Suez integration and higher recyclate sales help Veolia to higher revenue in first 9 months of the year

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Veolia's cardboard recycling service

Veolia’s purchase of many of the assets of Suez has helped it raise revenues to €30.7 billion (£26.93 billion) for the first nine months of its financial year for 2022.

Up to 30 September 2022, Veolia’s revenue was up 49.1% at constant foreign exchange compared to the first nine months of 2021. The acquisition of Suez contributed €7.13 billion (£6.26 billion) of this.

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Pre-tax profits were up to €4.5 billion (£3.95 billion), increasing by 5.2% on the same period last year.

Veolia reported that it benefitted from an increase of €288 million (£252.68 million) from higher prices for recycled materials, with this coming mostly from recycled paper sales in France, Germany and the UK.

In the UK and Ireland, Veolia reported revenue growth at constant scope and foreign exchange of 10.3% driven by the favourable impact of recycled materials prices for paper and plastics, the increase of electricity prices, the good tariff indexation of PFIs and the strong performance of incinerators.

Veolia chief executive Estelle Brachlianoff said: “After an excellent first half of the year, showing both very strong revenue and EBITDA growth, Veolia continued in Q3 with a similar trajectory with continued very strong growth of all its activities, water, waste and energy.

“Our tariff indexation business models with municipal clients as well as our strict pricing discipline with industrial clients have enabled us to absorb cost inflation and deliver strong earnings growth.

“This very good performance is also the result of an integration of Suez ahead of schedule. The implementation of the synergies is a good illustration : with 98 million euros delivered in 9 months, we have already reached our annual target. The speed and fluidity with which the teams of Veolia and Suez have come together and are working together is a great satisfaction. I want to thank all of them for the energy and enthusiasm they show every day in the service of our great ambition to become the world leader of the ecological transformation.

“These very good results allow us to fully confirm all our 2022 objectives and to be very well positioned for another year of strong growth in 2023.”