Séché Environnement: Consolidated Results at December 31, 2022
Séché Environnement reported robust 2022 results, achieving contributed revenue of €895m, up 22% from 2021, due to strategic acquisitions and strong organic growth. EBITDA reached €202m, representing 23% of revenue, while net income surged 57% to €45m. The Group's financial leverage ratio increased to 2.8x, while a dividend of €1.10 per share was proposed. For 2023, Séché anticipates near €1bn in contributed revenue, driven by full-year contributions from acquisitions and organic growth. The company is set to maintain solid operating margins and a focus on sustainable growth amidst favorable market conditions.
- Contributed revenue increased by 22% to €895m in 2022.
- Net income rose 57% to €45m, reflecting strong financial health.
- Proposed dividend increased from €1.00 to €1.10 per share.
- EBITDA margin maintained at 23% of contributed revenue.
- Positive outlook for 2023 with an expected revenue of close to €1bn.
- Financial leverage ratio increased to 2.8x, indicating higher debt levels.
Strategic acquisitions in
Solid organic growth for all scopes
Solid operating margins confirmed
Sharp increase in net income (Group)
Favorable 2023 outlook
CHANGÉ,
Séché Environnement (Paris:SCHP):
2022 achievements at the upper end of targets
Sales performance: |
Contributed revenue: |
+ |
vs. |
Operational performance:
|
EBITDA:
COI: |
+
+ |
vs.
vs. |
Earnings performance :
|
Net income (Group share) |
+
|
vs.
|
Financial performance: |
Financial leverage ratio: 2.8x |
+0.1x |
vs. |
|
(after acquisitions) |
|
|
Dividend proposed to the
Outlook for 2023 on the right track
Contributed revenue of close to
- Scope effect linked to the full-year contribution of acquisitions in 2022
-
Organic growth in the historical scope1 at a normative rate of around +
5%
EBITDA margin close to
- Growth in the EBITDA margin of the historical scope1
- Increase in profitability of the consolidated scopes in 2022
Financial leverage ratio of 2.7x EBITDA (excluding acquisitions)
At the Board of Directors meeting held on
"At the heart of a world facing multiple challenges, Séché Environnement once again demonstrated in 2022 the relevance of its growth model in contending with long-term societal challenges and crisis situations.
This success is the result of a business model transformation strategy to which our Group has been committed for several years and which has made it an international environmental services group whose mission is to support its customers, particularly industrial customers, in their own transformation towards a sustainable growth model, capable of reducing their environmental footprint.
This winning strategy was once again validated in 2022 by very good performances in economic, operational, financial and non-financial terms. The strong growth achieved in 2022, particularly on an organic basis, stems from consolidated results that once again demonstrate the resilience of our operating margins, including in an inflationary environment, and a solid balance sheet structure that guarantees the continuation of long-term strategic development.
At the same time, the alignment with the European green taxonomy of the Group's business lines and the non-financial strategy targeting, among other things, demanding environmental goals, particularly in terms of decarbonization, demonstrate the close symbiosis between Séché Environnement's transition challenges and those of its customers.
As such, Séché Environnement enters 2023 with confidence and serenity.
More than ever committed to its customers at the heart of an industrial and territorial ecology approach to meet their challenges in preventing environmental risks and accessing their strategic resources – energy, materials and water –, our Group is strengthening its presence on resilient markets with high visibility on which it intends to operate with differentiation and added value.
The current year will be a major step in Séché Environnement's growth, including the consolidation of new activities that offer significant potential on sustainable growth markets, such as the industrial water cycle market, in
I would like to state my conviction that Séché Environnement will once again confirm its growth profile in 2023, generating high profitability, and that our Group will strengthen its ability to create lasting value for its shareholders and all its stakeholders, serving a more sustainable world. "
Selected financial data
Consolidated data in €m
At |
2021 |
2022 |
Gross change |
Organic change |
Contributed revenue |
735.8 |
895.3 |
+ |
+ |
EBITDA |
170.3 |
201.6 |
+ |
+ |
% of revenue |
|
|
|
|
Current operating income |
71.5 |
91.3 |
+ |
+ |
% of revenue |
|
|
|
|
Net financial income |
(24.1) |
(18.5) |
(23.2)% |
|
Income tax |
(14.1) |
(19.2) |
+ |
|
Share of income of equity accounted investees |
(0.9) |
(1.3) |
|
|
Attributable to non-controlling equity interests |
(1.2) |
(3.3) |
|
|
Profit of the period (attributable to company shareholders) |
28.4 |
44.6 |
+ |
|
% of revenue |
|
|
|
|
Profit of the period per share (attributable to company shareholders) |
3.64 |
5.72 |
+ |
|
|
|
|
|
|
Dividend per share (in € per share) |
1.00 |
1.10 |
+ |
|
|
|
|
|
|
Recurring operating cash flow2 |
139.5 |
179.1 |
+ |
|
Net industrial CapEx disbursed |
87.4 |
95.7 |
+ |
|
Free operating cash flow3 |
77.8 |
78.4 |
+ |
|
Cash and cash equivalents |
172.2 |
126.2 |
(26.7)% |
|
Net financial debt under IFRS |
474.9 |
587.4 |
+ |
|
|
|
|
|
|
Financial leverage ratio |
2.7x |
2.8x |
+0.1x |
|
Summary of activity, results and financial position for the year ended
For the year ended
The Group pursued a dynamic external growth policy in 2022, with the acquisition of around
At the same time, the Group posted sustained organic growth in
Implementation of a dynamic growth policy
Strategic acquisitions in Industrial Water
On
On
Lastly, on
Solid organic growth for all scopes
In 2022, Séché Environnement posted strong organic growth of
In
In 2022, the energy and commodities crisis supported growth by making the Group's recovery solutions more attractive in terms of the major challenges facing industrial and local authority clients in accessing available resources, materials, and energy at a competitive price.
