Séché Environnement: Revenue as of March 31, 2016

Strong activity in the first quarter

CHANGÉ, France--()--Regulatory News:

As of March 31, 2016, Séché Environnement (Paris:SCHP) reported consolidated revenue of €112.4m versus €109.4m a year earlier.

Contributed revenue1 stood at €110.3m versus €103.9m as of March 31, 2015, reflecting solid growth of +6.1%.

During the first quarter of 2016, Séché Environnement benefited from positive sales momentum in strong markets that are on an uptrend. In such a promising environment, the two divisions received a boost from the solid performance of waste treatment activities and contributed equally to the organic growth of the consolidated business.

Compared to the first quarter of 2015, the Hazardous Waste division was impacted by a slight foreign exchange effect. It also experienced a scope effect resulting from the integration of acquisitions carried out in the second half of 2015 in the medical waste (DASRI) businesses and, in March 2016, in the radiation protection businesses.

At constant scope and exchange rates, Séché Environnement’s contributed consolidated revenue for the first quarter of 2016 was up by 5.1% compared to the same period last year.

Consolidated data in €m

       
As at March 31  

2015
actual

 

 

2016
actual

 

  Gross change  

Change
(organic)

Hazardous Waste (HW) division   65.0   69.4   +6.8%   +5.2%
Non-Hazardous Waste (NHW) division   38.9   40.9   +5.0%   +5.0%
Contributed revenue   103.9   110.3   +6.1%   +5.1%
Compensation for diverted waste (NHW)

IFRIC 12 revenue (NHW):


Consolidated revenue (reported)
  4.7

0.8


109.4
  1.5

0.7


112.4
  -

-


+2.8%
  -

-


+1.8%

As of March 31, 2015, consolidated revenue reported at constant exchange rates amounted to €109.1m, reflecting the impact of foreign exchange rates, which came to -€0.3m over the period for the HW division.

Commentary on division activity in the first quarter of 2016

The first quarter of 2016 was marked by robust activity in both divisions, especially in the waste treatment businesses, which represent 65.0% of contributed revenue (61.5% at March 31, 2015):

  • Hazardous Waste (HW) brought in revenue of €69.4m at March 31, 2016, growing by +6.8% compared to the first quarter of 2015.

    • In France, the division’s revenue stood at €63.8m at March 31, 2016, up by +8.0% compared to the previous year.

Activity was sustained by waste treatment, which benefited from the high availability of incineration facilities and by positive sales results in storage.

The division’s growth includes a scope effect of +€1.3m that is due in part to the contribution of acquisitions carried out in the second half of 2015 in the medical waste sector and in part to Séché Radioprotection’s1 inclusion within the scope starting on March 1, 2016.

At constant scope, the division’s growth in France amounted to +5.8%.

  • Internationally, revenue totaled €5.6m versus €5.9m at March 31, 2015. This was a change of -5.6% over the period, resulting from an adverse foreign exchange effect of €(0.3)m on the Argentinian peso.

At constant exchange rates, the decline in International activity is down to -0.9% for the period, primarily due to the lack of continuity for PCB activities (“spot contracts”) in Latin America.

  • At constant scope and exchange rates, the division’s revenue grew by +5.2% in the first quarter of 2016 compared to the first quarter of the previous year.
  • At March 31, 2016, revenue, excluding IFRIC 12 and excluding compensation for diverted waste for the NHW division, was up by +5.0% to €40.9m versus €38.9m at the same time last year.

This strong performance is the result of repeat business in the incineration markets and the solid performance of storage businesses, which, during this period, also benefited from a favorable basis for comparison with the first quarter of 2015.

It should be noted that compensation for diverted waste totaled €1.5m versus €4.7m in the first quarter of 2015. Revenues under IFRIC 12 came out to €0.7m versus €0.8m one year earlier.

