Confirmation of profitable, sustainable
growth
Financial and non-financial achievements
ahead of schedule
2024 to 2026 outlook strengthened
Regulatory News:
Séché Environnement (Paris::SCHP):
2023 Financial Performance
2025 target of "Revenue close to one billion euros"
achieved1:
Contributed revenue of €1,013.5m (€936.0m at constant
scope2)
Continued strategy of targeted acquisitions: scope effect
+€77.5m
Solid organic2 growth confirmed: Contributed revenue up +6% (of
which +9% in France)
Significant increase in operating profitability at constant
scope3
EBITDA at constant scope of €218.4m: +10% (organic) to 23.3%
revenue (vs. 22.6% in 2022
COI at constant scope of €105.1m: +18% (organic) to 11.2%
revenue (vs. 10.2% in 2022)
Financial leverage ratio of 2.7x EBITDA (excluding 2023
acquisitions)
2023 - Non-financial Performance
GHG emissions: 10% reduction target exceeded 2 years
ahead of schedule1 at -11% vs. 2020
GHG avoided: up +29% vs. 2020 with a target of +40% by
2025
Dividend 2023 proposed up to 1.20 euro per share (vs.
€1.10 for fiscal 2022)4
Outlook for 2024 to 2026 on the right track5
Targets for 2024 reinforced
Contributed revenue up organically +5% (vs. contributed revenue
2023) + scope effect of around €60m
EBITDA up organically by +10% to target around €230m (vs.
adjusted EBITDA 2023)
COI up organically by +14% to target around €230m (vs. adjusted
COI 2023)
Financial leverage ratio of 2.7 x EBITDA -excluding external
growth-
Roadmap 2026 confirmed
At the Board meeting held on March 6, 2024 to approve the
financial statements for fiscal year 2023, Chairman Joël Séché
stated:
"Fiscal year 2023 once again confirms the relevance of Séché
Environnement's development strategy in the French and
international sustainable development markets, particularly in the
circular economy and in combating climate change.
For several years now, Séché has been committed to a strategy of
external growth that broadens the range of its offerings and
extends its geographical coverage.
This year, in France, Séché took on new high-tech businesses in
the industrial water cycle, in promising markets driven by
environmental regulations. Internationally, new strategic
acquisitions in Italy, Peru and Namibia have reinforced the Group's
expertise as a specialist in hazardous waste and its position as an
operator of choice for industrial customers in these regions.
With its activities closely aligned with the European green
taxonomy, Séché offers its industrial and public-sector customers a
local product range that meets the majority of their environmental
sustainability challenges.
The solid organic growth posted by the Group in 2023 confirms
the sales momentum and positive trend observed in most business
lines in recent years, particularly in France.
Two years ahead of target, contributed revenue is exceeding the
symbolic billion-euro mark!
The high level of operating performance achieved on the
historical scope demonstrates Séché's ability to rapidly assimilate
the acquisitions of recent years, to immediately implement
industrial and commercial synergies with the Group's other business
lines, and to raise them to its profitability standards.
Extra-financial performance is not to be outdone following the
SBTi's approval of its Climate trajectory in line with the Paris
Agreements, Séché is already on track in 2023 to meet its 2025
target for reducing its greenhouse gas emissions. At the same time,
the Group has also significantly increased the amount of greenhouse
gases avoided at customer sites by its recycling activities,
putting it in a good position to meet its 2025 target.
New goals have been set, outlining solid prospects for growth,
increased operating profitability and free cash flow generation by
2026.
On the extra-financial front, the intensification of current
action plans and the implementation of new flagship projects will
enable us to continue building a Group that is even more respectful
of the environment, increasingly restrained in its consumption and
more moderate in its impact.
These are all indicators that support Séché Environnement's
model of profitable, sustainable growth, and all ways in which it
can accelerate both its own environmental transition and its
development. "
Selected Financial Information
Consolidated data at December 31, 2023
In millions of euros
2022
2023
Gross change
Organic change
Revenue (reported)
972.7
1088.9
+11.9%
+5.8%
o/w contributed revenue
895.3
1013.5
+13.2%
+6.4%
EBITDA
201.6
217.7
+8.0%
+10.1%
As % of contributed revenue
22.6%
21.5%
-
-
Current operating income
91.3
101.2
+10.8%
+17.8%
As % of contributed revenue
10.2%
10.0%
-
-
Operating income
87.0
91.4
+5.1%
+12.2%
Net financial income
(18.5)
(22.2)
+20.0%
-
Income tax
(19.2)
(17.8)
(7.3)%
-
share earnings from associated
businesses
(1.3)
(1.3)
ns
-
Consolidated net income
47.9
50.0
+4.4%
+20.0%
Of which attributable to
non-controlling interests
(3.3)
(2.2)
(33.3)%
-
Of which attributable to Group
44.6
47.8
+7.2%
+23.2%
Diluted earnings per share (in
€)
5.72
6.13
+7.2%
+23.2%
Recurring operating cash flow
179.1
190.2
+6.2%
Net industrial investment paid
out
95.7
88.7
(7.3)%
Operating free cash flow
78.4
101.3
+29.2%
Cash and cash equivalents
126.2
162.2
+28.5%
Net financial debt (IFRS)
587.4
641.9
+9.3%
Financial leverage ratio
2.8x
2.9x
+0.1x
COMMENTS ON CONSOLIDATED FINANCIAL STATEMENTS AT DEC. 31,
2023
MAIN NON-FINANCIAL RESULTS 2023
In 2023, Séché Environnement pursued its strategy of profitable
growth, combining dynamic internal growth with a targeted external
growth strategy.
In the buoyant environmental transition and sustainable
development markets, the Group has maintained solid growth within
its historical scope and successfully finalized the integration of
new activities acquired at the end of 2022, notably those related
to the industrial water cycle.
The Group has also made several new acquisitions in France and
abroad, rounding out its range of offerings as well as its regional
coverage in the heart of strategic markets.
At the end of the year, Séché Environnement's financial and
non-financial performance enabled it to achieve by 2023 several of
the financial and non-financial targets set for 20256.
The Group is therefore confirming its new financial and
non-financial roadmap to 2026.7
Continuation of acquisition strategy - Other scope
effects
In France, Séché Environnement finalized the acquisition of
Assainissement Rhône-Isère (ARI), since renamed Séché
Assainissement Rhône-Isère ("Séché ARI"). Based in Bonnefamille
(Isère) and present throughout the Auvergne-Rhône-Alpes region,
this company is authorized to operate on Seveso-classified sites,
and specializes in sanitation, industrial cleaning and
high-pressure hydrocleaning.
Internationally, the Group has successively acquired:
- Furia Srl (Italy)8: Furia is an Italian company
specializing in the collection, sorting, consolidation, and
recovery of hazardous and non-hazardous industrial waste. The
Company also generates 40% of its revenue from soil remediation and
site decontamination activities.
- Rent-A-Drum (Namibia)9: Rent-A-Drum is the leading waste
management company in Namibia. It offers its large corporate
customers a wide range of services thanks to its integrated waste
recovery and treatment offering.
- Essac (Peru)10: Essac is one of Peru's leading emergency
responders, specializing in industrial fire emergencies. The
company also provides training and team learning in industrial
risks and regulations, risk prevention and industrial site
audits.
During the period, the Group also successfully finalized the
transfer of a portfolio of industrial water cycle activities
acquired from the Veolia Group at the end of November 2022. The
assets handed over include contracts with over 120 manufacturers
and a network of 20 agencies in France. This handover is
accompanied by the transfer of some 350 employees specializing in
the industrial water cycle.
The transfer operations were completed at the end of 2023 and
gave rise to significant non-recurring expenses, in particular
those relating to the remuneration of Groupe Veolia for several
commercial and administrative management services it continued to
provide during the transfer period.
