Continuation today… Derichebourg – 05/27/2022 at 08:13

(AOF) – In the first half, Derichebourg generated a net profit attributable to the shareholders of the consolidating entity of 117.8 million euros, an increase of 60%. Current EBITDA reached 250.6 million euros, an increase of 45.2%. “An improvement in unit margins in the Recycling activity, partially offset by cost increases (energy and fuel in particular), and the contribution of Ecore explain most of this increase”, specifies the company.

The current pro forma EBITDA of the Derichebourg group in 12 consecutive months is 559 million euros. This value does not take into account the effect of disposals of assets that fall within the commitments assumed before the European Commission.

Consolidated sales totaled 2.5 billion euros, an increase of 54%. This increase is mainly due to the Environmental Services division (+70%).

The volume of scrap sold increased by 19.9%. This increase is explained by the consolidation of Ecore volumes. Excluding this contribution, the volumes handled by the group decreased by around 10%.

This decrease in underlying volumes is mainly explained by the decrease in car production in a context of shortage of semiconductors.

“In the short term, the current economic situation brings uncertainties regarding growth, due to the geopolitical events that have been taking place in Europe for 3 months. A slowdown in economic activity would temporarily impact the group’s results” warns the business and environmental services operator in its perspective.

In the Multiservices business, revenues should continue to grow thanks to the good commercial dynamism. The increase in profitability in the second half compared to last year will depend on the ability to pass on to customers, or on a cost basis, the increase in salaries. Aerospace related activities should continue to improve.

AOF – LEARN MORE

key points

– Global operator of environmental services, created in 1956 under the name of Cie Française des Ferrailles;

– Turnover of 4.6 billion euros divided into 2 businesses: environmental services for 61% (collection and treatment of metals, aluminum and toxic waste) and multi-services (cleaning, industrial cleaning, public lighting, temporary solutions and human relations);

– Great weight of France (72% of revenues), followed by Europe (22%) and America (6%);

– Business model based on a dense network, vertical integration for the environment and, for multi-services, a digitalized offer and integrated services;

– Capital blocked by the Derichebourg family (41.5% of the capital and 57.8% of the voting rights), Daniel Derichebourg, CEO, chairing the 9-member Board of Directors;

– Financial strength with a net debt of 196 million euros against 703 million euros of equity.

Challenges

– Growth strategy: environmental services: consolidate the leadership position in metals and increase the share of non-ferrous metals to 20-25%, implementation of the collection offer to municipalities, expected synergies of 21 M€ with the integration of Ecore -€ 1.3 billion in sales, 78 sites in Europe with 80% recovery rate, of which 98% for battery components;

– Innovation strategy not detailed by the company and integrated with environmental issues;

– Environmental strategy 2018/22 “concretely responsible”: reduction of emissions in 2 levers: recycling of metallic waste and energy through the recovery of shredding waste and agreement to deliver 19 MW of load shedding capacity with Total Flex, carbon offset , renewal of the transport fleet, use of StartMC&Alert Gasoil technologies and use of river transport (23.6% for raw materials) and rail (8%), implementation of recycling plants for automobiles and large appliances, launch of a “green loan”;

– Benefits of partnering with Saur on water-related services for local authorities;

– Balance between the 2 activities: short cycles in the environment, with strong price variations, and long cycles guaranteed by multi-year multi-service contracts;

– Continuation of establishments, reinforced in France and abroad – Germany, ie 11 million euros of additional revenue.

Challenges

– Market driven by interest in raw materials from recycling and outsourcing to Multiservice customers;

– Double impact of higher raw material prices: favorable on scrap prices, negative on volume collection due to the drop in automobile production;

– After strong growth in operating profitability, confidence for the year 2021/2022 ended on September 30;

– Resumption of the dividend service, of €0.32, ie a distribution fee of 30%.

Business services: road transport with labor shortages

A report published by Dares (Direction de l’Animation de la recherche, des Etudes et des Statistiques) in October 2020 pointed out that truck drivers were among the thirty most pressing jobs in France in 2019. According to the OTRE (Organization of European Road Carriers), the needs could reach 100,000 jobs in the next five years. The phenomenon, which was mitigated during successive confinements, reappeared with the resumption of activity. It is partly linked to a lack of image and unattractive remuneration. Unfortunately, recent negotiations between the social partners to revalue the branch minima have not been successful.

Leave a Comment