Strong profitable growth across all segments in H1 2024
Revenues: €1,121m, up +11.1%
Organic growth: +8.4%
EBITDA*: €109m, up +11.6%
Operating result*: €2m
Leverage: 5.9x
Outlook 2024:
- Revenue growth: Double digits
- EBITDA margin improvement
- Committed to deleveraging
Paris, September 18th, 2024 – The Supervisory Board, chaired by Jürgen Rauen, convened in Paris to review the accounts of the Saur Group for the half-year 2024, ending on June 30th, 2024.
Patrick Blethon, Chief Executive Officer of Saur said:
"Saur delivered double-digit revenue growth performance across all business lines. Our Water Services activities have demonstrated solid growth, driven by tariff increases and commercial dynamism. We have started to reap the benefits of our efficiency plan following Water Services France reorganization laying the foundation stone of continued profitability improvement. I am pleased that Industrial Water solutions activities continued to expand with a 21% increase in revenue. Through organic growth and acquisitions, Saur remains committed to innovation and efficiency. Looking ahead, we are confident in our strategic roadmap and on-track to deliver strong profitable growth in 2024.”
KEY FIGURES
Saur reported revenues of €1,121 million in H1 2024, up +11.1%. Organic growth was 8.4%, reflecting tariff increase in Water services and successful commercial development in all Business Units. Acquisitions had a net positive impact on growth, due to the integration of Ekos Poznań in Poland as well as the acquisition of Natural Systems Utilities in the USA.
EBITDA* came in at €109 million in H1 2024, up +11.6%. Profitability in Water services was driven by tariff increases and cost savings, which more than offset inflation. Industrial water solutions benefitted from a strong commercial momentum and a high level of profitability.
Operating result was positive, at €2 million in H1 2024 (compared to €(9) million last year), as a result of EBITDA performance combined with a significant reduction in exceptional costs.
Financial result was €(17) million in H1 2024. The improvement compared to H1 2023 is mainly explained by the impact of unrealized gains linked to the marked-to-market of the Virtual PPA in Iberia.
Net result was €(16) million in H1 2024.
Free cash flow was negative by €(138) million. Funds from operations increased by €4 million compared to last year. Change in working capital is stable compared to the year prior, driven by seasonality in France. Organic capital expenditures increased by €16 million compared to the year prior, mainly on concessive works in France.
BUSINESS UNITS
Water services – France
Water services – France revenue increased by +8.0% to €703 million in H1 2024. Growth dynamic was positive, underpinned by tariff indexation, works development and strong commercial momentum.
EBITDA* came in at €56 million in H1 2024, up by 2.7% compared to the same period last year. EBITDA margin was robust despite cost inflation thanks to favorable tariff increases and productivity gains.
Water services - International
Water services - International delivered revenues of €164 million in H1 2024. Revenues increased by 11%, driven by volumes, tariffs increase, works development and commercial activity. The acquisition of Ekos Poznań in Poland also had a positive impact on the topline (+3.1pts).
EBITDA* came in at €20 million in H1 2024. This represents an increase of +46% compared to H1 2023. EBITDA margin significantly improved by 3.0pts, thanks to tariffs increase and costs reductions.
Industrial water solutions
Industrial water solutions posted a growth of +21%, of which +10% organic, reaching €254 million revenues in H1 2024. This success was driven by strong dynamism across all business lines and by the strategic acquisition of Natural Systems Utilities, which bolstered market presence in the United States.
EBITDA increased by +12% in H1 2024 to reach €33 million, with high margin level at 12.9%, supported by commercial momentum.
BALANCE SHEET
Net debt was €1,459 million, up +€218 million compared to December 31st, 2023.
On June 30th, 2024, the Group had cash and cash equivalents of €236 million (including €44 million NEU commercial paper) and total liquidity of €396 million.
The Group enjoys good liquidity and will continue to manage bond maturities proactively.
Group leverage reached a peak at 5.9x as of June 30th, 2024.
ESG
In 2023, Saur achieved its three key ESG performance indicators :
- 177.2 m3 volume of water abstracted per subscriber (2023 target was < 177.62)
- 74.9 tCO2 e/€m (2023 target was < 76.00)
- 28.8% of women in executive position (2023 target was > 28%)
As announced previously, Saur’s SBTi targets were validated in September 2023. By 2030, Saur is committed to reducing its absolute Scope 1 and 2 GHG emissions by 42% from a 2021 base year, in line with a 1.5°C trajectory consistent with the Paris Agreement. Additionally, Saur aims to cut its Scope 3 indirect emissions by 25% focusing particularly on those generated by its value chain. However, the 2021 baseline is now outdated due to Saur’ growth primarily driven by industry sector. In accordance with SBTi guidelines and in order to reflect the current reality of the group, Saur has decided to recalculate its carbon footprint. A new baseline for 2023 and updated trajectories will be presented, with the goal of obtaining official validation from scientific bodies by the end of 2025 or the beginning of 2026.
In accordance with the adaptation of the actual ESG Roadmap 2021-2025, Saur is undertaking several key initiatives:
- Climate Change Adaptation: Saur has launched a study on climate change adaptation to assess the exposure and vulnerability of representatives sites in within the group. This will enable of the development of a climate change adaptation strategy by the end of 2024-beginning of 2025. This study will be expanded to include all of Saur’s facilities in 2025.
- Climate-Related Transition Risks: Saur is also developing a tool to assess the climate-related transition risks of each of its BUs.
- Biodiversity Strategy: Saur has initiated the development of its biodiversity strategy which will be elaborated and published by the end of 2024
Finally, Saur is preparing for the implementation of the CSRD and CS3D which the group will be subject to starting from the 2025 year-end.
OUTLOOK
FY2024 outlook:
- Revenue growth: Double digits
- EBITDA margin improvement
- Committed to deleveraging