In addition, the Group's organic growth was bolstered by market opportunities and major one-off contracts in the decontamination and environmental emergencies business lines, totaling around
Overall, in
International: strong performance in all regions
In 2022, the international markets saw very favorable trends in all regions, underpinned by the good performance of local economies and/or strong levels of activity for local industrial customers, which benefited from their exposure to the commodities and energy sectors.
In addition, growth during the financial year partially reflects the strong rebound in Solarca's activities and subsidiaries in
Lastly, international growth included the contribution of major spot contracts in the decontamination and environmental emergencies businesses, particularly in
International activities posted very strong growth of +
Significant growth in operating income
The 2022 financial year showed a further increase in consolidated operating income and continued improvements in gross and current operating margin at constant scope.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose sharply, by +
at constant scope, it was up +
This improvement in gross operating margin compared to 2021 reflects the solid contribution of the
-
France EBITDA rose +
11.0% to€146.9m , or24.9% of contributed revenue, at the same level as last year.
It benefited from favorable commercial effects (positive volume effects, mix effects and price effects), as well as the positive effects of the industrial efficiency policy on capacity availability. However, it contributed approximately -€6.0m to the capping of infra-marginal income of electricity producers implemented retroactively by the Finance Act for 2023.Excluding this impact, and all other things being equal, EBITDA in
France would have amounted to25.9% of contributed revenue (vs.24.9% a year earlier), demonstrating the strong resilience of the gross operating margin, even in an inflationary environment. -
International EBITDA rose +
29.7% (at constant exchange rates) to€50.6m , or19.7% of contributed revenue (vs.€37.9m or18.6% of contributed revenue in 2021), driven by the improvement in activity levels (positive volume and mix effects) across all regions, particularly inLatin America and for Solarca.
Current operating income (COI) totaled
At constant scope, growth remained very strong (+
-
France COI stood at
€63.1m , or10.7% of contributed revenue, reflecting organic growth in EBITDA minus, in particular, the increase in depreciation and amortization related to the recent investments in the Hazard Management businesses. -
International COI came to
€27.6m , or10.7% of contributed revenue (vs.€16.8m , or8.2% of contributed revenue, in 2021). This sharp improvement (+59.5% at constant exchange rates) corresponds to the growth in EBITDA for this scope and includes the increase in depreciation due to the ramp-up of new capacity forInterwaste and Mecomer.
Operating income totaled
Sharp increase in profit of the period (attributable to company shareholders) – Increase in dividend
Net financial income
For the year ended
This improvement reflects the slight fall in the cost of gross debt to -
Income tax
For the year ended
Consolidated profit of the period
After recognizing the share of profit of equity-accounted investees in the amount of -
Net of the share attributable to non-controlling equity interests totaling -
Profit of the period per share amounted to
Solid financial position
In 2022, industrial investments amounted to
-
Maintenance investments were carefully managed, at
€57.4m , representing6.4% of contributed revenue (vs.€50.4m , or6.8% of contributed revenue, in 2021), mainly due to the effects of the industrial efficiency policy. -
Development investments totaled
€47.6m , or5.3% of contributed revenue (vs.€42.0m , or5.7% of contributed revenue in 2021), and mainly related to growth investments in Services activities and thermal treatment tools (Hazard Management).
Free operating cash flow amounted to
The cash balance amounted to
New financial debt stood at
Recent events and outlook
Acquisition of Assainissement Rhône-
On
Based in Bonnefamille (
The acquisition price of around
This acquisition complements Séché Environnement's operations in the Rhône-Alpes region.
Validation of the decarbonization strategy by the SBTi
In
Séché Environnement's decarbonization strategy targets an absolute reduction of
Outlook for 2023
Markets offering strong visibility and lasting positive trends
Positioned on buoyant markets offering strong visibility in the circular economy and the decarbonization of the economy, as well as the protection of the environment, human health and biodiversity, Séché Environnement offers industrial and local ecology solutions aimed at providing its clients with local, sustainable, low-carbon resources and solutions to their challenges of managing industrial and environmental risks.
It addresses the long-term issues of industrial and territorial sustainability, and meets regulatory constraints that require – in
In addition, faced with these clients' short-term challenges in managing the energy crisis, the sharp rise in commodity prices, and the already noticeable effects of climate change, Séché Environnement's services meet the urgent need for these clients to find local, low-carbon solutions to ensure the security of their supplies of strategic resources such as energy, raw materials, and water.
Continued organic growth at a steady pace
Full-year contribution of newly consolidated activities
For its historical scope7, after financial year 2022 saw strong organic growth, exceptionally large environmental emergencies contracts in
-
In
France , a return to a more normal pace of growth, in line with its sustainable growth level over the medium term; -
Internationally, the continuation of significant growth in the main scopes, such as Mecomer and
Interwaste , which should continue to benefit from the ramping-up of their new capacities, whileLatin America and Solarca are expected to return to pre-pandemic growth rates.
In its new scope, the Group will also benefit from the full-year contribution of the newly consolidated subsidiaries in 2022 and the pro rata contribution of acquisitions made at the beginning of 2023.
It will also benefit from sales momentum resulting from the roll-out of these activities, particularly in sanitation and industrial water management services, and the implementation of commercial and industrial synergies with the rest of the Group.
