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Interim Results 2021/22

    • Revenue up 11% to €916m, driven by Covid recovery and ongoing stronger recyclate prices
    • Underlying EBITDA1 up by 43% to €126.6m; underlying EBIT1 up by 125% to €63.8m driven by Commercial Waste; Commercial Waste EBIT margin increased by 470bp to 9.6%
    • Statutory profit of €37.1m (2020: €3.5m)
    • Core net debt* reduced to €336m (March 2021: €344m), representing net debt to EBITDA of 1.82x, within our 2x leverage target two years ahead of expectations
    • Management expectations for the full year ending 31 March 2022 further increased

    1The definition and rationale for the use of non-IFRS measures are included in note 17.
    * Core net debt used for banking leverage calculations excludes the impact of IFRS 16 lease liabilities and UK PPP net debt.

    • Regulation continues to support our business model, including increased incineration taxes in Belgian regions and the Vlarema 8 legislation in Flanders
    • Increased demand for recyclates, combined with shorter-term supply constraints, has led to current higher recyclate prices; longer term outlook is for sustained value from secondary materials
    • As detailed in the Group’s recent Capital Markets Event, our investments in circular innovations are expected to deliver an additional €20m of EBIT by the end of 2025. Further projects remain under development
    • The Renewi 2.0 programme remains on track to deliver €20m of savings by FY24 and is currently delivering run rate benefits of €4.0m
    • ATM has shipped over 400k tonnes, representing 31% of legacy TGG stocks, and outlets for secondary construction materials are developing. As previously indicated, low intake of inbound contaminated soil will delay the full ATM profit recovery
    • Our business enables a circular economy: sustainability is core to our business strategy and Renewi contributes to the net avoidance of over 3 million tonnes of CO2 per annum
    • Newly committed innovation projects expected to underpin our target to increase the Group’s recycling rate by 10 percentage points to 75% and avoidance of a further 0.5 million tonnes of CO2 per annum
    • Innovation pipeline progressing, especially with bio-LNG, construction materials and RetourMatras
    • Continuing supportive regulation and increasing market demand for circular solutions
    • Full year outlook: the Board now anticipates a performance materially ahead of previous expectations

Financial Highlights

  • Revenue up 11% to €916m, driven by Covid recovery and ongoing stronger recyclate prices
  • Underlying EBITDA1 up by 43% to €126.6m; underlying EBIT1 up by 125% to €63.8m driven by Commercial Waste; Commercial Waste EBIT margin increased by 470bp to 9.6%
  • Statutory profit of €37.1m (2020: €3.5m)
  • Core net debt* reduced to €336m (March 2021: €344m), representing net debt to EBITDA of 1.82x, within our 2x leverage target two years ahead of expectations
  • Management expectations for the full year ending 31 March 2022 further increased 

Market and Strategic Highlights

  • Regulation continues to support our business model, including increased incineration taxes in Belgian regions and the Vlarema 8 legislation in Flanders
  • Increased demand for recyclates, combined with shorter-term supply constraints, has led to current higher recyclate prices; longer term outlook is for sustained value from secondary materials
  • As detailed in the Group’s recent Capital Markets Event, our investments in circular innovations are expected to deliver an additional €20m of EBIT by the end of 2025.Further projects remain under development
  • The Renewi 2.0 programme remains on track to deliver €20m of savings by FY24 and is currently delivering run rate benefits of €4.0m
  • ATM has shipped over 400k tonnes, representing 31% of legacy TGG stocks, and outlets for secondary construction materials are developing.As previously indicated, low intake of inbound contaminated soil will delay the full ATM profit recovery

Sustainability

  • Our business enables a circular economy: sustainability is core to our business strategy and Renewi contributes to the net avoidance of over 3 million tonnes of CO2 per annum
  • Newly committed innovation projects expected to underpin our target to increase the Group’s recycling rate by 10 percentage points to 75% and avoidance of a further 0.5 million tonnes of CO2 per annum

1The definition and rationale for the use of non-IFRS measures are included in note 17.
* Core net debt used for banking leverage calculations excludes the impact of IFRS 16 lease liabilities and UK PPP net debt.