Suez today (February 26) credited the Greater Manchester waste contract for helping to bolster its commercial performance in 2019.
The waste management, water and energy company posted ‘solid’ annual results for the calendar year showing that all its targets for the year were achieved, while progress was also made on delivering its ‘Shaping Suez 2030’ strategy.
Suez has reported good commercial and operational performance in 2019
Globally Suez made revenues of €18,015 million (£15,139 million), up €684 million (£575m) compared to 2018. All its divisions contributed positively to this.
The company reported EBIT [earnings before interest and taxes] of €1,408 million (£1,183m), up 4.3% from 2018.
In the Recycling and Recovery Europe division, the company reported organic growth in revenue of €6,471 million (£5438m), up 4.9%. Volumes of treated waste were up 1.5% compared to the 2018 financial year.
In the UK and Scandinavia, the company recorded organic growth of 5.7% or €63 million (£53 million). This was boosted by the start of the Greater Manchester Area Waste Management Contract from June 1, 2019.
Bertrand Camus, SUEZ chief executive, said: “SUEZ has posted solid 2019 results: all the targets set were met or exceeded, with a good growth rate in the fourth quarter.”
He added: “Each of our activities contributed to this good commercial and operational performance. In recycling and recovery, we won major contracts, such as Greater Manchester’s waste management, and began construction of a plastic recycling plant in Thailand.”
Commenting on the company’s profitability, he said: “Our commercial successes have enabled us to deliver organic growth above our expectations, at 3.6%. Our profitability was solid, with 4.3% organic growth in EBIT, driven by pricing and by the efforts of our teams to improve our operational performance.”
‘Landmark’
Suez explained that 2019 had been a ‘landmark year’ with a number of commercial and operational successes.
In the UK, it referenced the winning of two major contracts.
In Greater Manchester the company said its contract would serve 2.3 million inhabitants and would generate cumulated revenue of around €780 million (£655 million) over a 7-year period, with the possibility of a three and then five year extension (see letsrecycle.com story).
In addition, the company referenced its contract with Somerset county council to roll out a new household waste recycling service to 250,000 households (see letsrecycle.com story).
“This contract is worth around €243m (£202 million) cumulated for an initial 10-year period, starting June 2020”, the company said.
Strategy
Alongside the release of the results, Suez confirmed that its Shaping Suez 2030 strategic plan was progressing well.
The plan was launched in October 2019 In October 2019 and aims, within 10 years, to position SUEZ as ‘the world leader in environmental services and increase value creation for all stakeholders, with material results as soon as 2021.’
Mr Camus said: “The past year marks, above all, the beginning of SUEZ’s transformation with the launch of our strategic plan, Shaping SUEZ 2030. A new management structure adapted to our ambition has been put in place.”
He added: “We are fully focused on the execution and delivery of our strategy with the ambition to make SUEZ the global leader in environmental services.”
The post UK growth boosts Suez’s annual results appeared first on letsrecycle.com.
Source: letsrecycle.com Waste Managment