Overall, Séché Environnement's contributed revenue is expected to be close to
Solid operating margins for the historical scope
Increase in profitability for the recently consolidated activities
In its historical scope8, the Group is confident in its ability to continue to grow its EBITDA margin (EBITDA/contributed revenue) compared to 2022:
-
in
France , Séché Environnement will benefit from positive commercial effects on positively oriented markets, as well as the impact of its industrial efficiency strategy based on highly selective investments, improvements in its facility utilization rates and the optimization of its logistics; - internationally, the Group should confirm the improvement in its operating margin, driven by the anticipated growth of its main subsidiaries.
For the new scope consolidated in 2022, particularly in the sanitation and industrial water businesses, Séché Environnement will work to integrate these activities and implement industrial and commercial synergies with the Group's other business lines in order to gradually bring their EBITDA margin up to Group standards, starting in 2023.
Overall, the EBITDA margin is expected to be close to
Controlled industrial investments
Free cash flow generation and financial flexibility confirmed
Industrial investment is expected to be in line with 2022, in the region of
In addition, the Group will focus on maximizing its free operating cash flow generation, for example by returning to a zero working capital requirement, excluding acquisitions carried out in 2023. This will help it meet the goal of achieving a ratio of free cash flow to EBITDA of above
Medium-term outlook
Financial outlook
Séché Environnement's financial achievements in 2022 boost the Group's confidence that it will deliver on its objectives by 202510.
However, given the significant changes in the scope of consolidation in 2022 and early 2023 – as of the date of writing of this press release – Séché Environnement expects to update its medium-term outlook in 2023 to take into account the contribution of the new scopes in its three-year forecasts (through to 2026).
Non-financial performance outlook
Séché Environnement maintains its 2030 Climate strategy, which is aligned with the objectives of the 2017 Paris Agreement, under which it will reduce its own greenhouse gas emissions by
The achievement of these objectives will draw on an action plan with three complementary drivers:
-
Energy restraint: the Group aims to reduce the amount of energy consumed at each site by at least -
10% between 2020 and 2025. With regard to industrial and tertiary buildings, energy reduction actions focus on heating, lighting and office tools. For industrial processes, they target air production, cooling, heat production, leachate and biogas management, as well as the optimization of the use of production and transportation vehicles. - Energy substitution: the Group favors low-carbon energy consumption. It primarily seeks to use the energy produced from waste at its sites (biogas, heat, electricity), which has a lower emission factor than energy it purchases. In addition, the Group is stepping up its efforts to replace the fossil fuels it uses with less carbon-intensive energies (from fossil or non-fossil sources).
- Combating fugitive emissions: Séché Environnement implements policies to combat diffuse biogas emissions and to detect and reduce biogas emissions by continuously carrying out corrective actions and adapting its operations.
Results presentation webcast
Connect on the home page of the Séché Environnement website
In French: https://www.groupe-seche.com/fr
In English: https://www.groupe-seche.com/en
Next release
First-quarter 2023 turnover:
General Meeting of Shareholders
About Séché Environnement
Séché Environnement is a leading player in waste management, including the most complex and hazardous waste, and in environmental services, particularly in the event of an environmental emergency. Thanks to its expertise in the creation of circular economy loops, decarbonization and hazard control, the group has been contributing to the ecological transition of industries and territories, as well as to the protection of the living world, for nearly 40 years. A French family-owned industrial group, Séché Environnement deploys the cutting edge technologies developed by its R&D department at the heart of territories, in more than 120 locations in 15 countries, including some fifty industrial sites in
Séché Environnement is listed on Eurolist by Euronext (compartment B). It is eligible for equity savings funds dedicated to investment in SMEs and is included in the CAC Mid&Small, EnterNext Tech 40 and EnterNext PEA-PME 150 indexes. ISIN: FR 0000039139 – Bloomberg: SCHP.FP – Reuters: CCHE.PA
FINANCIAL INFORMATION FOR
THE YEAR ENDED
(Excerpts from the Management Report)
Comments on activity and results for the year ended
Reported revenue and contributed revenue - Scope effect
For the year ended
At |
2021 |
2022 |
IFRIC 12 investments |
8.7 |
21.7 |
TGAP11 |
45.6 |
55.7 |
Non-contributed revenue |
54.3 |
77.4 |
Reported data in €m
Net of non-contributed revenue, contributed revenue totaled
This increase includes a scope effect of
-
Spill Tech (
South Africa ), consolidated onMarch 1, 2021 :€8.5m ; -
Séché Assainissement (
France ), consolidated onJanuary 1, 2022 :€26.8m ; -
All'Chem (
France ), consolidated onJune 10, 2022 :€8.8m ; -
Séché Assainissement 34 (
France ), consolidated onJuly 6, 2022 :€2.0m ; -
Séché Traitement Eaux Industrielles (
France ), consolidated onNovember 30, 2022 :€2.3m .
Breakdown of scope effect by division
At |
|
International |
Total |
Hazardous Waste division |
11.1 |
8.5 |
19.6 |
Non-Hazardous Waste division |
28.7 |
- |
28.7 |
Total scope effect |
39.8 |
8.5 |
48.3 |
At constant scope, contributed revenue amounted to
Breakdown of revenue by geographic region
At |
2021 |
2022 |
Gross change |
||
|
In €m |
As a % |
In €m |
As a % |
As a % |
Subsidiaries in |
531.7 |
|
629.3 |
|
+ |
o/w scope effect |
- |
- |
39.8 |
- |
- |
International subsidiaries |
204.1 |
|
266.0 |
|
+ |
o/w scope effect |
34.0 |
- |
8.5 |
- |
- |
Total contributed revenue |
735.8 |
|
895.3 |
|
+ |
Consolidated data at current exchange rates. At constant exchange rates, contributed revenue for the year ended |
In 2022, the Group confirmed its high level of activity in
-
In
France , contributed revenue rose sharply (+18.4% ) to€629.3m , vs.€531.7m for the year endedDecember 31, 2021 . This increase includes a scope effect of€39.8m (see above).
