SUEZ ENVIRONNEMENT (EPA:SEV) SUEZ performance as of September 30, 2021 : Improved growth and operating profitability EBIT target for 2021 adjusted upward
Transparency directive : regulatory news
03/11/2021 17:45
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Press releaseParis, 3 November 2021 - 5:45pm
SUEZ performance as of September 30, 2021
Improved growth and operating profitability EBIT target for 2021 adjusted
upward
* Revenues of EUR13,006 million, with organic growth of +9.8% vs. 9M 2020 and
+6.3% vs. 9M 2019
o The Recycling & Recovery activity continues to benefit from robust volumes
and pricing, and continued high prices for recycled raw materials
o Strong resilience of the Water activity
o Environmental Tech & Solutions records solid growth
* Improved operational performance:
o EBITDA at EUR2,452 million, with organic growth of +29.0% vs. 9M 2020 and
+11.9% vs. 9M 2019
o EBIT at EUR1,253 million: +EUR840 million vs. 9M 2020 and +EUR266 million
vs. 9M 2019
* EBIT for the full year 2021 now expected above EUR1,500 million
* Net debt at EUR8,761 million, down sharply from September 2020
* The Group's CO2 emission reduction target in line with the 1.5°C trajectory
has been validated by the SBTi
* Preparatory works for the creation of the new SUEZ and those related to the
Veolia takeover bid are ongoing and continue to aim for completion of the
operation around the end of the year
Bertrand Camus, CEO of SUEZ, said:
"As at 30 September 2021, SUEZ's successful transformation is clearly evident
in the robust growth and significant strengthening of the Group's operating
profitability, both of which are well above our performance during the same
period in 2020 and 2019. Our debt is under control thanks to a strong cash
generation. These results have given us even more confidence in achieving our
2021 targets.
As the international community meets in Glasgow at COP26 to discuss the fight
against global warming, SUEZ is fulfilling its commitments in this area. We are
the first company in our sector to have its CO2 emissions reduction target
validated by the SBTi (Science Based Targets initiative), a joint program
between the CDP, the United Nations Global Compact, the World Resources
Institute (WRI) and the WWF (World Wide Fund for Nature).
Once again, I would like to thank the SUEZ teams, who have been particularly
busy in recent months. They have demonstrated a remarkable degree of commitment
to our customers."
KEY FIGURES AS AT 30 SEPTEMBER 2021
The consolidated results as at 30 September 2021 were reviewed by the Audit
Committee at its meetings on 25 October and 3 November 2021.
* Performance in Q3 2021
In million euros
Q3 2019 Q3 2020 Q3 2021 Gross change Change excl. Organic Organic
vs 2020 FX vs 2020 change vs change
2020 vs 2019
Revenues 4,471 4,395 4,294 -2.3% -2.8% +7.6% +7.5%
EBITDA 809 795 851 7.2% +7.1% +15.2% +13.1%
EBITDA /
Revenue 18.1% 18.1% 19.8%
EBIT 371 336 455 +35.2% +36.2% +45.0% +29.7%
EBIT / Revenue 8.3% 7.7% 10.6%
? Performance for the first 9 months of 2021
9M 2019 9M 2020 9M 2021 Gross change Change excl. Organic Organic
vs 2020 FX vs 2020 change vs change
2020 vs 2019
Revenues 13,127 12,562 13,006 +3.5% +4.0% +9.8% +6.3%
EBITDA 2,330 1,991 2,452 +23.2% +23.4% +29.0% +11.9%
EBITDA /
Revenue 17.7% 15.8% 18.9%
EBIT 1,016 413 1,253 +203.6% +202.8% +203.5% +26.2%
EBIT / Revenue 7.7% 3.1% 9.5%
With regard to EBITDA and EBIT, it should be noted that in the first half of
2020 the Group recognized -EUR61 million and -EUR281 million in costs and
provisions, respectively, related to the economic situation, including the
pandemic.
? Net debt
In million euros 30 September 30 June 30 September Gross change
2020 2021 2021 vs Sept. 20
Net debt 10,291 8,625 8,761 -14.9%
Net debt / EBITDA 3.6x 2.7x 2.7x -0.9x
* "New SUEZ" perimeter
The Group is making available to the public selected Financial Indicators
relating to the "new SUEZ" perimeter for the first nine months of 2020 and the
first nine months of 2021. These elements are available on the Group's website:
https://www.suez.com/en/suez-veolia-documents
WATER
In million euros
2019 2020 2021 Gross change Change excl. O rganic Organic
vs 2020 FX vs 2020 change vs change
2020 vs 2019
Revenue ? Q3 1,804 1,735 1,733 -0.1% -0.3% +1.5% -0.3%
Revenues ? 9M 5,178 4,956 5,017 +1.2% +1.8% +3.2% +0.4%
* In the first nine months of 2021, the WATER segment recorded revenue of
EUR5,017 million, with organic growth of +3.2% (+EUR157 million) compared to 30
September 2020.
