. Its
facilities enable it to offer high-quality global solutions that incorporate
all environmental requirements.
It is the leading independent operator in the country with a unique positioning
in activities, concentrating on the higher added-value end of the recovery,
waste management and storage markets.
The Group offers integrated specialized services:
the treatment (by incineration, physical-chemical treatment and solvent
regeneration) and processing for recovery of hazardous and non-hazardous
waste (HW and NHW);
storage of ultimate hazardous or non-hazardous waste (HW or NHW).
In April 2007, Séché Environnement acquired a 33% stake in Saur Group, the
No. 3 player in the Water and Environmental Services sector in France. Since
May 2008, Séché Environnement has held an option to purchase an 18% stake in
Hime, the parent holding company of Saur Group, allowing Séché Environnement
to assume ownership of Saur Group by May 2012.
Séché Environnement has been quoted on Eurolist by Euronext since
November 27, 1997.
Compartment B - ISIN: FR 0000039109 - Bloomberg: SCHP.FP - Reuters: CCHE.PA).
Contacts
Séché Environnement
Manuel Andersen
Head of Investor Relations
+33 (0)1 53 21 53 60
m.andersen@groupe-seche.com
Important notice
This press release may contain information of a provisional nature. This
information represents either trends or targets at the date of the press
release's publication and may not be considered as results fore casts or as
any other type of performance indicators. This information is by nature subject
to risks and uncertainties which are difficult to foresee and are usually
beyond the Company's control, which may imply that expected results and
developments differ significantly from announced trends and targets. These
risks notably include those described in the Company's Registration Document,
which is available on its website at www.groupe-seche.com. This information
there fore does not reflect the Company's future performances, which may differ
significantly therefrom, and no guarantees can be given regarding the
achievement of any pro visional figures. The Company makes no commitment on the
updating of this information. More comprehensive information on the Company may
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