Waste, water, and energy management multinational Veolia on Wednesday reported a first-quarter dip in revenue and a steeper slide in net income over the prior-year period.
Revenue dropped by 3.4 percent, from 6.31 billion euros in first-quarter 2015 to 6.09 billion euros for the three-month period ending March 31 of this year. The company cited declining energy prices in the United States, Germany, and Central Europe, along with detrimental exchange rates and falling construction revenue.
Net income was down 18 percent from 212 million euros in the first quarter of 2015 to 173 million in its latest reporting period. However, “Excluding capital gains and losses on financial divestitures net of tax, current net income attributable to owners of the Company rose 16.0% to €170 million from €147 million,” according to a Veolia press release.
“The 2016 fiscal year has started out on a satisfactory note with 5% growth in EBITDA and 16% growth in our current net income excluding capital gains. As evidence of improved operational management, our margins have also continued to improve,” Chairman and CEO Antoine Frérot said in the release. “Revenue is down in the first quarter, mainly due to the impact of lower energy prices, but also related to our intent to accelerate the recovery in our construction business. Excluding these two elements, which had little impact on our profits, revenue increased by 1.6%. This good start to the year allows us to be confident in the achievement of our full year objectives.”
Veolia’s press release made only a passing reference to its acquisition of nuclear waste management technology company Kurion, which was finalized in April, noting that its net financial debt had been impacted investments including by the 330 million euro buyout.
Management affirmed its 2016 objectives for revenue and EBITDA growth, current net income no less than 600 million euros, and net free cash flow before divestments and acquisitions of 650 million euros or more.
