Suez forced to cut more costs to achieve its objectives – Boursorama

Suez will have to accelerate its cost reduction efforts to achieve its profitability targets (AFP / ERIC PIERMONT)

Suez will have to accelerate its cost reduction efforts to achieve its profitability targets (AFP / ERIC PIERMONT)

This is a “half halftone” said Jean-Louis Chaussade, CEO of the water management and waste specialist, during a conference call.

If the first six months of the year net profit was up 23.7% to 174 million euros, above analysts’ expectations, and revenue of 2.2% to 7.45 billion euros, operating profitability, it, s ‘deteriorated.

the gross operating profit (EBITDA) was down 1.7% to 1.27 billion euros and EBIT decreased by 1% to 598 million euros (-2.3% organic).

“we have to react strongly and immediately to achieve our goals,” insisted Mr. Chaussade.

Already committed since several years in an internal reorganization, including the unification of the brands under the banner “Suez”, and a cost reduction program called “Compass”, Suez will therefore go further.

reductions costs will reach 180 million euros this year, 30 million euros more than expected.

Suez will also “strengthen the control of (its) investments, particularly in France, and also the debt control “and” speed up (its) transformation to make the most integrated, more agile, more powerful to seize all development opportunities, “detailed Mr. Chaussade.

after discussions with employee organizations, which began in June, measures will be announced at the end of the third quarter, he said, without indicating whether this would result in staff cuts, evoking the moment measures mobility and training.

These efforts were welcomed by the markets, the Suez share taking 2.36% to 14.34 euros at 9:55, in a market up 0.38%.

such actions were expected by analysts, to the extent that the complicated economic situation in Europe did not allow the group to rely on the activity to take its growth and profitability.

– ‘unusual Climatology’ –

in the first half, Suez continued to suffer from the low prices of raw materials and energy that affect its branch Recycling and exploiting Europe

Jean-Louis Chaussade, CEO Suez, said he was “serene” in the goals for this year (AFP / ERIC PIERMONT)