REG-Renewi plc Renewi plc: Unchanged expectations for full year

RenewiAnnouncement

03/10/2022 07:15

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   Renewi plc (RWI)
   Renewi plc: Unchanged expectations for full year

   03-Oct-2022 / 07:00 GMT/BST
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   3 October 2022

                                        

                                   Renewi plc

                                        

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

                                        

                                 Trading Update

                                        

                      Unchanged expectations for full year

                                        

   Renewi plc (LSE: RWI), the leading international waste-to-product company,
   announces its trading update for the  six months ended 30 September  2022,
   ahead of the publication of its interim results on 10 November 2022. 

    

   Renewi has traded well in the first  half, with EBIT expected to be  ahead
   of the prior year on flat revenues.  Recyclate prices have remained  above
   historic averages; although paper, plastic  and metal prices have  reduced
   during the second quarter as anticipated.

    

   We have experienced lower volumes in some segments of our customer base in
   our Commercial  divisions, like  construction and  green waste,  which  we
   anticipate to continue during the  second half.  Volumes across our  other
   divisions have remained stable.

    

   With inflation increasing to  low double digits in  the main countries  we
   operate in, for a significant part driven by energy prices, we continue to
   focus on cost control and passing on price increases to customers.

    

   The acquisition of Paro, an Amsterdam based commercial waste and recycling
   business announced in May 2022, completed on 1 August 2022 as expected and
   integration activities are underway.

    

   We expect core net  debt at 30  September 2022 to  be around €390m  (€303m
   March  2022),  reflecting  the  €67m  acquisition  of  Paro  and   ongoing
   innovation pipeline  investments during  the  period. Our  leverage  ratio
   (including the pro forma impact of Paro) is expected to be under 1.8x  net
   debt to EBITDA (1.4x March 2022) at the period end.

    

   Whilst the Group  expects to deliver  a strong performance  for the  first
   half, we  are  mindful  of the  continuing  inflationary  cost  pressures,
   including energy,  across the  business  and a  challenging  macroeconomic
   environment in the second half. Accordingly, our expectations for the full
   year remain unchanged. We  remain confident of  the medium- and  long-term
   prospects as  we see  continued development  of the  circular economy  and
   evolution of the market for low carbon secondary materials.

    

   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           +31 6 28 95 77 44
   Ben Honan                  Marieke van Wichen, Communications Director

    

    

   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: TST
   TIDM:          RWI
   LEI Code:      213800CNEIDZBL17KU22
   Sequence No.:  191773
   EQS News ID:   1454617


    
   End of Announcement EQS News Service

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