DJ Renewi plc: Pre-close trading update
Renewi plc (RWI)
Renewi plc: Pre-close trading update
25-Apr-2024 / 07:00 GMT/BST
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25 April 2024
Renewi plc
Pre-close trading update
Renewi plc ("Renewi" or the "Group") (LSE: RWI.L: Euronext Amsterdam: RWI.AS), a leading European waste-to-product
company, today provides an update on the Group's performance for the year ended 31 March 2024 ("FY24").
Overview
The Group has continued to deliver against the strategic priorities previously communicated at Renewi's Capital Markets
Day ("CMD") in October 2023.The Group is anticipated to report FY24 results in line with current market expectations.
[1] Strong performance in three out of four divisions was coupled with cost actions across the Group, amid a
challenging operating environment for Commercial Waste Netherlands. Recyclate prices were largely stable through the
second half.
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 UK Municipal remains on track for announcement by 30 June 2024.
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. Renewi launched its Simplify programme in Q3, with the full targeted run-rate impact of EUR15m in SG&A costs
reached in Q4, contributing to our medium term objective of delivering high single digit EBIT margins.
Additionally, during FY24, Renewi embarked on its Future Fit digital programme, a strategic initiative expected to
increase operational efficiency, asset utilisation and customer satisfaction, also supporting the Group in achieving
its medium-term margin ambitions.
In order to accelerate growth and increase efficiency, as of 1 May 2024 Renewi will streamline its senior leadership
structure[2] and merge Commercial Waste Netherlands and Belgium under a single leader focused on delivering our
strategic growth agenda. Mineralz & Water will become a part of our Specialities division[3].
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, Renewi intensified its sales
approach to small-to-medium sized enterprises and targeted sectors, showing promising initial results. During the
period, the Group also announced its partnership with Vattenfall, a Swedish energy company. Vattenfall will purchase
more than 7.5m m3 of green gas annually from Renewi organics. Renewi is expected to start supplying green gas in Q1 of
FY25. The new hard plastics advanced sorting line in Acht, Netherlands was officially opened in Q4 and is expected to
operate at 24,000 tonnes per year throughput as of FY25.
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 France will be expanded for the new line, with first volumes
expected in Q4 FY25.
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
Amsterdam[4] and the postponement of the commissioning of an advanced sorting line in Puurs.
Core net debt[5] was EUR367m at 31 March 2024.
A modest dividend is expected to be paid out for FY24.
Notice of FY24 results
On 30 May 2024, Renewi will announce its full-year results and publish its annual report for FY24. https://
brrmedia.news/RWI_FY
For further information:
FTI Consulting
Renewi plc
Richard Mountain / Ben Fletcher
Anne Metz, Director of Investor Relations
+44 203 727 1340
+31 6 4167 9233
FTI_RWI@FTIconsulting.com
investor.relations@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. With a recycling rate of 64% which we believe to be among the highest in Europe, Renewi puts 7m tonnes of low carbon secondary materials back into reuse. This is a significant contribution to climate change mitigation and the circular economy. Our recycling protects virgin resources and avoids emissions of more than 2.5 million tonnes of CO2.
Renewi, which draws on innovation and the latest technology to turn waste into useful materials - paper, metals, plastics, glass, wood, building materials, compost and water - employs over 6,500 people who work on 154 operating sites in 5 countries across Europe and the UK. Renewi is recognised as a market leader in Benelux and a European leader in advanced recycling.
Visit our website for more information: www.renewi.com.
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[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 UK Municipal will be reported separately in subsequent financial reporting.
[4] Renewi Westpoort was acquired from Paro in August 2023 and consisted of multiple sites. The site sold in H2 became redundant because of the location of the Westpoort sites.
[5] Core net debt used for banking leverage calculations excludes the impact of IFRS 16 lease liabilities and UK PPP net debt.
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ISIN: GB00BNR4T868 Category Code: QRT TIDM: RWI LEI Code: 213800CNEIDZBL17KU22 Sequence No.: 317743 EQS News ID: 1888539 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
April 25, 2024 02:01 ET (06:01 GMT)
