The Greater Manchester Combined Authority (GMCA) waste contracts have helped to boost Suez’s financial results for the first nine months of 2019.
The global waste management company today (October 30) posted its latest figures showing a “strong performance” during the period to September.
Globally Suez made revenue of €13,127 million (£11,329m) with each division of the organisation contributing positively. €1,016 million (£876.81m) of earnings were made before interest and tax, resulting in organic growth of 4.2%. Suez described these figures as “notably driven by Recycling & Recovery and International divisions”.
The United Kingdom and Scandinavia region recorded organic growth of 7%, equivalent to a gain of €58 million (£50.05m). Suez said these figures particularly benefitted from the start of the Greater Manchester Area Waste Management contract on 1 June.
Based on these nine month results, revenue expectations for the full year have been upgraded towards the upper end of the organic growth target range.
Bertrand Camus, chief executive of Suez, said: “In the first nine months of 2019, SUEZ posted a strong performance. In particular, our solid organic revenue growth enables us to improve our full year revenue expectations which we now expect towards the upper end of our organic growth target range.
“We have improved profitability and lowered leverage. All our divisions contributed positively to our expansion, allowing us also to confirm all our other 2019 objectives,” he added.
Suez also confirmed that it has met its other 2019 targets and has reduced its net debt to €10,600 million (£9147.80m) on a constant accounting basis. The water and waste management company operates on five continents and its UK arm, Suez Recycling and Recovery UK, is one of the largest industry players in the UK.
The Greater Manchester contracts which Suez cite as a reason for their success involve the management of 1.1 million tonnes of municipal waste per year from over 1 million households across nine districts. (see Letsrecycle.com story)
Under the contracts, Suez operate 41 facilities over 24 sites, including four mechanical treatment and Rail Head reception facilities, 20 household waste recycling centres, eight transfer loading stations, a thermal recovery plant and a materials recovery facility. The contract runs for seven years, with options to extend for further.
Shaping Suez 2030
Alongside the release of the nine month results, Suez also confirmed that its Shaping Suez 2030 strategic plan has been launched and is now underway.
Mr Camus said: “On the 2nd of October, we presented “Shaping SUEZ 2030”, the new strategic roadmap for SUEZ designed to radically transform the Group.
“Driving selectivity in growth, simplicity in our way of working and a renewed engagement grounded on new values and culture, the plan enhances value creation for all stakeholders over 4 years, with material results as soon as 2021.”