Financial performance in line with 2024-2026 roadmap
objectives
Confirmation of organic growth momentum, particularly in
France
At December 31, 2023, Séché Environnement posted contributed
revenue of €1,013.5m, up +6.4% at constant scope and exchange rates
compared with 2022.
Over the period, business was driven by markets in France (73.9%
of contributed revenue), where the Group confirmed its continued
sales momentum in most of its markets, while internationally, sales
varied according to geographical region and subsidiary.
France: robust sales in positively oriented markets
As an integrated operator in the circular economy and
environmental services sectors, Séché Environnement benefits in
France from markets that are sustainably driven by regulatory
changes promoting the circular economy, the fight against climate
change and the challenges of ensuring the environmental safety of
industrial infrastructures.
In 2023, the Group experienced buoyant industrial markets,
particularly in areas linked to circular economy and services,
while the extension of its offering in particular with the
integration of new Services businesses - such as industrial water
management - has fostered the implementation of intra-Group
industrial and commercial synergies that have boosted the Group's
growth momentum.
Contracts with local authorities confirmed their resilience in
an environment characterized by high utilization of waste recovery
and treatment facilities and the continuation of a very positive
price dynamic.
In addition, the Group benefited from a significant rise in
energy sales prices, in line with the full effect of the indexation
of its energy sales contracts in 2022 (steam sales in
particular).
Overall, Séché Environnement posted very substantial organic
growth in France, up 9.4% on the previous year, illustrating the
relevance of Séché Environnement's commercial offering to the
challenges of environmental safety and sustainability for economic
players, as well as to short-term imperatives in terms of access to
resources, materials and energy.
International: performance varies by subsidiary
Internationally, Séché Environnement has a presence in targeted
geographical areas through some of its businesses, giving the Group
greater exposure to certain markets and/or local customer bases,
and making the contribution of the various subsidiaries less
homogeneous.
In 2023, most international markets remained buoyant,
underpinned by the good level of activity of local industrial
customers, as illustrated by the remarkable performance of South
American subsidiaries and the solid contribution of European
subsidiaries.
However, some subsidiaries reported a decline in business
compared with their particularly high levels of activity in 2022,
such as in South Africa, where Spill Tech had recorded
exceptionally large-scale environmental emergency contracts, or
Solarca, a specialist in chemical cleaning, which had benefited
last year from a strong recovery in its order book following the
pandemic years.
The international scope also recorded a strongly negative
exchange rate effect, of (€16.3)m vs. a positive exchange rate
effect of +€4.5m in 2022, essentially due to the deterioration in
the parity of the South African Rand.
As a result, revenue is slightly down on 2022, by (0.8)% at
constant scope and exchange rates.
Operating income up: strong contribution from historical
scope
The 2023 financial year sees a further increase in consolidated
operating income, particularly for the historical scope in France,
where operating profitability, both gross and current, will be
significantly higher than in 2022.
As a result, earnings before interest, taxes, depreciation,
and amortization (EBITDA) reached €217.7m, or 21.5% of
contributed revenue, up 8.0% on a reported basis (vs. €201.6m, or
22.6% of contributed revenue in 2022).
At constant scope, it came to €218.4m, a significant
organic increase of +10.1% to 23.3% of contributed revenue (vs.
22.6% of contributed revenue a year ago).
The increase in gross operating profitability reflects the solid
contribution of the France scope:
- EBITDA in France rose organically by +18.8% to €176.7m,
or 25.7% of contributed revenue, marking a significant improvement
in gross operating profitability compared with last year (23.6% of
contributed revenue).
In addition to favorable commercial effects (volume and price
effects), EBITDA in France reflects the positive impact of the
industrial efficiency policy on tool availability and
organizational productivity.
This further increase in gross operating profitability to
historically high levels also illustrates Séché Environnement's
ability to rapidly onboard the new scopes acquired in recent years
and to raise their profitability to Group standards.
This performance is all the more remarkable in that the increase
in this balance is limited in 2023, to the tune of (€9.4)m by the
cap on infra-marginal profits of electricity producers introduced
by the Finance Law for 2023 (with a negative impact of €5.8m from
2022), reducing gains on electricity sales to +€2.6m.
- International EBITDA fell organically by -15.9% to
€41.7m, or 16.8% of contributed revenue (vs. €52.9m to 19.9% of
contributed revenue in 2022).
The lower contribution from international activities is mainly
due to delays in activity at certain subsidiaries (notably Spill
Tech and Solarca) given that the gross operating profitability of
the international scope in 2022 had been boosted by the
contribution of major environmental emergency contracts on an
exceptional scale, amounting to €5m.
Current operating income (COI) came to €101.2m, or 10.0%
of contributed revenue, up 10.8% on a reported basis compared to
2022 (€91.3m, or 10.2% of contributed revenue).
At constant scope, growth continued strong (+17.8% at
constant exchange rates) to €105.1m, or 11.2% of contributed
revenue. This increase in current operating profitability reflects
the solid performance of the France scope:
- Current operating income for France reached €85.9m, or
12.5% of contributed revenue (vs. 9.8% of contributed revenue in
2022, reflecting organic growth in EBITDA, mainly offset by a
moderate increase in depreciation and provisions, in line with
tight control over capital expenditure and the quality of the
customer receivables portfolio.
- International current operating income came to €19.2m,
or 7.7% of contributed revenue (vs. €29.6m, or 11.1% of contributed
revenue in 2022). This decline is essentially due to the weaker
performance of International EBITDA at constant scope and exchange
rates.
Operating income reached €91.4m, or 9.0% of contributed
revenue, up +5.1% on a reported basis and +12.2% at constant scope
and exchange rates compared with last year.
This change reflects the increase in operating income, mainly
offset by impairments on intangible assets of (€7.1m). These
impairments are mainly due to the non-utilization of developments
carried out as part of the roll-out of the French ERP following
tests carried out by pilot companies in the second half of
2023.
Further increase in net income, Group share - Proposed
dividend up
Net financial income
At December 31, 2023, net financial income stood at (€22.2m),
compared with (€18.5m) at the end of 2022, up 20.0%
year-on-year.
This change mainly reflects:
- The increase in the cost of gross indebtedness, to (€26.1m) vs.
(€17.8m) a year ago, due to a rise in the cost of gross debt to
3.49% vs. 2.56% in 2022, and the increase in average gross
financial debt over the period (see below).
- The improvement in "Other financial income and expenses", at
+€0.9m vs. (€1.5)m in 2022, (€1.5m) in 2022, mainly due to the
recognition of accretion income on the provision for thirty-year
risk, amounting to +€2.3m (vs. an expense of (€0.5m) a year
ago).
Income tax
At December 31, 2023, "Income taxes" amounted to (€17.8m) vs.
(€19.2m) in 2022, giving an effective tax rate of 25.8% vs.
28.1%.
Consolidated net income
After accounting for the share in net income of associated
companies, i.e. (€1.3m) at December 31, 2023, an amount identical
to that for 2022, net income for the consolidated group came to
€50.0m vs. €47.9m in 2022.
Net of non-controlling interests of (€2.2m), Group share of
net income came to €47.8m, or 4.7% of contributed revenue at
December 31, 2023 (vs. €44.6m, or 5.0% of contributed revenue in
2022).
Net income per share came to €6.13 vs. €5.72 at December
31, 2022.
The dividend will be raised from €1.10 to €1.20 per
share, subject to approval by the Annual General Meeting of
Shareholders on April 26, 2024. It will be withdrawn on July 8,
2024 for payment on July 10, 2024.
