REG-Renewi plc Renewi plc: Q1 Trading in line with expectations

RenewiAnnouncement

14/07/2022 07:15

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   Renewi plc (RWI)
   Renewi plc: Q1 Trading in line with expectations

   14-Jul-2022 / 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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   14 July 2022

                                        

                                   Renewi plc

                                        

   (“Renewi”, the “Company” or, together with its subsidiaries, the “Group”)

                                        

                      Q1 Trading in line with expectations

                                        

   Renewi plc (LSE: RWI), the leading international waste-to-product company,
   announces its trading update for the three months ended 30 June 2022. 

    

   Group revenue and EBIT for the first quarter were ahead of the prior  year
   and in  line  with  our  expectations.   Recyclate  prices  have  remained
   resilient; although ferrous metal prices have reduced from their peak over
   the past few months, prices remain  well above historic averages. We  also
   continue to maintain tight cost control and to actively manage the  impact
   of inflationary cost pressures.

    

   The acquisition  of  Paro  has  received  approval  from  the  competition
   authority and works council in the Netherlands and is expected to complete
   in August. 

    

   Good progress continues  to be  made with our  three value  drivers –  our
   innovation pipeline, the recovery of earnings at Mineralz & Water and  the
   Renewi 2.0 programme – which will deliver significant additional  revenues
   and margin over the next three years and beyond. Installation of the first
   part of the  Vlarema 8 project  in Ghent has  started and is  on track  to
   begin commissioning later this year.

    

   Our  cash  performance  in  the  first  quarter  was  in  line  with   our
   expectations, with core net debt as at 30 June 2022 increasing by €18m  to
   €321m and leverage remaining below 1.5x net debt to EBITDA.

    

   Legislative and regulatory changes continue  to support the transition  to
   increased recycling. For example, in June 2022 the EU Parliament  approved
   the reform of the  EU Emissions Trading Scheme  (ETS) with, among  others,
   the inclusion of waste incineration.  Waste incinerators will have to  buy
   emission  credits  for  each  tonne  of  CO2  they  emit  when  processing
   household,  company  and  industrial   waste.  This  additional  cost   of
   incineration will be a catalyst for the recycling sector, as the inclusion
   of waste incineration in the EU ETS will incentivise the extraction of  as
   much recyclable  material as  possible  before incineration  takes  place,
   similar to the Vlarema 8 legislation in Flanders.

    

   Our expectations  for  the financial  year  ending 31  March  2023  remain
   unchanged.

    

    

   For further information:

    

   Paternoster Communications Renewi plc

   +44 20 3012 0241           +44 7976 321 540

   Tom Buchanan               Adam Richford, Head of Investor Relations
   +44 20 3012 0241           +44 7814 06 0457                           

   Ben Honan                  Claire Tompkins, Communications
                               

    

    

   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  162
   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.

    

   Visit our website for more information:  1 www.renewi.com.

    

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   ISIN:          GB00BNR4T868
   Category Code: QRF
   TIDM:          RWI
   LEI Code:      213800CNEIDZBL17KU22
   Sequence No.:  174545
   EQS News ID:   1397379


    
   End of Announcement EQS News Service

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