At constant scope, contributed revenue generated by the French subsidiaries amounted to€589.5m , an increase of +10.9% year on year.Séché Environnement benefited from industrial and local authority markets driven by the circular economy and services activities. This sales momentum enabled the Group to enjoy favorable volume and price effects, while Service activities saw strong growth, bolstered by exceptionally large contracts in the environmental emergencies business lines, amounting to around
€10m .Revenue earned in
France accounted for70.3% of contributed revenue for the year endedDecember 31, 2022 (vs.72.3% one year earlier);
-
Internationally, revenue totaled
€266.0m , vs.€204.1m for the year endedDecember 31, 2021 , an increase of +30.3% (reported data).
International revenue included a scope effect of +€8.5m (see above). It also recorded a positive exchange rate effect of€4.5m mainly due to the appreciation of the South African rand and, to a lesser extent, the Peruvian sol.At constant scope, international revenue increased by +
23.4% (at constant exchange rates), reflecting the return to strong growth in most geographical regions:-
Europe , excluding Solarca (revenue:€81.6m , up +15.9% ), recorded a significant increase in revenue for Mecomer (hazardous waste platform activity inItaly ), which benefited from the ramp-up of its new capacities, and the strong performance of Valls Quimica (solvent regeneration inSpain ), which is positioned on the circular economy applied to chemicals; -
South Africa (revenue:€116.3m , up +11.6% at constant exchange rates):Interwaste confirmed its solid performance on its waste management markets, while Spill Tech continued its strong growth on the environmental emergencies markets during a financial year characterized by exceptional contracts. Note THE positive foreign exchange effect of +€3.2m linked to the appreciation of the rand against the euro over the financial year; -
Latin America (revenue:€28.7m , up +87.6% at constant exchange rates) achieved a strong rebound on markets faring better after two years penalized by the consequences of the pandemic. The region benefited from the good performance of environmental emergencies activities with exceptional contracts (Peru ); -
Solarca -
Europe and the Rest of the World (revenue:€31.5m , up +66.3% at constant exchange rates) experienced a strong and lasting recovery in its activities after two years significantly affected by the Covid crisis.
-
Revenue earned by international subsidiaries accounted for
Breakdown of revenue by activity
At |
2021 |
2022 |
Gross change |
||
|
In €m |
As a % |
In €m |
As a % |
|
Services |
301.4 |
|
405.9 |
|
+ |
o/w scope effect |
34.0 |
- |
39.5 |
- |
|
Circular economy and decarbonization |
243.1 |
|
286.0 |
|
+ |
o/w scope effect |
- |
- |
8.8 |
- |
|
Hazard Management |
191.3 |
|
203.4 |
|
+ |
o/w scope effect |
- |
- |
- |
- |
|
Total contributed revenue |
735.8 |
|
895.3 |
|
+ |
Consolidated data on a reported basis. |
Service activities and those related to the circular economy and decarbonization drove growth in 2022.
Service activities posted revenue of
This increase includes a scope effect of
At constant scope, Service activities achieved strong growth of +
They benefited from:
-
In
France (revenue:€196.6m , up +13.0% ), the contribution of Key Account Services, in particular "comprehensive services", which meet clients' growing long-term needs to outsource their sustainable development issues, and the good performance of Environmental Services (decontamination, emergency response), in particular in the first part of the year, which recorded exceptionally large contracts worth around€10m ;
-
Internationally (revenue:
€169.8m , up +26.0% at constant exchange rates), the return to growth for Solarca and the dynamism of the environmental emergencies business inSouth Africa andPeru , which also recorded exceptionally large contracts of around€15m in the first half of 2022.
Service activities accounted for
Activities related to the circular economy and decarbonization posted
at constant scope, growth reached +
This increase reflects:
-
In
France (revenue:€198.8m , up +12.8% ), the strong performance in material recovery activities, driven by the implementation of regulations for the circular economy, and in energy recovery activities, underpinned by high energy prices. Revenue from energy sales includes, for around€10m , the proceeds from sales of electricity at prices of more than€175 /MWh, which were subject to an exceptional tax recorded under "Taxes" for an amount of around -€6.0m ; -
Internationally (revenue:
€78.3m , up +17.2% at constant exchange rates), the good performance of Valls Quimica (chemical regeneration inSpain ).
Activities related to the circular economy and decarbonization accounted for
Hazard Management activities generated revenue of
-
In
France , hazard management activities increased +6.9% to€194.0m . They were boosted by volume effects and, above all, by positive price effects on markets with a healthy level of use of facilities;
-
Internationally, at
€9.4m , these activities posted growth of +14.6% at constant exchange rates, reflecting the good performance of the markets inLatin America in particular.