Confirmation of solid financial position
Free operating cash flow came to €101.3m, up 29.2%
compared with 2022 (€78.4m), with an EBITDA-to-cash conversion rate
of 47% (vs. 39% a year ago). This positive trend is mainly due to
tight control over capital expenditure and a significant reduction
in working capital requirements.
Booked capital expenditure totaled €97.2m, or 9.6% of
contributed revenue (vs. €105.0m in 2022, or 11.7% of contributed
revenue):
- Recurring capital expenditure (or maintenance) totaled €68.2m,
or 6.7% of contributed revenue (vs. €57.4m in 2022, i.e., 6.4% of
contributed revenue), with the slight year-on-year increase mainly
due to periodic "major maintenance and repairs" expenses.
- Non-recurring investment (or development investment) came to
€29.0m, or 2.9% of contributed revenue (vs. 47.6m in 2022, or 5.3%
of contributed revenue), and mainly concern growth investments in
the Circular Economy and Services businesses.
The change in working capital requirement stood at
(€6.3)m, a sharp improvement on the (€-25.1)m recorded in 2022,
illustrating the success of the Group's efforts to return to a more
normative situation with regard to business growth, and despite the
consequences of the cyber-attack in spring 2023 on billing and
collection management.
Cash balance amounted to €162.2m, vs. €126.2m a year
earlier, a +28.5% variation reflecting the good level of free cash
flow generated in 2023 - excluding acquisitions. The liquidity
position is solid, at €332.2m at December 31, 2023 vs. €313.1m
by the end of 2022.
Net financial debt stood at €641.9m vs. €587.4m at
December 31, 2022. This +€54.5m increase reflects:
- (€43.3m) to reduce the Group's debt at constant scope and
before non-cash effects.
- +€35.5m: a non-cash change - at constant scope – mainly linked
to new IFRS 16 contracts.
- +€62.3m, the scope effects (disbursements for the fair value of
the shares and financial leases of acquired companies).
Financial leverage ratio stood at 2.9 times EBITDA vs.
2.8 times a year earlier. Excluding acquisitions completed by the
end of 2023, it would have been 2.7 times EBITDA, in line with
Group targets.
Solid non-financial performance in 202311
In fiscal 2023, Séché Environnement stepped up its non-financial
strategy, particularly in the areas of combating climate change,
water and energy efficiency, and protecting biodiversity.
In particular, the Group has:
- Obtained SBTi approval of its climate trajectory.
In January 2023, the Science Based Target initiative (SBTi)
approved Séché Environnement's GHG emissions reduction target. SBTi
thus recognizes that the target set by Séché Environnement is based
on scientific criteria and in line with the Paris Agreement on
combating global warming, which aims to limit global warming to 2°C
by 2050. Séché Environnement's decarbonization strategy aims to
achieve an absolute reduction of -25% in direct greenhouse gas
emissions (scope 1) and indirect emissions linked to energy
consumption (scope 2) between 2020 and 2030.
- Confirmed the high rates of eligibility and alignment of its
activity with the European green taxonomy.
Séché Environnement has a sustainable business model as defined
by the European green taxonomy.
On the basis of the six delegated acts published by the European
Commission on June 5, 2023, the percentages of eligibility and
alignment of the company's activities with the achievement of the 6
environmental objectives reach 84% and 70% of revenue respectively
at December 31, 2023.
These figures are well above the average for economic activities
in Europe (estimated alignment at 20%)12, illustrating the
company's contribution to the greening of the economy.
- Achieved by 2023 the GHG emissions reduction target set for
its 2025 Climate trajectory.
With greenhouse gas emissions reduced to just 555ktCO2eq in
2023, Séché Environnement is two years ahead of schedule in meeting
the greenhouse gas emissions reduction target set in 2021 for
2025.
This indicator is included as an impact criterion for its
November 2021 bond issue, i.e., a 10% reduction in scope 1 and 2
greenhouse gas emissions for the France 2020 scope.
With a performance of +29% in 2023 in terms of greenhouse gases
avoided, Séché Environnement is also well on the way to achieving
its second objective set by its Climate strategy: a +40% increase
in emissions avoided by materials recovery activities in the France
2020 scope.
2024 OUTLOOK ON TRACK - OBJECTIVES CONFIRMED
ROADMAP TO 2026 REINFORCED
Séché Environnement confirms its financial and non-financial
roadmap for 2024 to 202613.
A solid position in the sustainable growth markets of
environmental transition and sustainable development
Séché Environnement is active in the highly regulated French and
international environmental transition and sustainable development
markets, and benefits from the trend towards tighter regulatory
constraints imposed on economic players to reduce their
environmental footprint.
Séché's activities in fact address the long-term issues facing
economic players in terms of ecological transition, and in
particular climate change, the depletion of natural resources and
the protection of biodiversity.
The Group's activities in rare resource reuse and the production
of recovered energy also provide solutions to the short-term
challenges faced by local communities and manufacturers in terms of
access to raw materials, water and energy. These resources are
regenerated and low in carbon, made available locally and at
competitive prices.
For all these reasons, they boast strong visibility, sustained
growth, high and rising operating margins, and proven
resilience.
Séché backs up this strategy of organic growth with an active
policy of external growth, both in France and internationally,
where the Group has taken leading commercial positions in certain
geographical areas, such as Northern Italy and Southern Africa.
The breadth of its offering, the resulting cross-selling
synergies, and the regulatory changes impacting its markets, enable
the Group to anticipate organic growth over the period well in
excess of forecast GDP growth rates in the geographical areas in
which it operates.
Continued strong organic growth over the 2024 - 2026
period.
In France, the Group's business should be buoyed by the dynamic
markets of the Circular economy and, above all, Industrial
Services.
In Circular economy markets, Séché will focus on developing its
capacities in the field of energy recovery from non-hazardous waste
against a backdrop of a trend of declining treatment capacity, and
material recovery from hazardous waste.
In the Services markets, Séché will benefit from a buoyant
regulatory environment and from the growth dynamic resulting from
its new offering in the industrial water cycle businesses and from
the expected cross-fertilization with the Group's other activities
and customer bases. The Group will also benefit from the growth
momentum of its "global offers", a delegated management service for
industrial customers.
Internationally, the Group is confident in its ability to
maintain solid growth, and in particular:
- In Italy, where the new Mecomer-Furia group offers powerful
commercial and industrial synergies, making Séché one of the
leading operators in the hazardous waste market.
- In Southern Africa (South Africa and Namibia), where the Group
offers the most comprehensive range of waste management and
environmental safety solutions for industrial customers through its
subsidiaries with complementary skills: Interwaste, Spill Tech and
Rent-A-Drum.
The Group is also confident in its ability to take advantage of
the positive trend in its Latin American markets, where it has
strengthened its position in emergency environmental services with
the recent acquisition of Essac in Peru.
For the 2024 financial year, Séché Environnement
anticipates organic growth in contributed revenue of around 5%, to
which will be added the contribution of the scopes acquired in 2023
of around €60m, for contributed revenue of around €1,100m.
By 2026, and on this basis, Séché anticipates contributed
revenue of around €1,200m, representing an average organic growth
rate of around +5% over the period.
Improvement in gross and recurring operating profitability
between 2024 and 2026
The Group will work across all scopes to pursue its strategy of
industrial efficiency, based on rigorous requirements in terms of
safety, regulatory compliance and operational excellence.
In this context, the Group is implementing a productivity plan
which enables it to anticipate:
- Improvement in the utilization rate of its industrial and
logistics facilities.
- Control of industrial investment: this should stabilize over
the period at around the levels reached in 2023, i.e. between €100
and €110m per year.
In 2026, the normalized investment rate would be around 9% of
contributed revenue (vs. 10% previously), of which around 3%
relates to maintenance investment, around 2% to safety and
regulatory capital expenditure (i.e. a total of around 5%
maintenance capital expenditure), and around 4% to development
capital expenditure.