* Europe: organic growth was +4.7% (+EUR126 million) in the first nine months
of 2021. Water volumes sold in France were down slightly, at -0.4%, largely due
to the impact of unfavorable summer weather conditions. In Spain, they rose by
1.7% compared with the first nine months of 2020, which had been heavily
affected by pandemic-related restrictions and weak tourist activity. Tariffs
are up +1.4% on average in France and are stable at +0.0% in Spain.
* Americas: organic growth was +3.4% (+EUR42 million) in the first nine months
of 2021. In the United States, water sales volumes are down -0.8% since the
beginning of the year, with third quarter sales impacted by poor weather
conditions. In Chile, water sales volumes are up +1.3%, as the first nine
months of 2020 were affected by the strict pandemic-related restrictions.
Prices, supported by inflation, are also up by +3.8%.
* Asia-Pacific: organic revenue growth was negative, falling -4.9% (-EUR16
million) in the first nine months of 2021. The third quarter was particularly
affected by the impact of phasing in construction activities. In addition, the
pandemic-related restrictions in Macau continued to affect tourism activity and
consequently water sales volumes.
* AMECAI: organic revenue growth was +0.7% (+EUR5 million) in the first nine
months of 2021.
* EBIT in the Water segment grew organically compared to the first nine months
of 2020 and 2019.
RECYCLING AND RECOVERY
In million euros
2019 2020 2021 Gross change Change excl. Organic Organic
vs 2020 FX vs 2020 change vs change
2020 vs 2019
Revenue ? Q3 1,864 1,859 1,733 -6.8% -7.6% +15.5% +15.5%
Revenues ? 9M 5,605 5,311 5,646 +6.3% +5.6% +18.4%
+12.8%
* The RECYCLING AND RECOVERY segment recorded revenue of EUR5,646 million in
the first nine months of 2021, with organic growth of +18.4% (+EUR976 million)
compared to 30 September 2020. The volume of waste processed rose by +3.3%.
* Europe: organic growth was +20.4% (+EUR901 million) in the first nine months
of 2021. In France and continental Europe, the activity continued to benefit
during the third quarter from robust pricing dynamics, a continued increase in
waste volumes processed and the persistently high price levels for recycled raw
materials. In the UK, optimizing the availability and saturation of processing
capacities supported performance, despite operational disruptions caused by the
shortage of HGV drivers.
* Asia-Pacific: revenue grew organically by +8.6% (+EUR69 million) in the first
nine months of 2021, driven by higher waste volumes in the region compared to
the first nine months of 2020 and additional volume inputs from the landfill
activity in Hong Kong.
* AMECAI: revenue fell slightly in organic terms by -0.6% (-EUR0 million) in
the first nine months of 2021; in the Americas region, organic revenue growth
rose by +17.4% (+EUR6 million).
* EBIT for the Recycling and Recovery segment recorded organic growth in the
first nine months of the year compared to 2020 and 2019, benefiting in
particular from the robust price dynamics and high prices for recycled raw
materials.
ENVIRONMENTAL TECH & SOLUTIONS
In million euros
2019 2020 2021 Gross change Change excl. Organic Organic
vs 2020 FX vs 2020 change vs change
2020 vs 2019
Revenue ? Q3 900 878 899 +2.4% +2.1% +1.4% +2.8%
Revenues ? 9M 2,608 2,521 2,567 +1.8% +4.4% +4.1% +2.2%
* ENVIRONMENTAL TECH & SOLUTIONS recorded revenue of EUR2,567 million in the
first nine months of the year, representing organic growth of +4.1% (+EUR102
million) compared to 30 September 2020.
The Water Technologies & Solutions activity recorded sales of EUR1,768 million
in the nine months to 30 September 2021, with organic growth of +1.0% compared
to 30 September 2020, led by the continuing strong performance of the products
activity. Smart & Environmental Solutions revenues showed strong organic growth
of +18.8% to EUR367 million compared to 30 September 2020, supported by robust
third quarter sales and good performance in the digital, decentralized and
asset revenue performance activities in France. Finally, the Hazardous Waste
activity has benefited from the recovery in industrial waste volumes, and has
recorded organic revenue growth of +6.6% to EUR431 million as at 30 September
2021.
* Americas: organic revenue growth was negative, falling -1.9% (-EUR21 million)
in the first nine months of 2021. Within the WTS activity, the robust
performance in products and services, supported by strong sales, did not
compensate for weak growth in the Chemical Monitoring & Solutions activity in
this region.
