First-quarter 2018
Results fully in line with annual targets
European economic environment continues to improve
WT&S integration accelerates with strong commercial momentum
First-quarter 2018 results1:
| in € m | March 31, 2017 |
March 31, 2018 |
Organic change | Gross change | Change at constant exchange rates | FX change |
|---|---|---|---|---|---|---|
| Revenue | 3,721 |
4,058 | +1.7% | +9.1% | +13.8% | -4.3% |
| EBITDA | 614 | 635 | +2.6% | +3.4% | +8.8% | -4.8% |
|
EBITDA / revenue |
16,5% | 15,7% | ||||
| EBIT | 281 | 289 | +5.5% | +2.8% | +10.2% | -6.5% |
| EBIT / revenue | 7.5% | 7.1% |
In first-quarter 2018, SUEZ posted €4,058m revenue, up 13.9% at constant exchange rates. Momentum in the International division improved with 3.0% growth at constant exchange rates. Recycling and Recovery Europe reported revenue growth of 1.3% at constant exchange rates. This division was bolstered by the sharp improvement in the volume of waste treated (+3.6%) but was negatively affected by the adverse trend in paper and cardboard prices following China’s decision to restrict imports. The Water Europe division grew by 1.4% at constant exchange rates, driven by higher water volumes sold in Latin America which offset the lack of inflation in Europe. Water Technologies & Solutions (WT&S) revenue stood at $611m3, up 4%4.
EBITDA at end-March 2018 stood at €635m, up 8.8% at constant exchange rates. EBIT rose 10.2% at constant exchange rates, to reach €289m.
Group net financial debt was €8.8bn5 versus €8.5bn at end-2017, or 3.3 times EBITDA2.
Commenting on the first-quarter 2018 results, Chief Executive Officer Jean-Louis Chaussade said:
Growth has accelerated at SUEZ in both revenue and profitability. First-quarter financial results are therefore fully in line with our annual targets, which we now reiterate. Our efforts to integrate and extract synergies within WT&S are already yielding results and confirm the expected value creation path. The operational trends for this division are also well on track. The significant 30% growth in the backlog during the quarter bolsters the business’s growth potential. Lastly, SUEZ is fully committed to implementing the action plan presented at the start of the year, which is also based on accelerating the Group’s transformation, strengthening profitable growth in France, growing the business internationally and everywhere, and expanding the savings measures.
Jean-Louis Chaussade , Chief Executive Officer of SUEZ