Outlook for 2016 confirmed

Over the next few months, Séché Environnement will draw on the strength of its industrial markets and the resilience of its contracts with communities to continue its growth:

  • the HW division is expected to maintain a high level of activity, especially in the waste treatment businesses (primarily incineration), while eco-services (soil remediation) will most likely experience an upswing due to the seasonal nature of these businesses;
  • the NHW division is expected to keep performing well, especially in incineration, while storage will be compared against a stronger 2015 basis starting in the second quarter.

These are factors contributing to Séché Environnement’s forecast of slight growth in contributed revenue, at constant perimeter, for 20162.

Definitions:
Contributed revenue: reported revenue less IFRIC 12 revenue and compensation for diverted waste.


IFRIC 12 revenue: investments made for disposed assets and booked as revenue in accordance with
IFRIC 12.


Compensation for diverted waste: compensation received, net of variable costs to cover the additional
costs incurred by Séché Environnement to ensure continuity of public service during asbestos removal
at the Strasbourg-Sénerval incinerator.

Conference call

A conference call presenting Q1 2016 highlights will be held only in French on April 25, 2016 at 6.00pm (Paris).

To attend the call, please dial +33 148 505 080 (conference code: 44 32 06 46 #)
A presentation, in English, will be available on Séché Environnement’s website at 5.45pm (Paris):
http://www.groupe-seche.com/EN/presentation_56.html

Agenda

 

Combined General Shareholders' Meeting

April 28, 2016

Consolidated results at June 30, 2016

September 12, 2016 after market close

About Séché Environnement

Séché Environnement is one of the leading players in the recovery and treatment of all types of waste in France, from both industry and from local communities.

Séché Environnement is the leading independent operator in France. It is uniquely positioned as a specialist in technical risk, at the center of the regulated waste treatment and recovery markets, which have high barriers to entry.

Its facilities and expertise enable it to provide high value-added solutions to its industrial and public authority clients, targeting the challenges of the circular economy and sustainable development requirements such as:

  • recovery or energy recovery of hazardous and non-hazardous waste;
  • all types of treatments for solid, liquid or gaseous waste (thermal, physical-chemical or radiation treatment);
  • storage of final hazardous and non-hazardous waste;
  • eco-services such as pollution remediation, decommissioning, asbestos removal and rehabilitation.

Based on its extensive expertise, Séché Environnement has successfully developed its environmental services business lines in waste management outsourcing markets for its clientele of large communities and major industrial companies both in France and abroad.

Séché Environnement has been quoted on Eurolist by Euronext (compartment B) since November 27, 1997.

It is eligible for equity savings funds dedicated to investing in SMEs and is listed in the CAC Mid&Small and Enternext PEA-PME 150 indexes.

Important notice
This press release may contain information of a provisional nature. This information represents either trends or targets at the date of the press release's publication and should not be viewed as results forecasts or any other type of performance indicators. This information is by nature subject to risks and uncertainties that are difficult to foresee and usually beyond the Company's control, which may imply that expected results and developments differ significantly from announced trends and targets. These risks notably include those described in the Company’s Registration Document, which is available on its website (www.groupe-seche.com). This information therefore does not reflect the Company's future performance, which may differ considerably, and no guarantee can be given as to the achievement of these forward-looking figures. The Company makes no commitment on the updating of this information. More complete information on the Company can be found on its website (www.groupe-seche.com), under Regulated Information. This press release does not constitute an offer of shares or a solicitation in view of an offer of shares in any country whatsoever, including the United States. Distribution of this press release may be subject to the laws and regulations in force in France or abroad. Persons in possession of this press release must be aware of these restrictions and observe them.

1 See “Definitions” paragraph
2 Séché Radioprotection: formerly HPS Nuclear Services, acquired on March 1, 2016 – see press release of March 7, 2016-
3 See press release dated March 7, 2016

Contacts

Séché Environnement
Manuel Andersen, +33 (0)1 53 21 53 60
Head of Investor Relations
m.andersen@groupe-seche.com

Contacts

Séché Environnement
Manuel Andersen, +33 (0)1 53 21 53 60
Head of Investor Relations
m.andersen@groupe-seche.com