Veolia Environnement, the parent company of Veolia Environmental Services (VES), has reported a 15.5% increase in revenue in its half-year figures ending June 2011.
The company reported a total revenue of €16.2bn (£14.1bn) for the period, an increase of 15.5% relative to the re-presented revenue figures for the first half of 2010, when revenue stood at €14.1bn.
According to the company, the increase in revenue is due in part to the growing price of recycled raw materials, which have risen around €155m, and growing activity levels for commercial waste collection and the treatment of hazardous waste in the Environmental Services Division, particularly across continental Europe.
The company added that it had benefited from a number of significant contract wins, including the 25-year Hertfordshire waste PFI, which will generate an estimated cumulative revenue of more than £1.3bn.
It was also reported that free cash flow increased to €155m from -€133m in the first half of 2010.
VES reported a half-year revenue of €4.8bn, an 8.4% increase on the €4.5bn figure for half-year 2010.
UK revenue increased 11.3% for the division, which the company stated was in line with the “ramp-up of integrated contracts as well as improvement in landfill volumes, despite an economic climate which remained difficult and weighed on other activities”.
Veolia Environnement chairman and chief executive Antoine Frérot said the company will now undertake accelerated restructuring activities following a review of operations.
He said: “This will facilitate the achievement of the objective we set, to make Veolia a more reactive and more efficient company given its operational environment. [It will be] focused on a significantly reduced number of countries, with fewer entities and activities, and a clear objective to quickly improve profitability, all while capturing growth opportunities present within our activities.”