Renewi plc: Pre-close trading update
Source: EQS
Overview
The Group has continued to deliver against the strategic priorities previously communicated at Renewi’s Capital Markets Day (“CMD”) in
Delivery against strategic objectives
Further optimisation of portfolio
Mineralz & Water continued its recovery, with overall performance being slightly ahead of the original recovery plan. Waterside operations demonstrated strong performance. On the soil side, the ramp-up initiated in Q2 continued to progress in line with expectations throughout the second half of the financial year. In Q4, end-of-waste status was granted for filler, in addition to the existing end-of-waste status for gravel. End-of-waste status for sand is currently under review by the authorities.
The strategic review of
Stronger platform
As set out at the CMD, cost reduction and efficiency in both the short and longer term, remains a key focus for the Group.
Additionally, during FY24,
In order to accelerate growth and increase efficiency, as of
Organic growth
Trading conditions for the Commercial Waste division remain mixed, with volumes stable in H2 versus H1. The Belgian operations benefitted from resilient demand and regulatory tailwinds, including the Vlarema8 enforcement in Flanders. In the Construction and Demolition sector of Commercial Waste Netherlands, volumes picked up slightly versus H1 but results remained impacted by the broader regional weakness. Against this backdrop,
Within Specialities, Maltha demonstrated strong performance over the year. Coolrec also performed well with increased volumes over Q4, but continued to be impacted by low plastics prices. Following a successful contract win leveraging its refrigerator recycling expertise, Coolrec added a new and innovative waste stream to its recycling offering – electric boilers. An existing Coolrec site in the North of
FY24 financial summary
Group revenue for FY24 will be slightly lower year-on-year, as expected, reflecting the mixed market backdrop and lower recyclate pricing. The benefit of ongoing cost reduction, digitisation, execution of strategic initiatives and strong momentum in several of the Group’s businesses is expected to result in an improved underlying EBIT margin performance in H2 versus H1. As a result, the Group is anticipated to report FY24 results in line with current market expectations.1
Cash performance was stronger in H2 as a result of working capital management actions, the sale of the Hemweg site in
Core net debt[5] was
A modest dividend is expected to be paid out for FY24.
Notice of FY24 results
On
About
Renewi’s vision is to be the leading waste-to-product company in the world’s most advanced circular economies. With a recycling rate of 64% which we believe to be among the highest in
Visit our website for more information: www.renewi.com.
[1] Consensus as published on Renewi’s website - https://www.renewi.com/en/investors/investor-relations/analyst-coverage-and-consensus [2] Our ExCom will be transformed to an Executive Leadership Team of six: CEO, CFO, COO Commercial Waste, COO Specialities, Chief Strategy Officer and CHRO. [3] Components of the new Specialities division; Maltha, Coolrec, Mineralz & Water and [4] Renewi Westpoort was acquired from Paro in [5] Core net debt used for banking leverage calculations excludes the impact of IFRS 16 lease liabilities and
Dissemination of a Regulatory Announcement that contains inside information in accordance with the Market Abuse Regulation (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. |
ISIN: | GB00BNR4T868 |
Category Code: | QRT |
TIDM: | RWI |
LEI Code: | 213800CNEIDZBL17KU22 |
Sequence No.: | 317743 |
EQS News ID: | 1888539 |
End of Announcement |
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