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FY24 Full Year Results, Delivering on Commitments

30 May 2024

Renewi plc ("Renewi" or the "Group") (LSE: RWI.L: Euronext Amsterdam: RWI.AS), a leading European waste-to-product company, today releases its results for the full-year ended 31 March 2024 (“FY24”).

Sale of UK Municipal
Following the strategic review of its UK Municipal operations (“UK Municipal”) announced in September 2023, Renewi has entered into a binding agreement to sell UK Municipal to Biffa Limited (“Biffa”), a leading UK-wide integrated waste management business (the “Divestment”).

Renewi’s CEO, Otto de Bont: ""The sale of UK Municipal to Biffa delivers on our commitment to optimise our portfolio and strengthen our core business. This is a transformational moment for Renewi which will enable us to unlock substantial profit and cashflow improvements and improve shareholder value.

We will now fully focus on growing in Europe’s most attractive and advanced recycling markets. Biffa’s financial position, operational expertise, and presence in the UK municipal landscape make them the right new home for our UK Municipal business and we are confident this transaction benefits all stakeholders."

See a separate RNS dated 30 May 2024 “Renewi announces sale of UK Municipal business to Biffa” for more information.

Transaction Highlights

Supporting Renewi’s transformation, the Divestment:

  • will immediately increase Renewi’s free cash flow by €15-20m per annum and drive at least c.50bps of EBIT margin expansion.
  • significantly de-risks the Group’s balance sheet as unpredictable UK Municipal liabilities, Onerous Contract Provisions (OCPs), will be replaced by conventional and competitively priced debt financing, enabling increased visibility on future capital outflows.
  • focuses resources and management time on strategic initiatives for stronger growth and shareholder returns.

The transaction will be effectuated through a combination of a nominal cash consideration payable to Biffa and pre-completion capitalisation of UK Municipal (together, the “Capitalisation”). The Capitalisation ensures UK Municipals’ ability to fulfil its future contractual obligations.

  • Capitalisation is expected to be approximately £125m* (€146m**) on completion which, when offset against the reduction of liabilities of €89m, equates to a net cost of c. €57m to Renewi and a total cash impact of €154m, including transaction costs.
  • Core net debt / EBITDA immediately following the transaction is expected to be approximately 2.9x, falling to our target of 2.0x in the medium-term, with improved margins and cash generation driving accelerated deleveraging.
  • The transaction will be funded through the existing revolving credit facility, supplemented by a €120m bridge facility.

The Divestment provides UK Municipal customers, employees and other stakeholders with strong strategic backing from a respected scale operator in the UK market. The transaction is expected to complete before 31 December 2024, subject to receipt of a limited suite of regulatory and other consents.

* Subject to customary closing adjustments; Capitalisation at completion will be net of any normal course capitalisation provided by Renewi to UK Municipal in the period between 31 March 2024 and completion of the Disposal.
** Based on GBP/EUR exchange rate of €1:£0.855. For the purposes of UK Listing Rule 10.4, as at 31 March 2024 the gross assets of UK Municipal (adjusted for the estimated pre-completion Capitalisation) are €348m; and in the financial year ending 31 March 2024, UK Municipal contributed €0.7m to the Group’s statutory profit before tax.

FY24 Financial Highlights (note all financial results are shown with UK Municipal held for sale)

  • Revenue of €1,689m and underlying EBIT of €105.5m from continuing operations (FY23: revenue of €1,704m and underlying EBIT of €131.7m).
  • Underlying EBITDA from continuing operations of €230.2m: (FY23: €252.4m)
  • Statutory loss of €30.9m: (FY23: profit of €66.6m) reflecting lower profits and an exceptional charge of €64.5m on the UK Municipal divestment
  • Free cash flow of €20.9m (FY23: €25.3m)
  • Core net debt €368.1m: (FY23: €370.6m), representing 2.1x EBITDA
  • Dividend: A final dividend of 5p per share has been recommended for FY24

FY24 Strategic and Operational Highlights

  • Commercial Waste: Solid volume development in Belgium, supported by legislation. Volumes in the Netherlands stabilised in the final quarter of the year, supported by the implementation of a new sales strategy, despite a continued challenging Dutch construction market.
  • Mineralz & Water: Delivered a strong recovery, with increased uptake of new sand, filler and gravel products alongside a strong performance in water-related activities.
  • Specialities: Continued strong momentum at both Maltha and Coolrec, benefitting from their leading positions in high growth niches. Revenue and underlying EBIT growth supported by pricing at Maltha and volumes at Coolrec.
  • Recyclate prices: Prices were stable throughout the year, having returned to pre-Covid historical average levels, albeit plastic prices remain at lower than average levels due to international oversupply of virgin material.
  • Simplify (SG&A efficiency programme): Launched to streamline staff functions and reduce costs, Simplify achieved its €15m run rate at the end of March.
  • Future Fit (Digitisation Project): Accelerated in the second half of FY24, Future Fit aims to enhance operational efficiency, asset utilisation and customer satisfaction. The project will be implemented over the next two to three years and is fully accounted for in the existing medium term high-single digit EBIT target.
  • Commercial momentum: new customer wins include Schiphol and Rotterdam airports, Dutch Ministry of Defense, Custodial Institution Agency, Total Energies, BPost, Nike, and Mouscon Hospital.
  • Recycling rate: was 63.2%, down slightly from 63.7% in FY23 due to lower construction volumes which have a high recycling rate. This was partly compensated by the increase of advanced recycling of plastics and mixed residual waste.
  • Lost Time Injuries Rate: decreased from 9.4 to 6.8, driven by cross-company initiatives including safety trainings and investments in site safety, resulting a safer workplace


  • FY25 trading expectations include return to revenue growth and significant margin improvement for the continuing Group, in line with current consensus.
  • Commercial Waste expects to continue its strong performance in Belgium and to improve in the Netherlands, building on stabilised volumes, despite the ongoing weakness in the construction sector. Further margin improvement is expected as existing programmes ramp up to their run-rate benefits.
  • Continuing Mineralz & Water turn-around, underpinned by the higher run rate achieved in late FY24 continuing into FY25. Additionally further improvements are expected in the quality and consistency of the materials.
  • Investment in innovative projects within Coolrec and Maltha in progress, with returns expected during the second half of FY25
  • The UK Municipal Divestment will increase near term leverage; deleveraging expected at 0.4 – 0.5 turns per annum
  • Reiteration of 3-5 year targets:
    • 8-10% underlying EBIT margin
    • Free cash flow/EBITDA conversion >40% o ROCE >15%
    • Organic annual revenue growth >5%  





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1 The definition and rationale for the use of non-IFRS measures are included in note 18.
# Certain September 2022 values have been adjusted to reflect a prior year adjustment as referred to in note 2.
* Core net debt used for banking leverage calculations excludes the impact of IFRS 16 lease liabilities and UK PPP net debt.

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