* Europe: organic growth rose +7.9% (+EUR78 million) in the first nine months
of 2021. The hazardous waste activity benefited from the increase in waste
volumes processed compared to the first nine months of 2020, which were heavily
impacted by the pandemic.
* Asia-Pacific: revenue grew organically by +15.3% (+EUR55 million) in the
first nine months of 2021. In China, the volume of waste processed continues to
rise sharply, and now exceeds 2019 levels.
* AMECAI: organic revenue growth was negative, falling -9.0% (-EUR10 million)
in the first nine months of 2021.
* EBIT for the Environmental Tech & Solutions segment showed organic growth
compared to the first nine months of 2020 and 2019. This performance is largely
due to the contribution of WTS in the first nine months of 2021, double that of
2019.
GROUP PERFORMANCE
* The change in gross revenue of +3.5% (+EUR443 million) as of 30 September
2021 compared to the first nine months 2020 breaks down into:
* Organic change of +9.8% (+EUR1,236 million).
* A currency effect of -0.5% (-EUR58 million), resulting from the appreciation
of the euro against the US dollar (-EUR93 million) and the Brazilian real
(-EUR9 million), partially offset by the appreciation of the Australian dollar
(+EUR43 million) and the British pound (+EUR18 million) against the euro.
* A scope effect of -5.8% (-EUR735 million), including the impact of the
disposals of the recycling and recovery activities in Sweden, finalized in
November 2020, and of OSIS and the recycling and recovery activities in four
continental European countries, finalized on 18 May and 31 May 2021,
respectively.
* EBITDA amounted to EUR2,452 million in the first nine months 2021, with
organic growth of +29.0% and +23.4% in constant currencies compared to the
first nine months 2020. The impact of exchange rates was unfavorable in the
amount of -EUR4 million. The EBITDA margin, at 18.7% of revenues, recorded an
increase of +3.5 points compared to 30 September 2020 and +1.0 point compared
to 30 September 2019.
* EBIT was EUR1,253 million in the first nine months 2021, against EUR413
million in the first nine months 2020. This amount includes the accounting
impact of IFRS 5 (non-amortization of assets held for sale(1)) of EUR44 million
in the first nine months 2021. Organic growth, which excludes this impact, was
+203.5%. The Group recognized EUR281 million in costs and provisions related to
the economic situation, including the pandemic, in the first half of 2020.
Exchange rate effects were positive in the amount of +EUR3 million.
* The improvement in the Group's operating profitability was driven, in
particular, by the performance of the WTS activity and by the recycling and
recovery activity in Europe. The substantial reduction in general and
administrative costs, resulting from measures taken since 2019 as part of the
performance plan, is also contributing to the acceleration of organic growth in
EBITDA and EBIT.
* Net debt stood at EUR8,761 million as at 30 September 2021, down by EUR1,530
million compared to 30 September 2020. This change includes the impact of the
proceeds from disposals (-EUR1,361 million) and the capital increase relating
to the employee shareholding offer (-EUR160 million), partially offset by the
decision to terminate the securitization program (+EUR291 million) and the
payment of the dividend for the 2020 financial year (+EUR453 million). Cash
generation continues to be robust, driven by the strong improvement in the
Group's profitability and the excellent handling of working capital
requirements.
* The debt ratio was 2.7 times EBITDA over the 12-month rolling period.
(1) Recycling and Recovery activities (excluding plastics and hazardous waste
recycling) in the Netherlands, Luxembourg, Germany, and Poland, and OSIS -
divestments completed in May 2021.
