Paris-based global waste management specialist Veolia on Monday reported higher revenue for the first half of 2017, while the net income picture was mixed based on whether net capital gains are included. Revenue spiked even higher for the company’s “Rest of the World” segment, which includes its Veolia Nuclear Solutions subsidiary.
Total company revenue landed at 12.35 billion euros for the first six months of the year, up 4.4 percent at constant exchange rates from 11.84 billion euros in the same period of 2016.
Veolia reported 295 million euros in net income, down by 8.6 percent from 323 million euros in first-half 2016. However, the company’s capital gains plummeted from 40 million euros in 2016 to effectively zero this year, Chief Financial Officer Philippe Capron noted Tuesday during Veolia’s quarterly earnings conference call; taking out net financial gains, the net income figure is up by 4.4 percent. Earnings before interest, taxes, depreciation, and amortization (EBITDA) took a small 0.4 percent step up, to 1.65 billion euros.
“First half numbers are, from my point of view, very satisfactory,” Veolia CEO Antoine Frérot told financial analysts during the call. “The two pillars of our strategy are functioning well: growth and efficiency. Regarding growth, revenue increased 4.4 percent. Second-quarter growth was as good as the first despite a less favorable comparison base. Europe, excluding France, and mainly the Rest of the World, drove this growth.”
Rest of the World revenue rose by 11.3 percent: 11.8 percent in the first quarter and 10.8 percent in the second quarter.
Veolia did not break out data for its Nuclear Solutions business in its earnings press release, and executives did not discuss the segment during the conference call. Nuclear Solutions encompasses three formerly individual businesses, including U.S.-based nuclear cleanup technology provider Kurion, which Veolia purchased in 2016. The segment offers services including remediation of nuclear sites and treatment of low- and intermediate-level radioactive waste.