Séché will implement other levers to boost its gross and current
operating profitability, such as optimizing the profitability of
its new business scopes (particularly in the industrial water
cycle), pursuing its industrial efficiency plan or controlling its
operating expenses through a savings plan of the order of €20m over
the period (at constant scope).
Lastly, the prevalence of Services activities in the business
mix should lead to faster growth in current operating income than
EBITDA over the period.
For 2024, Séché Environnement anticipates EBITDA of
around €230m and current operating income of around €105m.
The Group has targets for 2026 of:
- EBITDA of between €265 and €275m, i.e. gross operating
profitability of between 22% and 23% of contributed revenue.
- A current operating income of between €132 and €144m, i.e. an
operational profitability level of between 11% and 12% of
contributed revenue.
Maximized free cash flow generation.
Séché strive to maximize its free cash flow generation14 by
controlling its investments around their current level,
neutralizing its change in working capital requirements on average
over the period, and an appropriate dividend policy.
For 2024, Séché Environnement anticipates a financial
leverage ratio of less than 2.7 X EBITDA (excluding
acquisitions).
Over the period 2024 to 2026, the Group intends to
generate free cash flow of at least €250m over the period 2024 to
2026 (excluding acquisitions).
New 2026 non-financial commitments.
On the strength of its ability to combine economic growth with a
reduction in the environmental impact of its customers, Séché
Environnement has set itself new non-financial objectives for
2026:
- Pursue the decarbonization of its activities: -13%
greenhouse gas emissions15 (in line with the target approved by
SBTi in early 2023).
- Consolidate its ability to decarbonize its customers by
increasing material recycling activities: +50% of greenhouse gases
avoided.
- Improving energy efficiency: -12% reduction in energy
consumption.
- Increasing energy resilience: 310% energy
self-sufficiency.
- Reduce the water consumption of its activities: -13%
reduction in water consumption.
- Preserving biodiversity: 80% progress on its Act4Nature
action plan.
These various objectives will help to reduce the environmental
impact of Séché Environnement, as well as that of its customers,
reinforcing the Group's position as a key player in the
environmental transition.
Webcast presentation of results March 12, 2024 at 8:30 a.m.
sharp
Login to the Séché Environnement home page
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Next release
1st quarter 2024 sales: April 23, 2024 after market close
Combined General Meeting of Shareholders April 26, 2024
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 environmental transition of
industries and territories and to the protection of the living
world for nearly 40 years. Séché Environnement, a French
family-owned industrial group, 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 50 industrial sites in France. With over 5,700 employees,
including 2,500 in France, Séché Environnement generated revenue of
nearly €900m in 2022, 30% of which from its international
operations.
Séché Environnement has been listed on the Euronext Eurolist
(Compartment B) since November 27, 1997. It is included in the CAC
Mid&Small and EnterNext Tech 40 indexes. ISIN Code: FR
0000039139 - Bloomberg: SCHP.FP - Reuters: CCHE.PA
Find out more at www.groupe-seche.com
EXTRACTS FROM THE 2023 MANAGEMENT REPORT16
Comments on consolidated income and results at December 31,
2023
Comments on business trends in 2023
Reported revenue and contributed revenue - Scope effect
At December 31, 2023, Séché Environnement reported
consolidated revenue of €1,088.9m, vs. €972.7m a year
earlier.
It includes non-contributed revenue of €75.4m (vs. 77.4m at
December 31, 2022) which breaks down as follows:
At December 31
2022
2023
Investments "IFRIC 12"17
21.7
15.6
TGAP18
55.7
59.8
Non-contributed revenue
77.4
75.4
Consolidated data in m€.
Net of non-contributed revenue, contributed revenue stood
at €1,013.5m at December 31, 2023, up +13.2% from December 31, 2022
(€895.3m).
It includes a scope effect of €77.5m which breaks down as
follows:
- All'Chem (France), brought in on July 1, 2022: €8.5m.
- Séché Assainissement 34 (France), brought in on July 1, 2022:
€2.1m.
- Séché Traitement Eaux Industrielles (France), brought in on
December 1, 2022: €49.1m.
- Séché Assainissement Rhône-Isère (France), brought in on July
1, 2023: €0.7m.
- Furia (Italy), brought in on October 1, 2023: €15.8m.
- Essac (Peru), brought in on October 1, 2023: €1.3m.
NB: In the second half of 2023, Séché Environnement acquired the
Namibian company Rent-A-Drum19, which will be included in the
consolidated scope from January 1, 2024.
At December 31, 2023
France
International
Total
Hazardous Waste division
57.6
17.1
74.7
Non-Hazardous Waste division
2.8
-
2.8
Total scope effect
60.4
17.1
77.5
At constant scope, contributed sales came to €936.0m, up
+4.6% on December 31, 2022.
Over the period, the forex effect was strongly negative,
at (€16.3)m (vs. a positive currency effect of +€4.5m in 2022),
mainly due to the deterioration in the parity of the South African
Rand (ZAR) against the Euro.
On a basis of constant scope and exchange rates, growth
in contributed revenue is +6.4% compared with 2022.
Analysis of contributed revenue by geographic area
At December 31
2022
2023
Gross change
In €m
As a %
In €m
As a %
As a %
Subsidiaries in France
629.3
70.3%
748.6
73.9%
+19.0%
o/w scope effect
-
-
60.4
-
-
International subsidiaries
266.0
29.7%
264.9
26.1%
-0.4%
o/w scope effect
-
-
17.1
-
-
Total contributed revenue
895.3
100.0%
1013.5
100.0%
+13.2%
Consolidated data at current exchange
rate. At constant exchange rates, sales to December 31, 2022 would
have been €879.0m, expressing a negative currency effect of
(€16.3m).
Fiscal 2023 confirmed a high level of activity in France, while
the situation in International sales varied from one region to
another, with a strongly negative foreign exchange effect due
mainly to the deterioration in the Rand's parity against the
Euro:
- In France, contributed revenue rose significantly
(+19.0%), to €748.6m vs. €629.3m at December 31, 2022.
This sharp rise includes a €60.4m scope effect (see above).
At constant scope, contributed revenue generated by
French subsidiaries came to €688.2m, marking a significant organic
increase of +9.4% over the period.
Séché Environnement benefited from industrial and local
authority markets sustained by its Services and Circular Economy
activities.
Th.is robust sales momentum enabled the Group to benefit from
favorable volume and price effects, particularly in the
non-hazardous waste sector, where the high level of utilization of
permits favored price increases.
The waste-to-energy business benefited particularly from the
positive indexation of energy, steam and electricity sales prices
which contributed to additional sales of around +€12m in 2023
compared with 2022 at constant volumes (before taxation20).
Revenues in France accounted for 73.9% of total contributed
revenue at December 31, 2023 (vs. 70.3% one year earlier).
- Internationally, contributed revenue rose to €264.9m vs.
€266.0m at December 31, 2022, a change of -0.4% on a reported
basis.
International sales include a scope effect of +€17.1m (see
above). It also recorded a strongly negative currency effect of
(€16.3m).
At constant scope, international sales came to €247.8m,
representing organic growth of -0.8% over the period, with this
virtual stability reflecting different situations in the various
subsidiaries and geographical areas:
- The Europe zone - excluding Solarca - (revenue: €83.6m, up
+2.7%) reflects the increase in business at Mecomer - the hazardous
waste platform business in Italy, which is benefiting from the
ramp-up of its new capacities - and the positive trend in business
at UTM in Germany, while Valls Quimica - a solvent reuse business
in Spain - posted a decline in sales as a result of the
subsidiary's refocusing on higher value-added markets in the
circular economy applied to chemical products.