Hazard Management activities accounted for
Breakdown of revenue by division
At |
2021 |
2022 |
Gross change |
||
|
In €m |
As a % |
In €m |
As a % |
|
Hazardous Waste division |
483.9 |
|
568.8 |
|
+ |
o/w scope effect |
34.0 |
- |
19.6 |
|
|
Non-Hazardous Waste division
|
251.9 |
|
326.5 |
|
+ |
o/w scope effect |
- |
- |
28.7 |
|
|
Total contributed revenue |
735.8 |
|
895.3 |
|
+ |
Consolidated data at current exchange rates. |
The Hazardous Waste (HW) division, which accounted for
At constant scope, this division's revenue was up +
-
In
France , this division generated€364.0m in revenue, an increase of +9.2% from 2021. Over the period, the division was driven by circular economy activities (material and energy recovery) and its services activities (comprehensive services, environmental emergencies); -
Internationally, the division's revenue amounted to
€185.1m for the year endedDecember 31, 2022 , an increase of +12.8% at constant exchange rates, illustrating the strong dynamics of the Services (environmental emergencies) and Hazard Management markets over the period.
The Non-Hazardous Waste (NHW) division, which accounted for
This increase includes a scope effect of
At constant scope, growth in this division came out at +
-
In
France (revenue of€225.4m , up +13.6% ), strong growth in activities related to the circular economy and decarbonization (particularly energy recovery) and the good performance of the Hazard Management activities; -
Internationally (revenue at
€72.4m , up +61.2% at constant exchange rates), the momentum inSouth Africa and particularlyLatin America .
EBITDA
For the year ended
This increase includes a scope effect of +
At constant scope, EBITDA stood at
This increase in EBITDA (+
-
Positive volume and mix effects in both
France and the International scope, amounting to +€77.8m , thanks to very strong sales momentum and the industrial efficiency policy, which optimizes capacity availability; -
Price effects, for +
€67.9m , in line with high waste treatment capacity use inFrance .
This increase was partially offset by trends in:
-
Variable operating expenses (+
€74.2m ), reflecting in the amount of€37.8m the impact of the rebound in international activity and around +€18.7m the increase in the cost of energy and raw materials; -
Fixed expenses (+
€38.8m ), mainly due to higher maintenance costs and higher payroll costs; -
Various expenses (+
€5.5m ), including, for around -€6.0m , the impact of measures provided for by the 2023 Finance Act inFrance , which retroactively caps electricity producers' inframarginal income. Excluding this impact, and all other things being equal, EBITDA would have amounted to24.1% of contributed revenue (vs.23.1% a year earlier), illustrating the resilience of the gross operating margin in an inflationary environment.
Breakdown of EBITDA by geographic scope
At |
2021 |
2022 |
||||||
In €m |
Consolidated |
|
Internnal |
Consolidated |
|
Internnal |
||
Contributed revenue |
735.8 |
531.7 |
204.1 |
895.3 |
629.3 |
266.0 |
||
EBITDA |
170.3 |
132.4 |
37.9 |
201.6 |
148.7 |
52.9 |
||
% of contributed
|
|
|
|
|
|
|
||
Consolidated data at current exchange rates. |
For each geographic scope, the main changes were:
-
In
France , EBITDA totaled€148.7m , or23.6% of contributed revenue (vs.€132.4m , or24.9% of contributed revenue, in 2021).
This increase includes a scope effect of +€1.8m corresponding to the pro rata contribution of newly consolidated entities during the fiscal year.At constant scope, EBITDA in
France was up +11.0% to€146.9m , or24.9% of contributed revenue at the same level as last year, due to:-
Favorable commercial effects (volumes and mix), amounting to +
€18.1m , in connection with the good market trends inFrance and the positive effects of the industrial efficiency policy, which optimizes capacity availability and the efficiency of processes (logistics in particular); -
Favorable price effects, for +
€63.6m , in line with high waste treatment capacity use inFrance ; -
The increase in variable operating expenses (+
€36.4m ), partly reflecting the effects of more expensive energy and raw materials; -
The increase in fixed expenses (+
€25.3m ), in line with the increase in maintenance costs and higher payroll costs; -
The
€5.5m increase in various expenses, including the measures provided for by the 2023 Finance Act inFrance , which retroactively caps electricity producers' inframarginal income, for around€6.0m . Excluding this impact, and all other things being equal, EBITDA inFrance would have come to25.9% of revenue at constant scope, demonstrating the strong resilience of the EBITDA margin for this scope, even in an inflationary environment.
-
Favorable commercial effects (volumes and mix), amounting to +
-
Internationally, EBITDA totaled
€52.9m , or19.9% of contributed revenue. This increase includes a scope effect of +€2.3m due to the consolidation of Spill Tech over two additional months in 2022. The foreign exchange effect was positive at +€1.1m .
At constant scope, EBITDA rose +29.7% (at constant exchange rates) to€50.6m , or19.7% of contributed revenue (vs.€37.9m , or18.6% of contributed revenue in 2021).This change (+
€12.7m ) mainly reflects:-
Favorable volume and mix effects of +
€59.8m , reflecting the increase in business compared with 2021, particularly inLatin America and at Solarca; -
Positive price effects, totaling +
€4.3m ; -
An increase in variable operating expenses of
€37.8m , in line with the growth in activity; -
Fixed expenses up +
€13.6m , mainly related to payroll costs.
-
Favorable volume and mix effects of +
Current operating income
For the year ended
This includes a scope effect of
At constant scope, COI increased significantly (+
This sharp improvement mainly reflects the organic increase in EBITDA (+
Breakdown of COI by geographic scope
At |
2021 |
2022 | |||||
In €m |
Consolidated |
|
Internnal |
Consolidated |
|
Internnal |
|
Contributed revenue |
735.8 |
531.7 |
204.1 |
895.3 |
629.3 |
266.0 |
|
COI |
71.5 |
54.7 |
16.8 |
91.3 |
61.7 |
29.6 |
|
% of contributed
|
|
|
|
|
|
|
For each geographic scope, the main changes were:
-
In
France , COI totaled€61.7m , or9.8% of contributed revenue (vs.€54.7m , or10.3% of revenue one year earlier), representing an increase of +12.8% compared to 2021. This increase includes a scope effect of€1.4m linked to the pro rata contribution of newly consolidated entities in 2022.
