Veolia’s UK and Republic of Ireland operations have reported increased revenue in the first half of 2018, despite a worldwide slump in the price of recycled paper.
The company’s half-year report said revenue in UK and Ireland had grown 4.4% to €1.08bn (£965m) compared with the first half of 2017 because of favourable rates for its PFI contracts, an increase in electricity prices and “good commercial wins with industrial customers”.
It also reported “solid growth” in EBITDA in the UK, due to improved availability of incineration plants and efficiency gains.
The company’s global revenue for its waste businesses grew by 10.9% at constant exchange rates against the first half of 2017.
A fall in recyclate prices led to a negative impact on revenue of 1.1%, “notably due to the fall in paper prices”.
The report said lower recycled paper prices had been offset by higher non-ferrous metal prices in the UK.
Antoine Frérot, Veolia chairman and chief executive, said: “Revenue benefited from the additional efforts we engaged in 2017, growing 6%, along with a notable increase of 4% in waste volumes.
“Results also revealed sustained growth, with EBITDA up 5.8% and current net income Group share excluding capital gains up 13%, thanks to the revenue growth and the cost savings achieved during the first half-year.
“These strong first half results demonstrate once again the relevance of the two levers of our strategy, growth and operational efficiency, and allow us to be confident in the achievement of our objectives for the full year.”