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Suez reports excellent Q1 results, but revenues of Water activities decrease

  • Suez reports excellent Q1 results, but revenues of Water activities decrease
Schneider Electric
Idrica

Themes

Suez has released positive results for the first quarter of 2021, with revenues of 4.3 billion, a 2.7% increase in gross revenue (5.9% increase in organic growth year-on-year).

EBIDTA rose 13.5% (17% organic) to €768 M, as a result of the growth in revenues, with the Group’s selective growth strategy, implementation of its performance plan, and mitigation measures to respond to the COVID-19 pandemic. Meanwhile, EBIT rose 47% (39% organic) to €340 M.

“The first quarter results have been excellent, not just in comparison to 2020 but also compared to 2019. The Group recorded solid organic growth, strong improvement in profitability, and very good cash generation” commented CEO Bertrand Camus.

The strongest performing segment was Recycling and Recovery, with 8.4% growth (11.8% organic) reaching revenues of €1,993 M.

On the other hand, the revenues of Water activities decreased by 1.8% (+0.3% organic), with €1,581 M:

  • In Europe the Water segment showed organic revenue growth of 1,2%, an increase of €10 M. The water volume sold went up by 0.3% in France, while it fell by 1.6% in Spain, due to the impact of the pandemic on tourist activity.
  • In the Americas the Group recorded a decline in revenues of €15M (3.4% organic decline). Worth noting is Chile where water volume sales went down by 4.8% due to pandemic restrictions. In the United States regulated water sector, volume sales decreased by 1.2%; the decline is mostly because of unfavourable weather conditions.
  • Revenues went up in the Asia-Pacific region by €12 M (13.8% organic growth), due mainly to more water sold in mainland China.
  • Finally, in the AMECAI region revenues went down by €3 M (1.4% organic decline).

Suez confirms its 2021 objectives and outlook, and will propose an ordinary dividend of €0.65 per share at the Annual General Meeting of shareholders to be held on June 22.

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