At constant scope, COI inFrance amounted to€63.1m , or10.7% of contributed revenue. This good performance reflects the organic growth in EBITDA inFrance (+€14.5m ), minus the increase in depreciation and amortization linked in particular to investments in the Hazard Management business;
-
Internationally, COI was up +
76.2% to€29.6m , or11.1% of contributed revenue in reported data. This sharp increase incorporates a€2.0m scope effect related to the contribution of Spill Tech over two additional months in 2022 and a positive currency effect of +€0.5m .
AT constant scope, International COI increased sharply by +59.5% (at constant exchange rates) to€27.6m , or10.7% of contributed revenue (vs.€16.8m , or8.2% of contributed revenue, in 2021).This performance mainly reflects the organic improvement in International EBITDA (+
€11.6m ), less the increase in depreciation and amortization due to new capacity at Mecomer andInterwaste .
Operating income
Operating income totaled
This increase mainly reflects the increase in COI less the effects of business combinations, in the amount of -
Net financial income
For the year ended
This improvement reflects in particular:
-
A slight fall in the cost of net debt to -
€17.8m (vs. -€18.4m a year earlier, despite average gross financial debt increasing over the period and the cost of borrowing being significantly reduced to2.56% (vs.2.76% in 2021), mainly due to the bond issue carried out at the end of 2021. -
The significant improvement in "Other financial income and expenses" to -
€0.9m vs. -€4.7m in 2021. In 2021, this item included early repayment penalties on the senior bank debt and certain euro-PPs maturing in 2023, for -€4.4m .
Income tax
For the year ended
-
For
France , -€12.1m , including -€5.6m in deferred tax, vs. -€9.7m , of which -€2.2m in deferred taxes; -
For the international scope, -
€7.1m , including -€1.2m in deferred tax, vs. -€4.4m – including +€2.1m in deferred taxes.
The effective tax rate was
Share of profit of equity accounted investees
The share of profit of equity accounted investees was primarily composed of the Group's share in the income of Gerep and Sogad. It stood at -
Consolidated profit of the period
For the year ended
After recognizing net profit attributable to non-controlling equity interests, in the amount of -
Profit of the period per share amounted to
Comments on cash flows and the financial position for the year ended
Cash flow
Summary consolidated statement of cash flows
In €m, at |
2021 |
2022 |
Cash flow from operating activities |
142.3 |
148.1 |
Cash flows from investments |
(117.6) |
(189.5) |
Cash flows from financing activities |
41.6 |
(5.2) |
Change in cash from continuing operations |
66.2 |
(46.6) |
Change in cash flow from discontinued operations |
- |
- |
Change in cash and cash equivalents |
66.2 |
(46.6) |
During the period, cash and cash equivalents fell from +
This contraction of -
-
The increase in cash flows generated by operating activities: +
€5.8m . -
The increase in cash flows related to investments: +
€71.9m . -
Changes in cash flows related to financing activities: -
€52.2m .
Cash flow from operating activities
In 2022, the Group generated
This change reflects the combined effect of:
-
Cash flows from operating activities before taxes and financing costs: +
€35.8m , at€188.9m (vs.€153.1m in 2021); -
The working capital requirement: -
€25.0m vs. -€0.6m in 2021; -
Taxes paid: -
€15.8m vs. -€10.1m in 2021.
Cash flows from investments
In EUR m - at |
2021 |
2022 |
Net industrial investments (excl. IFRIC) |
92.4 |
105.0 |
Net financial investments |
1.2 |
0.2 |
Net investments recognized |
93.8 |
105.2 |
Net industrial investments |
87.4 |
95.7 |
Net financial investments |
0.8 |
3.0 |
Acquisition of subsidiaries - Net cash flow |
29.4 |
77.7 |
Investments paid out |
117.6 |
176.4 |
Industrial investments amounted to
-
Maintenance investments totaling
€57.4m , representing6.4% of contributed revenue (vs.€50.4m in 2021, or6.8% of contributed revenue), demonstrating their good control linked to improved industrial efficiency. -
Development investments totaling
€47.6m , or5.3% of contributed revenue (vs.€42.0m in 2021, or5.7% of contributed revenue). These mainly concern growth investments in Services activities and thermal treatment tools (Hazard Management).
By type, industrial investments can be broken down as follows12:
-
€9.8m in category two expenses for major maintenance and renewal (vs.€14.0m in 2021); -
€18.0m for energy storage and production facilities (vs.€18.7m in 2021); -
€16.8m for thermal treatment systems (vs.€16.1m in 2021); -
€6.2m for recovery facilities (vs.€3.9m in 2021); -
€17.7m for eco-service systems, including the vehicle fleet (vs.€11.5m in 2021); -
€20.9m for holding company activities, covering information systems, regulatory investments and the development of subsidiaries (vs.€16.9m in 2021); -
€15.6m in miscellaneous recurring investments (vs.€11.3m in 2021).
