SUEZ exceeds its second-half 2020 guidance
> Profitability in second-half 2020 driven by the rigorous execution of the performance plan:
- EBIT: c. €670m to €680m versus initial guidance of €600m to €650m
- EBITDA: c.€1,600m
> Net debt at c.€9,750m1, a sharp decline compared with December 31, 2019 and June 30, 2020 thanks to structural improvement of cash generation
N.B.: All the financial items presented in this press release are preliminary and unaudited.
Bertrand Camus, Chief Executive Officer of SUEZ, commented:
Driven by the successful deployment of our SUEZ 2030 strategic plan, our preliminary second-half results exceed the guidance we set on July 29 despite an environment full of uncertainties. We maintained a strong commercial momentum in France and internationally with significant successes in Asia-Pacific and in the Middle East. We also made important acquisitions to strengthen SUEZ's position in activities and geographical areas with high growth potential: China, water in Spain and the United States, industrial waste in the Middle East and technology. Last, the transformation carried out by the Group translate into resilient margins and a significant and structural improvement of cash generation. This performance is fully supportive to SUEZ's financial trajectory for 2021 and 2022. I would like to thank all our employees who are fully committed in their mission, in a fast-changing world. Our second-half outperformance again illustrates the relevance of our strategic choices enabling value creation for our shareholders and all our stakeholders.
Bertrand Camus , Chief Executive Officer of SUEZ
SUEZ’s Audit Committee met on January 23, 2021 and reviewed the preliminary and unaudited financial items. These items show revenue and EBIT that exceed the guidance for second-half 2020.
This reflects a strong commercial dynamic in France and Internationally and the effective deployment of the Group’s asset rotation policy: by strengthening its positions in priority and high-potential geographical areas, it is supporting its future growth.
The operational performance improvement actions deployed as part of the SUEZ 2030 strategic plan continue to bear fruit, slightly faster and greater than the trajectory initially planned.
The new restrictive measures to contain the COVID-19 epidemic, which have been implemented in the Group’s various regions, have not been likely to structurally disrupt the Group’s operations.
As a result, the Group expects results above second-half 2020 guidance:
Revenue is more resilient and the organic variation is expected to be around -1%, exceeding the guidance of -4% to -2% previously released;
- EBIT is expected at €670m to 680m, above the €600m to €650m range previously released;
- EBITDA is expected to stand at c.€1,600m;
- Net debt is expected to come out at c.€9,750m1, a sharp decline compared with December 31, 2019 and June 30, 2020 thanks to structurally improved cash generation.
This performance is fully supportive to SUEZ's financial trajectory for 2021 and 2022
SUEZ’s audited results for the fully-year 2020 will be presented on February 25, 2021, as set out by our financial calendar.
1 Including c.€125m of debt relating to businesses whose disposal was announced in 2020 and is expected to be finalised in H1 2021