LONDON (dpa-AFX) - Waste-to-product company Renewi Plc (RWI.L) reported Tuesday core volumes for the first quarter were 6% down on prior year.
In its trading update, the company noted that first-quarter trading was ahead of the Board's initial Covid-19 adjusted expectations. The company now said the total impact on earnings were 12 million euros, compared to previously expected 20 million euros, supporting a strong cash performance with no net outflow during the lockdown.
In the quarter, Commercial Waste Netherlands volumes improved steadily. Commercial Waste Belgium volumes also improved through the quarter from 35% drop in April to 21% down in May and 15% down in June.
The new Mineralz & Water Division performed slightly better than expected. Specialities has performed in line with expectations.
Looking ahead, the company noted that further volume recovery during the second quarter and the remainder of the financial year remains dependent upon the successful easing of lockdown restrictions, as well as the speed and extent of economic recovery.
The company said, 'We remain alert to the potential for a decline in late cycle activities such as construction. We are also developing plans to accelerate further cost reduction measures if volumes fail to recover to anticipated levels. Longer term, waste volumes are typically resilient through economic cycles and the transition to increased recycling remains a strong long-term structural growth driver for the Group. The recovery of earnings at ATM and our Renewi 2.0 programme are expected to further support sustained future earnings growth.'
Copyright RTT News/dpa-AFX
© 2020 AFX News
