Recycling company SUEZ has released its first-half 2018 results which shows that its paper and cardboard prices decreased by €14m from 2017 figures due to China’s decision to reduce its imports.
However, its Recycling and Recovery Europe (RRE) division reported revenue of €3,118m, an increase of +3.6% and which SUEZ said reflects various effects such as volumes treated increasing by +3.2% due to the Grand Paris work and an improvement in the price of services sold.
The RRE division reported earnings before interest and tax (EBIT) of €141m, representing organic growth of €5m (+3.6%), however figures were impacted by a sharp decrease in paper and cardboard of €14m, and by the average 24% increase in oil prices which hurt its collection activities by €7m.
By geographic region, the organic change in revenue was -3.5% in the United Kingdom due to an adverse construction effect unrelated to the volume trend, while other countries such as Sweden increase by 6.7%.
In connection with the recycling and recovery activities, it has launched Organix®, a marketplace for organic materials.
A first in France, this platform connects producers of organic waste with users who operate biogas plants and transform the waste into energy.
It is hoped that waste recovery and the production of new resources at the local level will benefit the circular economy.
Overall, the Group’s revenue for the first-half of 2018 was €8,351m, up 15%, and its EBIT increased by 12% to €607m.
SUEZ chief executive Jean-Louis Chaussade said: “The year has started off well. Growth was also robust in the International and the Recycling & Recovery Europe divisions, with a strong commercial performance in all geographies. The Group’s profitability is improving, driven by growth in revenue and by the first impacts of our action plan on operational performance.
“The results for the first half of the year therefore give us a great deal of confidence in our ability to meet our full-year targets.”