Finance
First quarter 2019 results
A SOLID FIRST-QUARTER 2019
DEFINITIVE RESOLUTION OF ARBITRATION WITH ARGENTINA ON BUENOS AIRES
- Brisk business activity: organic revenue growth of 3.7% to €4,210m
- Strong sales momentum across all divisions
- EBIT up 3.3% in organic terms to €293m, in line with the expected trajectory
- 2019 outlook confirmed
in millions of euros |
March 31, 20181 |
March 31, 20192 |
Gross change | Organic change | FX change | Change at constant FX3 |
---|---|---|---|---|---|---|
Revenue | 4,055 |
4,210 | +3.8% |
+3.7% | +0.9% |
+3.0% |
EBITDA EBITDA / revenue |
633 15.6% |
709 16.9% |
+12.1%
|
-0.8%
|
+0.6%
|
-0.5%
|
EBIT EBIT / revenue |
278 6.9% |
293 7.0% |
+5.3%
|
+3.3%
|
+0.3%
|
+3.9%
|
in millions of euro |
Dec 31, 2018 |
Mar. 31, 2019 ex. IFRS16 |
Mar. 31, 2019 | Change ex. IFRS16 |
---|---|---|---|---|
Net debt |
8,954 |
9,031 | 10,367 |
+0.9% |
Net debt / EBITDA |
3.23x | 3.26x |
3.37x |
- SUEZ reported revenue of €4,210m in first-quarter 2019, up 3.7% in organic terms. Group growth continues to be driven by increased business activity for the Water Technologies and Solutions (WTS) and International divisions, which posted organic revenue growth of 8.5% and 4.5%, respectively. In a favorable tariff environment, the Recycling & Recovery Europe division posted solid organic revenue growth of 4.7%. Volumes treated decreased slightly, the result of continued greater contract selectivity as to paper and certain plastics. Waste volumes in Europe are nevertheless expected to rise 1.5% in 2019. Water Europe business was stable as expected.
- EBIT stood at €293m at March 31, 2019, up 3.3% in organic terms.
- On a like-for-like accounting basis, debt remained practically stable from December 31st at €9,031m compared with €8,954m (+0.9%), and the debt ratio came out at 3.26x EBITDA on a 12-month rolling basis. This stability factors in the following three key items: seasonal growth in the WCR for €337m, an unfavorable currency effect for €124m and net proceeds from the disposal of a 20% stake in SUEZ Water Resources Inc. (USA) for €524m.
- The Argentine government and SUEZ have concluded and implemented a transactional settlement agreement on Aguas Argentinas. For the SUEZ group, the cash amount received in April is €220m.
Commenting on the first-quarter 2019 results, Chief Executive Officer Jean-Louis Chaussade said:
1 Figures at end-March 2018 include the impact of the allocation of the acquisition price of GE Water, for -€3m, -€2m and -€10m on revenue, EBITDA and EBIT, respectively.
2 Data at end-March 2019 include the impact of the first application of IFRS 16, for +€76m and +€3m on EBITDA and EBIT, respectively.
3 Change at constant FX in this press release exclude the impact of the initial application of IFRS 16.
2 Data at end-March 2019 include the impact of the first application of IFRS 16, for +€76m and +€3m on EBITDA and EBIT, respectively.
3 Change at constant FX in this press release exclude the impact of the initial application of IFRS 16.