In This Article:
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Revenue: Increased by 5% excluding energy prices to EUR44.7 billion.
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EBITDA: Grew by 5.8% to EUR6,788 million, with a margin increase of 80 basis points to 15.2%.
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Current Net Income: Rose by 14.6% to EUR1,530 million.
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Current EPS: Increased by 12.4% to EUR2.13.
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Free Cash Flow: Improved to EUR1,156 million.
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Net Financial Debt: Reached EUR17.8 billion with a leverage ratio of 2.63 times.
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Dividend: Proposed increase by 12% to EUR1.40.
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Water Technologies Revenue: Increased by 7% to EUR4,973 million.
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Hazardous Waste Revenue: Increased by 7.1% to EUR4,276 million.
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Water Operations Revenue: Increased by 5.1% to EUR13,060 million.
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Solid Waste Revenue: Increased by 6.2% to over EUR11 billion.
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ROCE: Reached 8.8%, a historical high for Veolia.
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Synergies: Achieved EUR120 million in 2024, with a new target of EUR530 million by the end of 2025.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Veolia Environnement SA (VEOEF) achieved or exceeded all targets for 2024, demonstrating strong performance despite a challenging environment.
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Revenue grew by 5% excluding energy prices, with booster activities like water technologies, hazardous waste, and bioenergy growing by 6.6%.
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EBITDA increased by 5.8% to EUR 6,788 million, with a margin improvement of 80 basis points to 15.2%.
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Current net income grew by 14.6% to EUR 1,530 million, a record high for the group, and current EPS increased by 12.4% to EUR 2.13.
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The company ended the year with a lower debt than targeted and a comfortable leverage ratio of 2.63 times, better than expectations.
Negative Points
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The macroeconomic and political environment in 2024 was challenging, particularly in France and Europe, affecting operations.
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External factors such as commodity prices and weather had a negative impact, contributing to a minus 2% effect on EBITDA growth.
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Energy revenue decreased by 10.7% due to lower energy prices and mild weather, impacting overall revenue growth.
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The company faces potential challenges in maintaining efficiency gains due to expected lower inflation in 2025.
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There is uncertainty regarding the impact of geopolitical and macroeconomic factors on future performance, which could affect the company's ability to meet long-term targets.
Q & A Highlights
Q: Could the share buyback program indicate a shift towards more flexible capital allocation, potentially reallocating CapEx to buybacks beyond offsetting the employee share plan? A: Estelle Brachlianoff, CEO, explained that the share buyback is a first for the group, aimed at neutralizing the dilution from the employee shareholding program. The company remains flexible and agile with capital allocation, prioritizing growth investments and maintaining a leverage ratio below 3 times. The buyback reflects confidence in the company's value creation and financial solidity.