Global resources firm Veolia has reported ‘strong’ growth in earnings across its waste business for the first half of 2019, despite a continued impact from falling recovered paper prices.
The Paris-headquartered company published six-month financial results today (1 August), in which it highlighted a growth in revenue across its global operations, which include waste, water and energy, to €13.3 billion. Veolia’s pre tax earnings for the year to date stand at €857 million, up by around 5.7% compared to the previous year.
Veolia has reported growth in its waste business during the first half of 2019
On the waste side of its business, Veolia said it had exhibited strong growth of 7.2% for the first half of the year with volumes up 1.9% and prices up 2.5%.
However, the company notes that “negative recyclate prices” in France, the United Kingdom and Germany had impacted its earnings, albeit less severely than during the preceding 12 months.
This was primarily driven by a 5% fall in paper prices in Europe, but was partially offset by higher prices for other recyclates, including plastic – which had risen by 17%.
UK and Ireland
In the UK and Ireland, Veolia reported that its revenue had increased by 4.3% to €1.13 billion, thanks to an increase in waste volumes, which rose by 2%. The company also reported an “excellent incinerator utilization rate (93%)” and higher electricity selling prices. Recyclate prices had only a “limited impact” on the UK business, it said.
“Growth of our new businesses has been very strong, particularly hazardous waste, up 13%, as well as plastic recycling, up 30%.”
In the rest of the world, the company reported a 23% growth in revenue in South America and a growth in revenue of 10% in its Asian operations, driven by its hazardous waste incineration and plastic recycling operations in the region.
Antoine Frérot, Veolia’s chairman and chief executive, said: “The first half of 2019 activity and results are fully in line with our sustained and profitable growth trajectory. Veolia has achieved strong revenue growth in all of its geographies, an evidence of the pertinence and coherence of our choices, of our capacity to capture the best opportunities for profitable growth.
“The commercial momentum has remained very solid. “Growth of our new businesses has been very strong, particularly hazardous waste, up 13%, as well as plastic recycling, up 30%.”
The half-year results put the company on course for a “profitable and sustainable growth” in 2019, Mr Frérot added.
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Source: letsrecycle.com Waste Managment