- South Africa zone (revenue: €95.4m, down -12.3%): Interwaste
reported a slight increase in sales (+1.4%), this modest rise being
due to the postponement of new business to the 3rd quarter, which
was not fully offset at the end of the year, while Spill Tech's
sales contracted by -26.0% in the face of a particularly strong
year 2022, characterized by exceptionally large contracts.
- Latin America zone (Revenue: €42.5m, an increase of +47.0%)
showed a strong rebound on buoyant markets, particularly in the
Services business in Peru, and at a time when the period is being
compared with the high level of activity in 2022 due to
exceptionally large-scale environmental emergency contracts.
- Solarca - Europe and Rest of World - (Revenue: €26.4m - down
-14.3%) was affected by construction site delays at the start of
the year, which were not offset by improved sales momentum in the
second half. Moreover, the year compares with the strong base of
fiscal 2022, which benefited from a record order book after the
pandemic years.
Revenue generated by international subsidiaries represented
26.1% of total contributed revenue at December 31, 2023 (vs. 29.7%
one year earlier).
Analysis of contributed revenue by activity
At December 31
2022
2023
Gross change
In €m
As a %
In €m
As a %
As a %
Services
405.9
45.3%
464.8
45.9%
+14.5%
o/w scope effect
-
-
53.2
-
-
Circular economy and
decarbonization
286.0
32.0%
341.0
33.7%
+19.2%
o/w scope effect
-
-
24.3
-
-
Hazard management
203.4
22.7%
207.7
20.5%
+2.1%
o/w scope effect
-
-
-
-
-
Total contributed
revenue
895.3
100.0%
1013.5
100.0%
+13.2%
Consolidated data at current exchange
rate
Growth was driven by activities linked to the Circular economy
and decarbonization, as well as Services.
The Services business posted sales of €464.8m at December
31, 2023, up 14.5% on a reported basis.
This increase includes a +€53.2m scope effect linked to the
contribution of businesses acquired in the wastewater treatment and
industrial effluent management markets, as well as the onboarding
of Essac (see above).
At constant scope and exchange rates, Services sales rose
by +5.7% year-on-year, to €411.6m. They are:
- In France (revenue: €259.1m, an increase of +13.9%), the
dynamic performance of Key Account Services, especially the
"comprehensive offerings" that meet the growing needs of industrial
customers for outsourcing of their sustainable development issues,
and the positive trend in Environmental Services (pollution
control, emergency response, etc.)
- Internationally (Revenue: €152.5m, down -5.7%): the decline of
Spill Tech due to a particularly strong comparison base in 2022,
and to a lesser extent Solarca, which last year benefited from a
particularly full order book after the pandemic years.
Services accounted for 45.9% of contributed revenue at December
31, 2023 (vs. 45.3% one year earlier).
The Circular Economy and Decarbonization businesses
recorded sales of €341.0m at December 31, 2023, up 19.2% on a
reported basis.
This increase includes the pro rata part year contribution of
the new scopes, namely All'Chem in France and Furia in Italy,
amounting to +€24.3m.
At constant scope, organic sales growth was +10.7%, to
€316.7m.
This increase reflects:
- In France (revenue: €230.6m, an increase of +11.1%), the
positive trend in materials recovery activities, boosted by the
implementation of regulations linked to the circular economy, and
in energy recovery activities, buoyed by rising energy prices. It
should be noted that sales of energy include €9.4m (vs. €5.8m in
2022) of proceeds from electricity sales at prices in excess of
€175 per MWh, taxed 21 and recorded in the same amount under
"Taxes".
- Internationally (Revenue: €86.1m, an organic increase of
+10.0%), the robust performance of Mecomer in Italy and UTM in
Germany.
Circular economy and decarbonization activities accounted for
33.7% of sales at December 31, 2023 (vs. 32.0% one year
earlier).
Hazard Management activities totaled €207.7m, up 2.1% on
a reported basis and at constant exchange rates:
- In France, these activities grew by +2.3% to €198.5m.
They mainly benefited from favorable price effects in markets
characterized by a good level of utilization of thermal treatment
facilities in the hazardous waste sector, and saturation of permits
in the end-of-life waste management business in the non-hazardous
waste sector.
- Internationally, at €9.2m, these activities posted a
slight organic decline of -2.0% at current exchange rates and -2.8%
at constant exchange rates, due to the less dynamic markets for
hazardous end-of-life waste in Latin America, supported in 2022 by
exceptionally large contracts.
Hazard Management activities accounted for 20.5% of contributed
revenue at December 31, 2023 (vs. 22.7% one year earlier).
Analysis of contributed revenue by sector
At December 31
2022
2023
Gross change
In €m
As a %
In €m
As a %
As a %
Hazardous Waste division
568.8
63.5%
686.3
67.7%
+20.7%
o/w scope effect
-
-
74.7
-
-
Non-Hazardous Waste division
326.5
36.5%
327.2
32.3%
+0.2%
o/w scope effect
-
-
2.8
-
Total contributed revenue
895.3
100.0%
1013.5
100.0%
+13.2%
Consolidated data at current exchange
rate
The Hazardous Waste (HW) division generated sales of
€686.3m, up sharply by 20.7% on December 31, 2022.
The division recorded a scope effect of €74.7m (see above).
At constant scope, organic growth for the division was
+8.9%, driven by dynamic industrial markets in France:
- In France, the sector reported sales of €418.1m, up
+11.5% on FY 2022. Over the period, the division was buoyed by its
Circular economy activities (materials and, above all, energy
recovery) and its Services activities (comprehensive offerings,
environmental emergency).
- Internationally, sales totaled €193.5m, an organic
increase of +3.8% on the previous year. This trend reflects the
positive trend in European recovery markets, offset by the downturn
in Services activities outside Europe (notably Spill Tech and
Solarca).
The Hazardous Waste division will account for 67.7% of
contributed revenue in 2023 vs. 63.5% a year earlier)
The Non-Hazardous Waste (NHW) division posted sales of
€327.2m, stable compared to 2022 (+0.2% on a reported basis).
This increase includes a scope effect of €2.8m (see above).
At constant scope, organic growth for the division was
+2.2%, reflecting:
- In France (revenue up +6.2% to €270.0m), significant
growth in activities linked to the Circular economy (notably energy
recovery, boosted by rising energy prices).
- Internationally (revenue down 14.3% organically to
€54.4m), the one-off decline in non-hazardous waste business in
South Africa.
The non-hazardous waste division will account for 32.3% of
contributed revenue in 2023, vs. 36.5% a year earlier).
Comments on consolidated results in 2023
EBITDA
At December 31, 2023, EBITDA stood at €217.7m, or 21.5% of
contributed revenue, up +8.0% year-on-year on a reported basis (vs.
€201.6m, or 22.6% of contributed revenue a year earlier).
The scope effect had a negative impact of (€0.7)m, while
exchange rates had a negative impact of (€3.3)m.
On a constant scope, EBITDA rose organically by 10.1%
over the period to €218.4m, or 23.3% of contributed revenue.
France was the main contributor to this increase. The increase
in EBITDA (+€16.8m) essentially reflects:
- Negative volume and mix effects for (€12.7m): the French scope
posted positive volume and mix effects (+€3.4m), while
international volumes were impacted by lower activity in the
Services businesses (see above).
- A positive price effect of +€53.9m, mainly due to the strong
contribution of the French scope (+€57.2m), with the favorable
price dynamic underpinned by the high level of tool utilization
(see above).
Partially offset by changes in:
- Variable operating expenses (+€5.6m): Note the positive
contribution from international operations (+€8.0m), as the fall in
variable costs accompanied the drop in volumes in this scope.
- Fixed costs (+€18.8m), mainly due to increases in maintenance
costs and personnel expenses in France, while fixed costs are
perfectly under control internationally.
