Renewi plc Q1 trading update
13 July 2023
Renewi plc (LSE: RWI), the leading international waste-to-product company, announces its trading update for the three months ended 30 June 2023.
As expected Group Revenue and EBIT in the first three months of the year were lower than prior year as recyclate prices were at peak level during Q1 last year. Recyclate prices have largely stabilised since September 2022, at levels slightly above historical averages. The impact of recyclate prices has been mitigated by dynamic pricing combined with cost measures and the benefits of the Renewi 2.0 programme.
Commercial division volumes have stabilised in Belgium, and the Netherlands continues to see some pressure on volume driven by easing construction activity, with the peak activity during COVID now returning to normalised levels. Specialities performed above expectations and M&W is progressing on the transition to the production of construction materials.
As expected, core net debt increased by €18m in the quarter to €388m, as we continue to deploy capital on the circular innovation pipeline at the Acht rigid plastic processing plant in the Netherlands and the Puurs site in Belgium. Recently commissioned growth projects focused on organics to bio fuels, high quality plastics from waste electrical goods and addressing the Vlarema 8 advanced sorting legislation are performing well in Amsterdam, Waalwijk and Ghent respectively.
At this stage of the year, the Group expects to deliver full year results in line with market expectations and remains confident in the Group’s growth opportunities in the medium term as legislation encourages the transition to circular economies.
The Group will hold a capital markets event on 4 October 2023 to outline further detail on the Group’s strategy to grow top line and profitability of its core businesses, its capital allocation priorities and opportunities to deliver sustainable growth in shareholder value.