Results centre
Preliminary Results FY22
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- Revenue up 10% to €1,869m
- Underlying EBIT1 up 83% to €133.6m, with net impact of customer pricing, recyclate pricing and cost inflation delivering a year-on-year benefit of €45m
- Commercial Division increased underlying EBIT1 margins by 380bps to 10.0%, with the return on operating assets increasing to 31.6%
- Underlying EBIT1 up 77% compared with the pre-Covid FY20 reference period
- Underlying EPS1 up 118% to 98 cents, basic EPS increased from 7 cents to 93 cents
- Statutory profit of €75.4m (FY21: €5.5m#)
- Core net debt* reduced to €303m (FY21: €344m) and net debt to EBITDA reduced to 1.4x from 2.2x
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- Group’s end markets continue to grow, driven by positive legislative changes which promote recycling and increased demand for high quality secondary materials
- Commercial business performed very strongly, managing Covid shutdowns and inflationary pressures with ongoing tight control of costs
- Good progress made on our key strategic initiatives to deliver €60m of additional EBIT in FY26, with €10m delivered in FY22:
- Over €100m of capital investment now committed to increasing the Group’s recycling capacity at attractive rates of return
- Mineralz & Water recovery underway, with further improvements to follow over the next 3 years
- Renewi 2.0 programme on track to conclude next year and deliver full benefits from FY24
- 8.4m tonnes of materials put back into reuse up 5% on the prior year, with a recycling rate of over 67%, up 1.4pps
- Although recyclate prices are expected to moderate in FY23, we expect prices to stabiliseabove pre-Covid levels for the medium term, reflecting the structural growth of the circular economy
- Conditional agreement to acquire “Paro”, an Amsterdam based commercial waste and recycling business, for an enterprise value of €67m, announced separately today.
- The Board now anticipates the Group’s performance in FY23 to be ahead of its previous expectations
1 The definition and rationale for the use of non-IFRS measures are included in note 16.
# The statutory profit for March 2021 has been restated to reflect a prior year adjustment set out in note 1.
* Core net debt used for banking leverage calculations excludes the impact of IFRS 16 lease liabilities and UK PPP net debt.
Financial Highlights
- Revenue up 10% to €1,869m
- Underlying EBIT1 up 83% to €133.6m, with net impact of customer pricing, recyclate pricing and cost inflation delivering a year-on-year benefit of €45m
- Commercial Division increased underlying EBIT1 margins by 380bps to 10.0%, with the return on operating assets increasing to 31.6%
- Underlying EBIT1 up 77% compared with the pre-Covid FY20 reference period
- Underlying EPS1 up 118% to 98 cents, basic EPS increased from 7 cents to 93 cents
- Statutory profit of €75.4m (FY21: €5.5m#)
- Core net debt* reduced to €303m (FY21: €344m) and net debt to EBITDA reduced to 1.4x from 2.2x
Strategic and Operational Highlights
- Group’s end markets continue to grow, driven by positive legislative changes which promote recycling and increased demand for high quality secondary materials
- Commercial business performed very strongly, managing Covid shutdowns and inflationary pressures with ongoing tight control of costs
- Good progress made on our key strategic initiatives to deliver €60m of additional EBIT in FY26, with €10m delivered in FY22:
- Over €100m of capital investment now committed to increasing the Group’s recycling capacity at attractive rates of return
- Mineralz & Water recovery underway, with further improvements to follow over the next 3 years
- Renewi 2.0 programme on track to conclude next year and deliver full benefits from FY24
- 8.4m tonnes of materials put back into reuse up 5% on the prior year, with a recycling rate of over 67%, up 1.4pps
- Although recyclate prices are expected to moderate in FY23, we expect prices to stabiliseabove pre-Covid levels for the medium term, reflecting the structural growth of the circular economy
- Conditional agreement to acquire “Paro”, an Amsterdam based commercial waste and recycling business, for an enterprise value of €67m, announced separately today.
- The Board now anticipates the Group’s performance in FY23 to be ahead of its previous expectations
1 The definition and rationale for the use of non-IFRS measures are included in note 16.
# The statutory profit for March 2021 has been restated to reflect a prior year adjustment set out in note 1.
* Core net debt used for banking leverage calculations excludes the impact of IFRS 16 lease liabilities and UK PPP net debt.