Veolia FY16 Profit Down On Weak Revenues; Sees Revenue Growth Ahead

(RTTNews) - French resource management firm Veolia Environnement (VE) reported Thursday that its fiscal 2016 net income - Group share amounted to 382 million euros, down from 450 million euros in 2015.

Current net income-group share increased 10.8% to 610 million euros from 580 million euros last year.

Current EBIT grew 5.2% year-over-year to 1.384 billion euros in 2016. EBITDA improved 2% to 3.06 billion euros.

Revenue declined 2.3% to 24.39 billion euros from last year's 24.97 billion euros. Excluding representation related to IFRIC 12 fixed payments, revenue was down 0.4% at constant exchange rates.

Revenue also improved significantly in the fourth quarter, with 1.9% growth at constant exchange rates.

Further, the company proposed increase in 2016 dividend to 0.80 euro per share, paid in cash.

Looking ahead, for fiscal 2017, the company expects resumption of revenue growth, and stable EBITDA, or moderate EBITDA growth.

For fiscal 2018, the company projects continuation of revenue growth, and resumption of more sustained EBITDA growth. The company also plans more than 300 million euros in cost savings.

For fiscal 2019, the company sees continuation of revenue growth and full impact of cost savings. EBITDA is expected between 3.3 billion euros and 3.5 billion euros, excluding IFRIC 12.