Veolia's CEO Estelle Brachlianoff prefers to deliver, rather than over-promise.
A trio of investor events next year could further enhance the group’s valuation.
Veolia has decided that it needs to educate investors on the growth potential of its new business mix.
In particular, it wants to reveal the intrinsic value of its US water and its water technologies businesses by comparing them with peers which trade at higher growth multiples. To this end, management this month announced a number of ‘deep dive’ events for 2024 in order to increase investor appreciation of key divisions within the business.
In January, it will showcase its energy activities, while in April, the group’s US activities will be in focus. That will be followed up next summer by a presentation of Veolia’s Water Technology and Innovation businesses.
Veolia management remains wary of over exuberance by the analyst community as far as near-term growth potential is concerned. Notwithstanding lower net debt guidance going forward, analysts challenged CEO Estelle Brachlianoff on the third-quarter earnings call about the unchanged full-year guidance, particularly given the 7.7% EBITDA growth in Q3.
Her response encapsulates the pragmatism and solid grounding of the new Veolia: “I am more of a delivery than a promise sort of person.”
Veolia Veolia Water Technologies Veolia North America Global Water Intelligence (GWI)
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