Analysis of EBITDA by geographic scope
At December 31
2022
2023
In €m
Consolidated
France
International
Consolidated
France
International
Contributed revenue
895.3
629.3
266.0
1013.5
748.5
265.0
EBITDA
201.6
148.7
52.9
217.7
174.1
43.6
% of contributed revenue
22.6%
23.6%
19.9%
21.5%
23.3%
16.5%
Consolidated data at current exchange
rate
For each geographic scope, the main changes were:
- In France, EBITDA totaled €174.1m, up +17.0% to 23.3% of
contributed revenue (vs. €148.7m, or 23.6% of contributed
revenue).
This increase includes a scope effect of (€2.6)m corresponding
to the prorata temporis contribution of activities consolidated in
2022 and 2023.
At constant scope, EBITDA in France came to €176.7m, an
organic increase of +18.8% compared with 2022, taking it to 25.7%
of contributed revenue.
The rise in gross operating profitability to historically high
levels illustrates the Group's ability to rapidly integrate new
activities and raise their profitability to its best standards.
It mainly results from:
- Positive volume and mix effects, for +€3.4m, resulting mainly
from the industrial efficiency policy on tool availability and
process efficiency (logistics in particular).
- A positive price effect of +€57.2m, linked to the high
utilization rate of our industrial facilities and the dynamic trend
in energy retail prices during the year.
- A moderate rise in variable operating expenses (+€13.6m),
mainly due to subcontracting expenses, whereas the period was
characterized by a reduction in the impact of energy purchases
compared with the previous year. It should be noted that the drop
in volumes in the non-hazardous final waste management business was
accompanied by a significant reduction in variable costs.
- An increase in fixed costs (+€18.8m), reflecting higher
maintenance costs and higher personnel costs due to the increase in
the workforce and the Group's determination to support its
employees in the current inflationary environment.
- The neutralization, by means of property tax accruals, of the
impact of the cap on electricity sales prices for (€9.4m) vs.
(€5.8m) in 2022.
- Internationally, EBITDA came to €43.6m, or 16.5% of
contributed revenue.
It includes a scope effect of +€1.8m linked to the contributions
of Furia and Essac over the last 3 months of the year. The currency
effect was a negative €3.3m.
At constant scope, EBITDA came to €41.7m, down
organically by (15.9)% to 16.8% of contributed revenue (vs. €52.9m,
or 19.9% of contributed revenue in 2022). This change of (€11.1m)
mainly reflects:
- Negative volume and mix effects of (€16.1m) due to lower sales
in service businesses (notably Spill Tech and Solarca).
- Stable price effects excluding currency effects.
- Variable operating expenses down by (€8.0m), reflecting lower
volumes in the services business.
- Stable fixed costs.
Current operating income
At December 31, 2023, current operating income (COI) stood at
€101.2m, or 10.0% of contributed revenue, marking a significant
increase of +10.8% on a reported basis compared with the previous
year (€91.3m, or 10.2% of contributed revenue).
It includes a negative contribution from new scopes of €3.9m,
and a negative currency effect of €2.1m.
At constant scope, current operating income rose
significantly organically (+17.8%) to €105.1m, or 11.2% of
contributed revenue. This improvement mainly reflects the organic
rise in EBITDA (+€20.2m) and the moderate increase in depreciation
in France and abroad.
Breakdown of current operating income by geographic scope
At December 31
2022
2023
In €m
Consolidated
France
International
Consolidated
France
International
Contributed revenue
895.3
629.3
266.0
1013.5
748.5
265.0
COI
91.3
61.7
29.6
101.2
80.8
20.4
% of contributed revenue
10.2%
9.8%
11.1%
10.0%
10.8%
7.7%
Consolidated data at current exchange
rate
For each geographic scope, the main changes were:
- In France, operating income came to €80.8m, or 10.8% of
contributed revenue (vs. €61.7m to 9.8% of sales a year earlier),
marking a sharp rise of +31.0% compared with 2022. This increase
includes a scope effect of (€5.1m) relating to the prorata temporis
contribution of activities consolidated in 2022 and 2023 (All'Chem,
STEI, Séché 34 and Séché ARI).
At constant scope, COI in France came to €85.9m,
or 12.5% of contributed revenue This excellent performance reflects
organic growth in EBITDA (+€28.0m), less depreciation,
amortization, and provisions, which rose moderately due to tight
control over capital expenditure and the quality of the customer
receivables portfolio.
- Internationally, COI came to €20.4m, or 7.7% of
contributed revenue, down (31.1%) over the period (vs. €29.6m, or
11.1% of contributed revenue in 2022).
This contraction includes a scope effect of +€1.3m linked to the
contribution over 3 months of the acquisitions made at the end of
2023, as well as a negative currency effect of (€2.1m).
At constant scope, COI came to €19.2m, or 7.7% of sales,
marking an organic decline of (30.2%) year-on-year.
This lower contribution essentially reflects the organic decline
in International EBITDA (€7.8m) and the increase in depreciation
relating, among other things, to Interwaste's new capacities (class
A cells, industrial effluent treatment plant, etc.)
Operating income
Operating income (OI) reached €91.4m, or 9.0% of contributed
revenue, up 4.9% at current exchange rates on last year (+12.2% on
a constant scope and exchange rates basis).
This change essentially reflects the increase in operating
income, less a provision for intangible assets of €7.1m, mainly due
to the non-utilization of development work carried out in
connection with the implementation of the French ERP system,
following tests carried out by the pilot companies in the second
half of 2023.
Net financial income
At December 31, 2023, net financial income stood at (€22.2m),
compared with (€18.5m) at the end of 2022, up 20.0%
year-on-year.
This change mainly reflects:
- The increase in the cost of gross indebtedness, to (€26.1m) vs.
(€17.8m) a year earlier, due to a rise in the cost of gross debt to
3.49% (vs. 2.56% in 2022) and the increase in average gross debt
over the period.
- The improvement in "Other financial income and expenses", at
+€0.9m vs. (€1.5m) in 2022, mainly due to the recognition of
accretion income on the provision for thirty-year risk, amounting
to +€2.3m (vs. an expense of (€0.5m) a year ago).
Income tax
At December 31, 2023, "Income taxes" amounted to (€17.8m) vs.
(€19.2m) in 2022, i.e. an effective tax rate of 25.8% vs.
28.1%.
Income tax expense breaks down as follows:
- In France, taxes amounted to (€14.8m) - of which (€7.9m)
deferred- vs. (€12.1m) - of which (€5.6m) deferred taxes a year
ago.
- At international scope, (€3.1m)- including +€2.0m in deferred
taxes- vs. (€7.1m) - including €1.2m in deferred taxes - a year
ago.
Share of income of associated companies
Income from associated companies mainly concerns the Group's
share in the profits of Gerep, Sogad, La Barre-Thomas and Solena
Valorisation. It stands at (€1.3m) at December 31, 2023, unchanged
from the previous year.
Consolidated net income
After accounting for the Group's share in the profits of
associated companies, i.e. (€1.3m) at December 31, 2023, total
consolidated net income came to €50.0m vs. €47.9m in
2022.
Net of non-controlling interests of (€2.2m), Group
share of net income came to €47.8m, or 4.7% of contributed
revenue at December 31, 2023 (vs. €44.6m, or 5.0% of contributed
revenue in 2022).
Net income per share came to €6.13 vs. €5.72 at December
31, 2022.
The dividend will be increased from €1.10 to €1.20 per
share and will be withdrawn on July 8, 2024 and paid from July 10,
202422. The payout ratio is comparable to last year, at 19.6% of
2023 earnings per share vs. 19.2 %.
