First-quarter 2017 results
Encouraging operating trends
Growing earnings
Acquisition of GE water, a major development step for SUEZ
Q1 2017 results1:
- Revenue: €3,721m, up +4.7%
- EBIT: €281m, up +10.8%
- Net financial debt: €8,125m, net financial debt / EBITDA2 ratio of 3.0x
| in € m | March 31, 2016 | March 31, 2017 | Organic change | Gross change | Change at constant exchange rates | Exchange rate change |
|---|---|---|---|---|---|---|
| Revenue | 3,555 |
3,721 |
+3,8% |
+4,7% |
+3,9% | +0,8% |
|
EBITDA |
574 16.1% |
614 16.5% |
+2.1% |
+7.1% |
+4.2% |
+2.9% |
| EBIT EBIT / revenue |
253 7.1% |
281 7.5% |
2.6% | +10.8% | +5.7% | +5.1% |
- In first-quarter 2017, SUEZ increased revenue by +4.7% to €3,721m, out of which +3.8% on an organic basis. The Recycling and Recovery Europe division posted substantial organic growth in revenue of +7.4%, mainly attributable to the increase in commodity prices and higher treated waste volumes. The International division continued to increase revenue with +3.3% organic growth. In the Water Europe division, organic growth was up +1.1%, with the dynamism in Latin America offsetting Europe's deflationary effect.
- EBITDA at end-March stood at €614m, up +7.1%, and +2.1% on an organic basis. EBIT rose +10.8%, and +2.6% on an organic basis, and reached €281m. The EBITDA and EBIT to revenue margins improved year-on-year.
- Group net financial debt was €8.1bn compared with €8.0bn at end-2016, or 3.0 times EBITDA.
Commenting on the first-quarter 2017 results, Chief Executive Officer Jean-Louis Chaussade said:
Our business in the first quarter is encouraging. Revenue growth posted by the Recycling & Recovery Europe division was particularly strong, fueled by the rebound in raw materials prices and the increase in treated volumes. The International division continued to show growth after a satisfactory year in 2016. Revenue in the Water Europe division edged up slightly, helped by resilient volumes sold in all regions, despite flat inflation rates in both France and Spain. Hence, organic growth of earnings was solid. In this context, we are confident that we will achieve our 2017 targets. At the same time, Q1 2017 saw a major milestone for the Group with the signature of an agreement with GE to acquire the US company, GE Water. This deal strengthens SUEZ's global leadership in industrial water services, a growing and strategically important market for the Group. Moreover, it will also strengthen the Group’s international footprint, especially in the United States. The transaction is expected to be closed as planned during third-quarter 2017
Jean-Louis Chaussade , Chief Executive Officer of SUEZ
1 Excluding IFRIC 21
2 The ratio of net financial debt/EBITDA calculated over a rolling 12 month period