REG-Renewi plc Renewi plc: Pre-close trading update
25/04/2024 07:15
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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 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 €15m 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 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 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 4 and the postponement of the commissioning
of an advanced sorting line in Puurs.
Core net debt 5 5 was €367m 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. 6 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
8 FTI_RWI@FTIconsulting.com
7 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: 9 www.renewi.com.
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10 1 Consensus as published on Renewi’s website -
11 https://www.renewi.com/en/investors/investor-relations/analyst-coverage-and-consensus
12 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.
13 3 Components of the new Specialities division; Maltha, Coolrec, Mineralz & Water
and UK Municipal will be reported separately in subsequent financial reporting.
14 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.
15 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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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.
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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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