REG-Renewi plc Renewi plc: TST-Trading Statement - On track to meet expectations for the full year

RenewiAnnouncement

31/01/2023 07:15

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   Renewi plc (RWI)
   Renewi plc: TST-Trading Statement - On track to meet expectations for the
   full year

   31-Jan-2023 / 07:00 GMT/BST
   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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   31 January 2023

                                   Renewi plc

                                        

                On track to meet expectations for the full year

                                        

   Renewi, the  leading  European waste-to-product  business,  announces  its
   trading update for the third quarter ended 31 December 2022.

    

   Otto de Bont, Chief Executive Officer, said:

    

   “We are on  track to  meet expectations 1  1  for  the full  year. We  are
   continuing to execute  our strategic agenda  and to build  on our  leading
   position as a  manufacturer of low  carbon secondary materials.  In Q3  we
   have completed the construction of our advanced sorting facility in  Ghent
   and delivered important milestones in  the construction of our  facilities
   in Puurs and Acht.

    

   “Over the near term we will  be navigating inflation, price increases  and
   volume pressure, but we remain cautiously optimistic and our  expectations
   for the Group’s full year performance remain unchanged.”

    

   Trading and cash performance

    

   Trading in  the Commercial  Waste Division  in  Q3 was  in line  with  our
   expectations.  Volumes remained soft compared to last year but  stabilised
   versus earlier quarters.  Cost increases  are largely  being mitigated  by
   strong price  management combined  with  cost controls.  Recyclate  prices
   stabilised during Q3,  with wood  trading at  record highs  and paper  and
   plastic at significantly lower levels than in previous quarters, but above
   historic averages.

    

   The Mineralz &  Water Division  performance in  Q3 was  supported by  good
   performance  on   the  waterside   whilst  making   gradual  progress   on
   certification and future outlets for gravel, sand and filler.

    

   Within the  Specialities  Division,  Coolrec and  Maltha  continued  their
   improved performance, and  the UK Municipal  business was stable.  Coolrec
   has been  awarded significantly  higher volumes  by the  Dutch  collection
   scheme in Q3, underpinning volume and revenue growth for the coming years.

    

   Good ongoing progress on the  investments pipeline continued in the  third
   quarter, with the Ghent facility entering into commissioning and  activity
   ramping up at both Puurs and Acht sites, which are well on track.

    

   Core net debt  at 31  December 2022  decreased to  €372m (September  2022:
   €388m), driven by disciplined working capital management.

    

   Outlook

    

   Although we continue to expect a challenging macroeconomic outlook  during
   2023, we remain  committed to  executing our growth  agenda, investing  in
   advanced sorting and treatment capacity to produce more and higher quality
   low carbon secondary  materials, and  to building further  on our  leading
   position in our home markets.

    

   In the  medium-term  we remain  on  track to  deliver  the €60m  from  the
   identified value drivers  and will  continue to benefit  from the  Group’s
   proven resilience.

    

   In the  longer-term  we remain  confident  that, with  regulation  driving
   increasing demand for  recycled materials, Renewi  is well positioned  for
   growth in its markets  and to serve customers  profitably as the  circular
   economy develops  and  the  market  for  low  carbon  secondary  materials
   evolves.

    

   For further information:    
   Paternoster Communications Renewi plc

   +44 20 3012 0241           +44 7976 321 540
   Tom Buchanan               Adam Richford, Head of Investor Relations

    
    

   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  an  industry  leading
   recycling rate  of 68%,  Renewi puts  8m 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 3 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  162
   operating sites  in  6 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:  2 www.renewi.com.

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    3  1  Consensus expectations are for underlying Group FY23 Revenue of
   €1.9bn, EBITDA of €255m and EBIT of €128m. See Analysts & Coverage section
   of the Renewi investor relations website for more details

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   ISIN:          GB00BNR4T868
   Category Code: TST
   TIDM:          RWI
   LEI Code:      213800CNEIDZBL17KU22
   Sequence No.:  219436
   EQS News ID:   1547029


    
   End of Announcement EQS News Service

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