6 May 2021 by Robyn White

Veolia sees Q1 fall in UK revenue

Veolia’s UK revenues fell by 6.2% in the first quarter of 2021, when compared with the same period last year, despite global revenues growing by 4%.

In a report published on 5 May, the waste giant said global revenues in Q1  of 2021— January to March— stands at €6.807 billion (£5.890 billion) compared to €6.675 billion (£5.776 billion) in Q1 2020. The company put this down to “good commercial momentum”.

Veolia reported strong global revenue growth despite a fall in the UK

For the UK and Ireland, the report showed a 6.2% revenue decline, put down to continued low commercial and industrial waste volumes due to lockdown.

Veolia also reported an uplift in global recycled material prices, mainly in the paper markets, boosted revenues by €80 million (£69.4 million) after a “strong decrease” in early 2020.

Coupled with higher energy prices, this contributed to a 1.6% increase of revenue.

‘Flying start’

Antoine Frérot, Veolia’s chairman and CEO commented: “Veolia is off to a flying start in 2021. In a global context that remains difficult, Veolia has announced an outstanding pace of growth of both revenue and profits, notably thanks to our diversified client mix, our treatment solutions for new pollutants and our international footprint.

“We are ahead of our 2021 objectives and I can confirm that 2021 will be a very good year”

Antoine Frérot, Veolia’s chairman and CEO

“We are therefore ahead of our 2021 objectives and I can confirm that 2021 will be a very good year in terms of growth and profits. This excellent performance comes at a historical moment for our Group. On April 11th, we signed an agreement to purchase Suez Group and to create the undisputed world champion of ecological transformation.”

Suez

The company also referenced its takeover of rivals Suez.

Veolia and Suez have concluded a combination agreement by which Veolia will launch a tender offer on Suez Group at €20.5 per share coupon included, in order to create the “world champion of the ecological transformation”.

Veolia says it will “integrate the majority of Suez activities outside France and will in particular reinforce its geographical footprint in Spain, the US, Latin America, Australia and the UK.”

The new Group will generate an annual revenue of €37 billion (£32.1 billion) with 230,000 employees.

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