Renewi plc (RWI) Renewi plc: Half Year Trading Update
04-Oct-2021 / 07:00 GMT/BST Dissemination of a Regulatory
Announcement that contains inside information according to
REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The
issuer is solely responsible for the content of this
announcement.
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4 October 2021
Renewi plc
("Renewi", the "Company" or, together with its subsidiaries, the
"Group")
Half Year Trading Update
Performance and outlook materially ahead of the Board's
expectations
Renewi plc (LSE: RWI), the leading international
waste-to-product company, announces its trading update for the six
months ended 30 September 2021 and materially upgrades its
expectations for the year ending 31 March 2022.
Renewi has performed strongly in the first six months of the
year, with increased volumes, improved recyclate prices and ongoing
cost management continuing to support better than expected trading.
Revenues on a like-for-like basis in the first five months have
been more than 10% above the Covid-affected prior year and 7% ahead
of the pre-Covid year ended 31 March 2020.
The Commercial Division has performed particularly well. Core
volumes in Belgium have increased by 15% in the five months to the
end of August, recovering from a severe Covid lockdown in the prior
year. Core volumes in the Netherlands have increased by 2% in the
same period, reflecting the lesser Covid-related reduction in the
prior year. While the hospitality and retail sectors have partly
recovered, we have not experienced predicted negative effects in
the after-Covid period including a significant slowdown in late
cycle sectors such as construction or an increase in insolvencies.
However, bulky waste has reduced as forecast. Recyclate prices have
also remained at high levels throughout the first half in most
major product categories, supporting a strong increase in operating
margin. As these prices are expected to moderate in the future, the
Division will continue to generate attractive returns, benefiting
from dynamic contract pricing and the structural improvements to
the cost base over the last 18 months.
The Mineralz & Water Division has experienced a mixed first
half. At ATM we have increased our soil throughput and over 350,000
tonnes of TGG have now been placed in the market, creating space on
the site and beginning to reduce external storage costs. The
waterside business was slightly softer than expected. While we
continue to participate in increasing tenders for future business
for ATM, we are seeing some weakness in incoming contaminated soil
due to a slow industry-wide recovery post Covid with a delay in
large remediation projects and delays in securing permits for
imported waste. Although we expect a full recovery as earlier
communicated, this will take longer than anticipated.
The Specialities Division has performed well in the first half,
with a particularly strong performance by Coolrec.
Good progress continues to be made with our three strategic
growth initiatives:
-- our innovation pipeline - which will deliver significant
additional revenues and earnings over the nextthree years and
beyond. In particular, we have committed over EUR80m of capital
that will underpin the targeted EUR20mimprovement in EBIT from this
initiative by the end of FY25;
-- recovery of earnings at ATM (albeit slower than planned);
and
-- the Renewi 2.0 programme to digitise and streamline our
business.
Cash performance in the first half continued to be strong, with
tightly controlled working capital and replacement capital
expenditure. Leverage will remain below 2.0x net debt to EBITDA at
the half year.
The strong performance in the first half and positive trading
outlook have led the Board to materially increase its expectations
for the full year ending 31 March 2022. Longer term, the transition
to increased recycling will continue to support our business model.
The sustainability agenda and the potential for a "green recovery"
supported by the EU and national governments will present further
attractive opportunities for Renewi to convert waste into a wider
range of high-quality secondary materials.
The Group announces a virtual Capital Markets Event for analysts
and investors on 12 October 2021 at 1400 CET / 1300 BST. The
Capital Markets Event will focus on how we intend to grow our
business organically by commercialising new and innovative
technologies from our innovation pipeline and how Renewi will
continue to be a market leader and beneficiary in an increasingly
circular economy. We will explore in depth Board committed projects
in Organics, Plastics, Construction Materials and Advanced Sorting.
Please see the Group's website, www.renewi.com, for further
details.
The Group's results for the six months ended 30 September 2021
will be announced on 9 November 2021.
For further information:
Paternoster Communications
Renewi plc
Tom Buchanan
Adam Richford, Head of IR
+44 (0)20 3012 0241
+44 7976 321 540
Ben Honan
Michelle James, Head of Communications
+44 (0)20 3012 0241
+44 7773 813 180
www.renewi.com
About Renewi
Renewi is a pure-play recycling company with a focus on
extracting value from waste and used materials rather than disposal
through incineration or landfill. The company also plays a key role
in limiting resource scarcity through the creation of secondary
materials, and by so doing addresses both social and regulatory
trends and contributes to creating a cleaner, greener world.
Renewi's vision is to be the leading waste-to-product company in
the world's most advanced circular economies. By opting to recycle,
the company avoids emissions of more than 3 million tonnes of CO2
and as a result plays a part in contributing to a sustainable
society, transitioning to a circular economy and driving the
progress needed to halt climate change.
Renewi, which draws on innovation and the latest technology to
turn waste into useful materials - paper, metals, plastics, glass,
wood, building materials, compost and energy - employs over 6 500
people who work on 165 operating sites in 6 countries across Europe
and the UK. Renewi is recognised as a market leader in Benelux and
a regional European leader in recycling.
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ISIN: GB00BNR4T868
Category Code: TST
TIDM: RWI
LEI Code: 213800CNEIDZBL17KU22
OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State
3.1. Additional regulated information required to be disclosed under the laws of a Member State
Sequence No.: 123445
EQS News ID: 1237651
End of Announcement EQS News Service
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