Cash flows from financing activities
Total net cash relating to financing activities amounted to -
-
Flows from new borrowings:
€104.8m vs.€385.6m last year. In 2021, this line included a€50m euro-PP issue carried out inMarch 2021 and a€300m senior bond issue inNovember 2021 ; -
Flows from loan repayments: -
€60.7m vs. -€293.8m in 2021. In 2021, these flows included the early repayment of the senior bank loan and euro-PP bonds maturing in 2023; -
The interest expense: -
€14.6m vs. -€15.3m in 2021; -
Flows from dividends paid to company shareholders and non-controlling interests: -
€8.8m vs. -€8.5m in 2021; -
Cash flows without gain of control: -
€3.0m vs. -€2.1m in 2021, mostly representing the acquisition of an additional9% interest in Solarca; -
Changes in own shares in the amount of
€0.1m , vs.€0.2m in 2021; -
The payment of lease liabilities for -
€23.5m , including lease interest payments for -€2.4m , vs.€19.2m , of which interest on leases for -€1.3m in 2021.
Debt and funding structure
Change in financial debt
In €m, at |
2021 |
2022 |
Bank loans |
139.1 |
186.5 |
Non-bank debt |
27.0 |
24.3 |
Bonds |
425.3 |
415.8 |
Lease liabilities |
45.7 |
65.4 |
Miscellaneous financial debt |
2.3 |
9.6 |
Factoring liabilities |
5.4 |
7.0 |
Short-term bank borrowings and overdrafts |
2.3 |
2.7 |
Gross financial debt |
647.1 |
713.6 |
Cash balance |
(172.2) |
(125.2) |
IFRS net financial debt |
474.9 |
587.4 |
of which due in less than one year (1) |
(108.1) |
(14.8) |
o/w due in more than one year |
583.0 |
602.2 |
(1) The cash balance is considered over less than one year |
Gross financial debt amounted to
-
The scope effect related to the consolidation of companies acquired in 2022: +
€16.6m , of which +€15.1m for lease liabilities.
At constant scope, mainly changes in:
-
Bank debt (excl. non-recourse bank loans): +
€47.4m . -
Bond debt:
€(9.5)m . -
Lease liabilities: +
€4.6m . -
Factoring liabilities: +
€1.6m . To enable the comparison of accounts, the line "Short-term bank borrowings and overdrafts" for 2021 has also been restated for the amount of factoring liabilities for the year endedDecember 31, 2021 , or€5.4m .
For the year ended
For the year ended
At this date, the Group's net financial debt amounted to
Over the period, it changed as follows:
In €m |
|
|
Net financial debt at opening |
450.3 |
474.9 |
Cash flows relating to operating activities |
(142.3) |
(148.1) |
Net industrial investments |
87.4 |
95.7 |
Net financial investments |
1.9 |
(0.1) |
Dividends paid |
8.5 |
8.8 |
Net interest payments (including interest on lease liabilities) |
16.6 |
17.0 |
Cash and cash equivalents without gain of control |
0.8 |
16.1 |
Other |
- |
0.6 |
Net financial debt at constant scope (and before non-cash effects) |
423.2 |
464.9 |
First-time consolidation |
36.1 |
80.7 |
Non-cash change |
15.6 |
41.8 |
Net financial debt at closing |
474.9 |
587.4 |
APPENDIX 1
Consolidated financial position
(in thousands of euros) |
|
|
|
324,156 |
395,992 |
Intangible assets in the licensed area |
36,846 |
30,861 |
Other intangible assets |
41,901 |
44,151 |
Property, plant and equipment |
344,847 |
409,251 |
Investments in equity accounted investees |
50 |
1,067 |
Non-current financial assets |
11,054 |
32,955 |
Non-current derivatives - assets |
- |
777 |
Non-current operating financial assets |
29,516 |
32,805 |
Deferred tax assets |
21,447 |
15,475 |
Non-current assets |
809,816 |
963,335 |
Inventories |
17,321 |
25,556 |
Trade and other receivables |
186,035 |
245,727 |
Current financial assets |
3,218 |
3,306 |
Current derivatives - assets |
- |
- |
Current operating financial assets |
36,220 |
40,473 |
Cash and cash equivalents |
172,201 |
126,166 |
Current assets |
414,996 |
441,229 |
Assets held for sale |
- |
- |
TOTAL ASSETS |
1,224,812 |
1,404,564 |
(in thousands of euros) |
|
|
Share capital |
1,572 |
1,572 |
Additional paid-in capital |
74,061 |
74,061 |
Reserves |
165,452 |
189,861 |
Profit of the period |
28,384 |
44,608 |
Shareholders' equity (attributable to company shareholders) |
269,469 |
310,102 |
Non-controlling interests |
5,426 |
7,286 |
Total shareholders' equity |
274,895 |
317,388 |
Non-current financial debt |
552,173 |
547,878 |
Non-current lease liabilities |
30,833 |
44,680 |
Non-current derivatives - liabilities |
0 |
10,341 |
Employee commitments |
17,178 |
18,029 |
Non-current provisions |
24,314 |
30,181 |
Non-current operating financial liabilities |
4,722 |
4,761 |
Deferred tax liabilities |
5,383 |
4,893 |
Non-current liabilities |
634,603 |
660,763 |
Current financial debt |
49,102 |
90,553 |
Current lease liabilities |
14,977 |
20,882 |
Current derivatives - liabilities |
- |
- |
Current provisions |
1,810 |
2,681 |
Trade payables |
137,343 |
165,086 |
Other current liabilities |
111,161 |
146,119 |
Tax liabilities |
922 |
1,092 |
Current liabilities |
315,314 |
426,412 |
Liabilities held for sale |
- |
- |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
1,224,812 |
1,404,564 |
APPENDIX 2
Consolidated income statement
(In thousands of euros) |
|
|
Revenue |