Comments on consolidated cash flow at December 31,
2023
Summary of consolidated statement of cash flows
In €m
2022
2023
Cash flow from operating activities
148.1
187.3
Cash flows from investing activities
(189.5)
(168.7)
Cash flows from financing activities
(5.2)
18.8
Change in cash from continuing
operations
(46.6)
37.3
Change in cash flow from discontinued
operations
-
-
Change in cash and cash
equivalents
(46.6)
37.3
Over the period, the change in cash flow was +€84.0m, generating
a positive cash flow of +€37.3m.
This favorable trend mainly reflects:
- Higher cash flow from operating activities: +€39.2m.
- Reduction in cash flow from investing activities: +€20.8m.
- The contribution of cash flows from financing activities:
+€24.0m.
Cash flows from operating activities
In fiscal 2023, the Group generated €187.3m in cash flow from
operating activities (vs. €148.1m one year earlier), an increase of
+€39.2m.
This change reflects the combined effect of:
- Cash flow from operations before tax and financial expenses up
by +€17.6m to €206.5m (vs. €188.9m in 2022), reflecting growth in
EBITDA.
- A significant reduction in working capital requirements to
(€6.3m) vs. (€25.1m) in 2022. The return of the change in WCR to a
level in line with business growth demonstrates the success of the
Group's work on accounts receivable, despite the consequences of
the cyber-attack in spring 2023 on invoicing and collection.
- Taxes paid down by (€2.9m) to (€12.9m) vs. (€15.8m) in
2022.
Cashflows from investing activities.
(In €m)
2022
2023
Net industrial investments (excluding
IFRIC 12)
105.0
97.2
Net financial investments
0.2
0.0
Net Investments booked
105.2
97.2
Net industrial investments
95.7
88.7
Net financial investments
(0.1)
0.1
Acquisition of subsidiaries - Net cash
flow
80.7
62.3
Net Investments paid
176.3
151.1
In 2023, net recognized capital expenditure falls sharply
to €97.2m, or 9.6% of contributed revenue (vs. €105.0m in 2022, or
11.4% of contributed revenue).
They consist of:
- Recurring capital expenditure (or maintenance) of
€68.2m, or 6.7% of contributed revenue (vs. €57.4m in 2022, i.e.
6.4% of contributed revenue), this increase being mainly due to the
burden of periodic major maintenance and repair expenses in this
financial year.
- Non-recurring (or development) investments of
€29.0m, or 2.9% of contributed revenue (vs. €47.6m in 2022, or 5.3%
of contributed revenue). They mainly concern growth investments in
Services and in Circular economy businesses.
By nature, recognized capital expenditure breaks down as
follows:
- €16.3m of "major maintenance and repair " expenditure (vs.
€9.8m in 2022).
- €35.8m for Hazard Management (vs. €49.7m in 2022).
- €19.2m for Circular economy businesses (vs. €14.1m in
2022).
- €20.0m in Services (vs. €23.3m in 2022).
- €5.9m miscellaneous investments (vs. €8.1m in 2022).
Investments made in anticipation of regulatory changes, as well
as those related to health, safety and the environment, accounted
for €20.9m (21.5% of net investment recognized) vs. €16.0m in 2022
(i.e. 15.2% of net investment recognized).
By division, booked capital expenditure (excluding "IFRIC
12" investments) breakdown is:
At December 31
2022
2023
€m
%
€m
%
Hazardous Waste division
69.7
66.4%
65.3
67.2%
Non-Hazardous Waste division
35.3
33.6%
31.9
32.8%
Total
105.0
100.0%
97.2
100.0%
By geographic region, the breakdown of industrial
investments (excluding IFRIC 12 investments) demonstrates the
preponderance of investments made in France and abroad and by the
main subsidiaries in Italy, South Africa and Spain:
2022
2023
€m
%
€m
%
France
78.7
75.0%
79.3
81.6%
Germany
0.1
0.1%
0.1
0.1%
Spain23
5.5
5.2%
4.5
4.6%
Italy
9.9
9.3%
(0.8)
(0.8)%
Chile
0.9
0.9%
1.6
1.7%
Mexico
ns
ns
0.3
0.3%
Peru
0.9
0.9%
2.4
2.5%
South Africa
9.0
8.6%
9.7
10.0%
Total international
26.3
25.0%
17.9
18.4%
Total (excluding IFRIC 12)
105.0
100.0%
97.2
100.0%
Cash flows from financing activities
Net cash used in financing activities amounted to +€18.8mfor the
year ended December 31, 2023, up +€24.0m year-on-year, mainly
reflecting:
- New borrowing flows: +€163.5m vs. +€104.8m last year,
including the "Recovery" equity loan granted in July 2023 for an
amount of €57.8m and a term of 8 years.
- Loan repayments: (€85.2)m vs. (€60.7)m in 2022.
- Interest expense disbursed: (€19.6)m vs. (€14.6)m in
2022.
- Dividends paid to shareholders and minority interests:
(€9.9)m vs. (€8.8)m in 2022.
- Non-controlling cash flows: (€0.6)m vs. (€3.0)m in
2022.
- Changes in treasury stock amounted to (€0.1)m vs. €0.1m
in 2022.
- Repayment of lease debts of (€29.3)m - including
interest on leases of (€3.6)m vs. (€23.5)m of which interest on
leases for (€2.4)m in 2022.
Comments on changes in consolidated financial position at
December 31, 2023
Extract from the consolidated balance sheet
In €m
2022
2023
Actual
Actual
Non-current assets
963.3
1032.3
Current assets (excluding cash and cash
equivalents)
315.0
391.2
Cash and cash equivalents
126.2
162.2
Assets held for sale
-
-
Share capital (including non-controlling
interests)
317.4
346.3
Non-current liabilities
660.8
731.0
Current liabilities
426.4
508.4
Liabilities held for sale
-
-
Non-current assets
The increase in non-current assets (+€69.0m compared with
December 31, 2022) mainly reflects changes in the following
items:
- "Tangible and intangible fixed assets": up +€65.4m to
€945.7m, due to:
- A €39.2m rise in intangible assets, mainly due to the increase
in "goodwill" following the acquisitions of Furia and Essac.
- The increase in property, plant and equipment (+€37.6m), of
which a +€11.9m change in scope linked to the provisional
recognition of Furia and Essac assets at fair value.
- "Other non-current financial assets": At +€16.8m, this
item includes the increase in concessionary operating receivables
(+€12.2m) linked to work carried out as part of the modernization
of the Mo'UVE energy recovery unit in Montauban.
- "Other non-current assets": down by (€4.6m). This item
mainly comprises the receivable owed by EMS Strasbourg to
Sénerval.
- "Deferred tax assets": down by (€4.9m).
Current assets (excluding cash and cash equivalents)
Current assets excluding cash stood at €301.2m, up €76.2m on
December 31, 2022.
This change mainly reflects changes in the following items:
- "Customers" for +€62.3m (of which +€27.8m related to new
scopes).
- "Claims on the State": +€7.0m, mainly in VAT.
- "Current accounts receivable": +€3.8m in advances to associated
businesses.
