Veolia has announced robust financial results for the first half of 2024, reflecting the strength of its value creation model and the successful launch of its GreenUp strategic program. The company reported solid revenue growth of 4.4%, driven by a 6.9% increase in its Booster activities and a 3.4% rise in Stronghold activities.
The group's operational performance was notable, with EBITDA rising by 5.7%, supported by revenue growth, operational efficiency, and synergies that exceeded annual targets. Veolia's current net income increased by 15.2% to €731 million.
Veolia's dynamic capital allocation policy has continued to contribute to value creation while maintaining a solid balance sheet. Over €1 billion of non-strategic asset divestments were signed in the first half, alongside several targeted acquisitions in priority activities.
The company has fully confirmed its objectives for 2024 and the GreenUp 2024-2027 program. Veolia has also become the first company to receive double validation by the Science Based Targets initiative (SBTi) and Moody's for its climate trajectory, aligning with the 1.5°C ambition.
Key financial highlights include:
- Revenues of €22,141 million, marking a 4.4% increase, driven by strong growth in Water and Waste activities, both up 6.4%.
- Revenue growth in Energy by 1.4%, maintaining high profitability levels.
- Total Group revenues, accounting for lower energy prices, showed a slight increase of 0.4%.
- EBITDA of €3,266 million, representing a 5.7% organic growth, within the guidance range of 5% to 6%.
- Efficiency gains of €194 million towards an annual target of €350 million, and €71 million in synergies, ahead of the annual target.
- Current EBIT rose by 6.6% to €1,730 million.
- Current net income - Group Share increased by 15.2% to €731 million, on track to exceed the annual target of €1.5 billion. Net income - Group Share was up by 24.6%.
- Net financial debt remains well-controlled, with a leverage ratio expected to be below 3x by the end of 2024.
Estelle Brachlianoff, CEO of Veolia, commented on the results: "At mid-year, Veolia posted a very solid performance, perfectly aligned with the priorities of the GreenUp Strategic Program that we have recently launched. EBITDA was up +5.7%1 and current net income up +15.2%2, in line with our expectations. These excellent results reflect our commercial dynamism and operational excellence, as well as the vitality of demand, which translates in the sound growth of our Water and Waste activities. The unique combination of water/energy/waste activities which enables us to offer efficient and innovative solutions to our customers has once again been key to our commercial wins, as illustrated by the examples of Saint-Fons in France or New Orleans in the United States, two major wastewater treatment plants contracts where our know-how in energy was key."
She added: "During this first-half, we have also pursued the transformation of our portfolio of activities according to our strategic plan, by divesting non-strategic assets for a total amount of more than 1 billion euros, while simultaneously reinvesting in new acquisitions that create value in our priority activities. We expect these positive trends to continue in the second-half, which enables us to fully confirm all our targets for the year.”