790,117 |
972,675 |
Other business income |
1,207 |
2,279 |
Income from ordinary activities |
791,324 |
974,954 |
Purchases used for operational purposes |
(97,760) |
(140,844) |
External expenses |
(280,042) |
(339,287) |
Taxes and duties |
(59,021) |
(76,166) |
Employee expenses |
(184,218) |
(217,099) |
EBITDA |
170,282 |
201,558 |
Expenses for rehabilitation and/or maintenance of sites under concession arrangements |
(10,692) |
(10,954) |
Depreciation & amortization, impairment, and provisions |
(86,624) |
(98,400) |
Other operating items |
(1,469) |
(938) |
Current operating income |
71,496 |
91,267 |
Other non-current items |
(2,813) |
(4,288) |
Operating income |
68,684 |
86,979 |
Cost of net financial debt |
(18,184) |
(17,053) |
Other financial income and expenses |
(5,941) |
(1,484) |
Net financial income |
(24,126) |
(18,537) |
Share of income of equity accounted investees |
(908) |
(1,341) |
Income tax |
(14,051) |
(19,232) |
Profit of the period |
29,599 |
47,870 |
o/w attributable to non-controlling equity interests |
(1,215) |
(3,262) |
o/w attributable to company shareholders |
28,384 |
44,608 |
Non-diluted earnings per share (in euros) |
3.64 |
5.72 |
Diluted earnings per share (in euros) |
3.64 |
5.72 |
APPENDIX 3
Consolidated statement of cash flows
(in thousands of euros) |
|
|
Profit of the period |
29,599 |
47,870 |
Share of income of equity accounted investees |
908 |
1,341 |
Dividends from joint ventures and equity accounted investees |
- |
- |
Depreciation & amortization, impairment, and provisions |
87,181 |
96,714 |
Income from disposals |
676 |
(55) |
Deferred taxes |
2,235 |
4,386 |
Other income and expenses |
4,018 |
6,850 |
Cash flows |
124,616 |
157,106 |
Income tax |
11,816 |
14,845 |
Cost of gross financial debt before long-term investments |
16,626 |
16,939 |
Cash flow before taxes and financial expenses |
153,058 |
188,890 |
Change in working capital requirement |
(645) |
(24,971) |
Tax paid |
(10,147) |
(15,803) |
Net cash flows from operating activities |
142,266 |
148,117 |
Investments in property, plant and equipment and intangible assets |
(89,565) |
(99,861) |
Disposals of property, plant and equipment and intangible assets |
2,119 |
4,157 |
Increase in loans and financial receivables |
(1,207) |
(18,632) |
Decrease in loans and financial receivables |
380 |
2,518 |
Acquisition of subsidiaries net of cash and cash equivalents |
(29,335) |
(76,239) |
Loss of control over subsidiaries net of cash and cash equivalents |
1 |
(1,426) |
Net cash flows from investing activities |
(117,608) |
(189,483) |
(in thousands of euros) |
|
|
Dividends paid to equity holders of the parent |
(7,410) |
(7,806) |
Dividends paid to holders of non-controlling interests |
(1,078) |
(1,027) |
Capital increase or decrease by controlling company |
- |
580 |
Cash and cash equivalents without loss/gain of control |
(2,077) |
(3,047) |
Change in own shares |
202 |
111 |
New loans and financial debt |
385,642 |
104,804 |
Repayments of borrowings and financial debt13 |
(293,842) |
(60,683) |
Interest paid |
(15,296) |
(14,580) |
Repayment of lease liabilities and associated financial expenses |
(19,185) |
(23,547) |
Net cash flows from financing activities |
41,575 |
(5,195) |
Total cash flow for the period, continuing operations |
71,614 |
(46,561) |
Net cash flows from discontinued operations |
- |
- |
TOTAL CASH FLOWS FOR THE PERIOD |
71,614 |
(46,561) |
Cash and cash equivalents at beginning of the period |
98,184 |
169,901 |
Closing cash and cash equivalents13 |
169,901 |
123,451 |
Effect of changes in foreign exchange rates |
(103) |
(112) |
(1) of which: |
|
|
Cash and cash equivalents |
172,201 |
126,166 |
Short-term bank borrowings and overdrafts (current financial debt)13 |
(2,301) |
(2,715) |
1 Excluding the scope consolidated in 2022 and 2023
2 Earnings before interest, tax, depreciation and amortization plus dividends received from subsidiaries and the balance of other operating income and expenses and cash, less site maintenance and restoration expenses, major maintenance expenses under concession arrangements ("public service delegations") and investments in concessions (IFRIC 12)
3 Free cash flow before non-recurring industrial investments, financial investments, dividends, and debt repayment
4 See press release of
5 See press release of
6 See press release of
7 Excluding the scope consolidated in 2022 and 2023
8 Excluding the scope consolidated in 2022 and 2023
9 Net financial debt / EBITDA
10 press release of
11
12 Some investments were subject to a scope adjustment in 2021.
13 These lines were restated for the amount of factoring liabilities for the year ended
View source version on businesswire.com: https://www.businesswire.com/news/home/20230306005412/en/
SÉCHÉ ENVIRONNEMENT
Analyst/Investor Relations
Head of Investor Relations
m.andersen@groupe-seche.com
+33 (0)1 53 21 53 60
Press and Media
Anna Jaegy
Communications Division
a.jaegy@groupe-seche.com
+33 (0)1 53 21 53 53
Source: Séché Environnement
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