Year in Review 2019/20
Underlying progress in core commercial divisions
offset by challenges elsewhere
Highlights
Revenue
€1,697
Up 2%
Underlying EBIT
€72.0m
Down 10%
Underlying profit before tax
€44.5m
Down 23%
Statutory loss for the year
€(77.1)m
Prior year (97.7)m
Chairman statement
FY20 was a year of successful transformation, both financially and operationally. We delivered against our targets and made further steps.
CEO review
We made robust progress during the year, delivering financial results, cost synergies and restructuring projects, in line with our expectations and a number of strategic and financial objectives.
CFO review
FY20 was a successful year in which we made good progress in strengthening the balance sheet, improving underlying margins and returns, and increasing free cash flow.
Our enhanced strategy
We have enhanced our business strategy – strengthening our vision to be the leading waste-to-product company in the world’s most advanced circular economies
Market-facing strategies
1. Leader in recycling
Recycling is central to our waste-to-product mission, and also answers market demand.
2. Leader in secondary material production
Improving the quality and ‘spread’ of the products we produce increases the value of what we recycle.
3. Selectively gain market share
This strategy helps us grow the total volume of waste treated.
Internal Improvement Strategies
Our internal improvement strategy – delivered through a programme called Renewi 2.0 – is expected to make our company leaner and more efficient. Over the next 3 years, we will introduce simplicity, strengthen our customer focus and create a better place to work through:
- The digitisation of our business - providing a fully digital solution for our customers to deliver a better 24/7 customer experience while reducing our cost to serve, and
- Simplification and harmonisation of processes. Simplifying and standardising across divisions to reduce cost and errors and to improve customer, supplier and employee experiences.
Our new sustainability strategy
Renewi’s future-facing plan addresses the climate crisis and makes everything we do sustainable – from helping to drive the circular economy to minimising carbon emissions
Enable the circular economy
We want to be a driving force in the transition towards a circular economy, in which waste is no more and instead is turned into new products and materials.
- Turn our customers’ waste into new products
Reduce carbon emissions and waste
We understand the need not only to reduce our own carbon footprint, but also to decrease the negative impact of carbon emissions and waste on wider society.
- Be a leader in clean and green waste collection
- Reduce the carbon impact of our operations
Care for people
We have a responsibility to deliver our employees home safe and well, to create a rewarding, equal and inclusive working environment, and to have a positive effect on our communities.
- Positively impact our communities
- Deliver people home safe and well, every day
- Make Renewi a rewarding, diverse and inclusive working environment
Stakeholders
From customers to communities, lenders to lawmakers, and of course our employees, we constantly strive to create value for stakeholders by understanding and addressing their priorities and concerns.
Waste-producing customers:
We improve their sustainability by specialist collections and enhanced separation.
Communities:
We use low-emission collection vehicles to limit the impact of operations on communities.
Governments:
We engage with them on the effects of changes in regulatory regime on sustainable operations.
Product customers:
We collaborate with them to innovate and create new products from waste streams.
Employees:
We invest in safety and wellbeing, career development and leadership programmes.
Investors:
We address market trends and have processes to reduce the impact of adverse events.
Capex and opex suppliers:
We enter long-term supply contracts and work to ensure fair treatment in the supply chain.
Regulators:
We engage with them and give expert advice on processing difficult waste streams.
Lenders:
We have regular, ongoing discussions with the relationship banking group.
Bringing Sustainability to life
Interview Maria van der Heijden
The director of MVO Nederland, an organisation that supports businesses and entrepreneurs across Europe to drive the Circular economy, weighed in on the importance of progressing circularity and sustainability in Renewi’s Sustainability Report.