OUTLOOK 2021
? Revenues of more than EUR16 billion with a return to organic growth
? EBIT now expected to be in the upper half of the target range established
at the start of the year (EUR1.4 to EUR1.6 billion), i.e. above EUR1.5
billion
? Recurring EPS of EUR0.80 to EUR0.85
? Recurring free cash flow of more than EUR500 million
APPENDICES
Details of organic growth for Q3 and 9M 2021
In EURm Q3 202 Q3 2021 Variation
gross organic Excl. FX
WATER 1,735 1,733 (0.1)% +1.5% (0.3)%
Europe 952 991 +4.1% +4.4% +4.0%
AMECAI 240 235 (2.0)% (4.1)% (4.1)%
Asia Pacific 129 104 (19.9)% (21.8)% (21.8)%
Americas 414 404 (2.5)% +5.6% (1.4)%
R&R 1,859 1,733 (6.8)% +15.5% (7.6)%
Europe 1,558 1,390 (10.8)% +16.1% (11.6)%
AMECAI 17 16 (6.6)% (6.1)% (6.1)%
Asia Pacific 270 315 +16.5% +15.1% +15.1%
Americas 13 13 (6.3)% (10.0)% (10.0)%
ETS 878 899 +2.4% +1.4% +2.1%
Europe 357 374 +4.8% +3.5% +4.8%
AMECAI 36 38 +5.3% +5.2% +5.2%
Asia Pacific 129 147 +14.4% +13.2% +14.1%
Americas 356 339 (4.7)% (5.3)% (5.3)%
Intercos (77) (70) (8.7)% (8.7)% (8.7)%
TOTAL 4,395 4,294 (2.3)% +7.6% (2.8)%
9M 2020 9M 2021 gross Variation
organic Excl. FX
4,956 5,017 +1.2% +3.2% +1.8%
2,706 2,823 +4.3% +4.7% +4.3%
689 720 +4.6% +0.7% +4.5%
323 309 (4.2)% (4.9)% (4.9)%
1,238 1,163 (6.0)% +3.4% (3.2)%
5,311 5,646 +6.3% +18.4% +5.6%
4,415 4,651 +5.3% +20.4% +5.1%
57 55 (4.1)% (0.6)% (0.6)%
802 897 +11.8% +8.6% +8.6%
37 44 +18.5% +17.4% +17.4%
2,521 2,567 +1.8% +4.1% +4.4%
991 1,077 +8.6% +7.9% +8.6%
112 102 (9.0)% (9.0)% (9.0)%
359 416 +15.8% +15.3% +15.7%
1,058 972 (8.1)% (1.9)% (1.9)%
(225) (224) (0.4)% (0.4)% (0.4)%
12,562 13,006 +3.5% +9.8% +4.0%
The definition and calculation of the alternative performance indicators (APIs)
presented in this press release are published in full in the Group's universal
registration document. It is available on the Group's website:
https://www.suez.com/fr/finance/informations-financieres
CONTACTS
Media
Isabelle Herrier Naufle
isabelle.herrier.naufle@suez.com
+33 (0)6 83 54 89 62
Analysts / Investors
Cécile Combeau | Baptiste Fournier | Julien Minot
+33 1 58 81 55 71 | 54 85 | 37 09
Disclaimer
This press release contains unaudited financial data. The aggregates presented
are those normally used and communicated on markets by SUEZ.
This press release contains estimates and/or forward-looking statements and
information. These statements include financial projections, synergies,
estimates and their underlying assumptions, statements regarding plans,
expectations and objectives with respect to future operations, products and
services, and statements regarding future performance. Such statements do not
constitute forecasts regarding SUEZ's results o r any other performance
indicator, but rather trends or targets, as the case may be. No guarantee can
be given as to the achievement of such forward-looking statements and
information. Investors and holders of SUEZ securities are cautioned that
forward-looking information and statements are subject to various risks and
uncertainties, which are difficult to predict and generally beyond the control
of SUEZ, and that such risks and uncertainties may entail results and
developments that differ materially from those stated or implied in
forward-looking information and statements. These risks and uncertainties
include, but are not limited to, those discussed or identified in the public
documents filed with the Autorité des Marchés Financiers (AMF), the French
Financial Markets Authority. Investors and holders of SUEZ securities should
consider that the occurrence of some or all of these risks may have a material
adverse effect on SUEZ. SUEZ is under no obligation and does not undertake to
provide updates of these forward-looking statements and information to reflect
events that occur or circumstances that arise after the date of this document.
More comprehensive information about SUEZ may be obtained on its Internet
website (www.suez.com). This document does not constitute an offer to sell, or
a solicitation of an offer to buy SUEZ securities in any jurisdiction.
About SUEZ:
Since the end of the 19th century, SUEZ has built expertise aimed at helping
people to constantly improve their quality of life by protecting their health
and supporting economic growth. With an active presence on five continents,
SUEZ and its 90,000 employees strive to preserve our environment's natural
capital: water, soil, and air. SUEZ provides innovative and resilient solutions
in water management, waste recovery, site remediation and air treatment,
optimizing municipalities' and industries' resource management through "smart"
cities and improving their environmental and economic performance. The Group
delivers sanitation services to 64 million people and produces 7.1 billion m3
of drinking water. SUEZ is also a contributor to economic growth, with more
than 200,000 jobs created directly and indirectly on an annual basis, and a
provider of new resources, with 4.2 million tons of secondary raw materials
produced. By 2030, the Group is targeting 100% sustainable solutions, with a
positive impact on our environment, health and climate. SUEZ generated total
revenue of EUR17.2 billion in 2020.
Find out more about the SUEZ Group on our website and social media
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