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:

With organic revenue growth of 3.7% and organic EBIT growth of 3.3% in the first quarter, we are off to a strong start in 2019. At each division, the strong mobilization of the teams is producing numerous commercial successes and bolstering business activity. For example, we were appointed preferred bidder by the City of Manchester for the treatment of waste of 2.3 million inhabitants, or one million tons of waste a year. In China, SUEZ has won three contracts in water management and recovery for a total of nearly €250m. In addition, I am delighted with the definitive resolution of arbitration with the Argentinian government in respect of the Buenos Aires water and sanitation concession. Overall, the performance achieved in the first quarter is in line with our forecast trajectory and we are confirming our guidance for 2019.

Jean-Louis Chaussade , Chief Executive Officer of SUEZ

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.
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Contacts

Press: Isabelle Herrier Naufle
isabelle.herrier.naufle@suez.com +33 1 58 81 55 71
Press: Ophélie Godard
ophelie.godard@suez.com +33 1 58 81 54 73
Analysts / Investors
+33 1 58 81 24 05
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