Shareholders' equity
The change in shareholders' equity (Group share) in 2023 breaks
down as follows24:
In €m
Group
Attributable to
non-controlling interests
Total equity
Shareholders' equity at
January 1, 2023
310.1
7.3
317.4
Other comprehensive income
(11.0)
0.1
(10.9)
Net income - Group share
47.8
2.2
50.0
Third-party share in share
capital increases of subsidiaries
-
0.4
0.4
Dividends paid
(8.6)
(1.8)
(10.4)
Treasury shares
(0.1)
-
(0.1)
Business combinations
-
ns
-
Transactions with non-controlling
interests
-
-
-
Other changes
0.2
(0.2)
ns
Share capital at December 31,
2023
338.3
8.0
346.3
Current and non-current liabilities
In €m
2022
2023
Non-current
Current
Total
Non-current
Current
Total
Hedging instruments
10.3
-
10.3
5.9
-
5.9
Provisions
53.1
2.7
55.8
59.4
4.5
63.9
Other liabilities
4.8
311.2
316.0
7.1
364.8
371.9
Income tax payable
-
1.1
1.1
-
1.1
1.1
Total (excl. financial debt)
68.2
315.0
383.2
72.4
370.4
442.8
Financial debt
592.6
111.5
704.1
660.6
138.0
798.6
Total
660.8
426.5
1087.3
733.0
508.4
1241.4
Current and non-current liabilities, excluding financial
debts, amounted to €442.8m, an increase of €59.6m mainly
relating to:
- +€2.5m change in "Payables on fixed asset acquisitions",
corresponding to:
- (€4.1m) earn-out payment for the acquisition of the Chilean
company Ciclo.
- €0.7m to the balance of the earn-out payment for Essac, a
Peruvian company.
- €0.8m for the balance of the acquisition of the Industrial
Waters business.
- For (€31.9m), an increase in payables on fixed asset
acquisitions linked to investment projects in France.
- €7.5m increase in "Employee-related liabilities" due to the
assumption of employee-related liabilities of acquired
companies.
- For +€13.4m, the increase in liabilities to the State
(excluding corporate income tax), including €7.0m in respect of VAT
and around €3.6m in respect of the contribution capping electricity
producers' infra-marginal profits introduced by the Finance Act for
2023.
- The remainder was due to changes in other liabilities,
particularly current liabilities such as "Trade payables"
(+€30.1m).
Debt and financing structure
The table below shows changes in net indebtedness in 2023:
In €m
2022
2023
Bank loans
186.5
211.2
Non-bank debt
24.3
21.5
Bonds
415.8
421.1
Lease debt
65.4
70.7
Derivatives
9.6
5.5
Other financial debt (including accrued
interest)
2.3
61.8
Factoring debt
7.0
9.2
Short-term bank borrowings
2.7
3.1
Total Financial Debt (current and
non-current)
713.6
804.1
Cash balance
(126.2)
(162.2)
Net Financial Debt
587.4
641.9
Of which less than one year (1)
(14.8)
(24.2)
Of which due in more than one year
602.2
666.1
(1) Cash and cash equivalents are stated
at less than one year.
Gross financial debt stood at €804.1m at December 31,
2023, compared with €713.6m a year earlier.
This +€90.5m increase mainly reflects:
- Scope effect linked to companies acquired in 2023: +€8.6m
including +€3.8m for locations.
And at constant scope, mainly changes in:
- Debt with credit institutions (including non-recourse bank
loan): +€18.1m, including (€2.8)m in non-recourse bank loan to
finance IFRIC 12 investments in Mo'Uve.
- Bond debt: +€5.4m, mainly due to changes in the fair value of
derivative instruments.
- Fair value of derivative instruments: (€4.1m).
- Lease debt: +€1.5m.
- Miscellaneous financial liabilities (including accrued
interests not due): +€59.5m, mainly due to a €57.8m "Recovery"
equity loan obtained in July 2023.
- Factoring debt: +€2,2m.
At December 31, 2023, the proportion of gross financial debt,
including lease debt and after taking into account fixed-rate
hedging instruments, stood at 74% (vs. 73% in 2022). As a
proportion of net financial debt, the hedging ratio reached
93% (vs. 89% in 2022).
By maturity, the residual contractual maturity of gross
debt - excluding lease debt and hedging instruments - breaks down
as follows:
In €m
Book Value
2024
2025
2026
2027
2028
>2028
Gross financial debt
727.8
128.2
46.8
96.7
49.1
320.3
94.6
At December 31, 2023, cash and cash equivalents totaled
€162.2m, vs. €126.2m one year earlier, marking a significant
increase of +€36.0m.
At the same date, the Group's net financial debt stood at
€641.9m (vs. €587.4m one year earlier), an increase of +€54.5m, of
which:
- (€43.2m) resulting from the Group's debt reduction at constant
scope - and before non-cash effects.
- +€35.5m in non-cash effects (mainly related to new financial
leases).
- +€62.3m from external growth operations.
In €m
31/12/22
31/12/23
Opening Net Debt
474.9
587.4
Cash flows from operating activities
(148.1)
(187.3)
Net industrial investment paid out
95.7
88.7
Net financial investments paid
(0.1)
0.1
Dividends
8.8
9.9
Net interest paid (including interest on
lease debt)
17.0
23.2
Change in other loans and receivables
16.1
22.2
Capital increase or decrease
0.6
-
Change in Net Debt at constant
scope (before non-cash effects)
464.9
544.1
Scope effect
80.7
62.3
Non-cash change in debt
41.8
35.5
Net Financial Debt at closing
587.4
641.9
Financial leverage ratio stood at 2.9 times EBITDA vs.
2.8 times EBITDA a year earlier, reflecting the financing of
external growth at the end of the year. Excluding these
acquisitions, it would have been 2.7 times EBITDA.
Definitions
Contributed revenue: published revenue net of 1. IFRIC 12
revenue representing investments made in assets under concession
recognized as sales in accordance with IFRIC 12 2. the TGAP (Taxe
Générale sur les Activités Polluantes - French General Tax on
Polluting Activities), paid by waste producers and collected on
behalf of the State by waste processors.
Recurring operating cash flow: EBITDA increased by
dividends received from equity interests and the balance of other
cash operating income and expenses (including foreign exchange
gains and losses), less cash expenses for renovation and
maintenance of treatment sites and assets under concession
(including Major Maintenance and Repair expenses).
Free operating cash flow: recurring operating cash flow
less changes in working capital requirements, taxes paid, net bank
interest paid (including interest on financial leases) and
recurring capital expenditure (maintenance), and before development
investments, financial investments, dividends and financing.
____________________________________
1 See press release of March 7, 2022 2 At constant scope and
exchange rates 3 Scope at December 31, 2022 4 Subject to approval
by the Annual General Meeting of Shareholders of April 26, 2024 5
See press release of December 12, 2023 6 See press release
dated March 7, 2022 7 See press release dated December 12,
2023 8 See press release dated September 11, 2023 9
See press release dated September 11, 2023 10 See press
release dated October 24, 2023 11 Séché Environnement's
non-financial performance is presented in full in the Non-financial
Performance Declaration published in the 2023 Universal
Registration Document, available on the company's website.
12 Source: ESMA October 2023 13 See: Press release of
December 11, 2023 14 Free cash flow: EBITDA - Rehabilitation
& MMR expenses - Industrial Capex - Change in WCR - Interest
paid - Tax paid - Dividends 15 Scopes 1 and 2 16 The
management report is published in full in the 2023 Universal
Registration Document available on the Séché Environnement website.
17 See Definitions on page 31. In 2023, they mainly
represented investments in the Mo'UVE incinerator in Montauban.
18 See Definitions on page 31. 19 See: Press release
of September 11, 2023 20 Taxation linked to the cap on
infra-marginal profits of electricity producers instituted by the
Finance Act for 2023. 21 Capping of infra-marginal profits
of electricity producers instituted by the Finance Act for 2023.
22 Subject to approval by the General Meeting of
Shareholders on April 26, 2024 23 Investments made by
Solarca are 100% integrated into the "Spain" scope. 24 Note
3.2.4.13 of this document.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240311939998/en/
SÉCHÉ ENVIRONNEMENT Analyst / Investor Relations
Manuel ANDERSEN Director of Investor Relations
m.andersen@groupe-seche.com +33 (0)1 53 21 53 60
Media Relations Constance Descotes Communications
Department c.descotes@groupe-seche.com +33 (0)1 53 21 53 53
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