Recyling waste rather than sending it to incineration or landfill is a priority for Renewi. This dust extraction system, situated at our East London site, removes airborne dust particles generated during separation.

Robust performance and good progress on growth initiatives Improved outlook for FY22.

Renewi plc (LSE: RWI), the leading international waste-to-product business, announces its results for the year ended 31 March 2021.

Financial Highlights

• Robust results reflect resilient business model, swift Covid-19 cost and cash action, and a significant improvement in the second half
• Revenue from ongoing businesses flat and revenue from continuing operations down 5% to €1,694m¹
• Underlying EBIT from ongoing businesses 3% below prior year and above previous guidance at €73.0m¹
• Statutory profit of €11.0m compared to a loss of €77.1m in the prior year
• Core net debt* reduced to €344m from €457m last year, representing net debt to EBITDA of 2.2x
• Material upgrade to our expectations for FY22
  
  

Strategic Highlights

• Good progress with innovation pipeline with projects commissioned and in construction, including ATM new products, BioLNG facility, and a further RetourMatras facility
• Renewi 2.0 programme on track and delivered benefits ahead of plan of €2.2m in FY21
• ATM results impacted by delays in approvals to ship TGG, however good progress made, capacity to make new construction materials commissioned, and three year recovery plan remains on track
• Proposed 1 for 10 share capital consolidation to be included at forthcoming Annual General Meeting
  
  

Sustainability

• Our business enables a circular economy: sustainability is our business strategy
• Ambitious “Mission75” launched to increase our recycling rate from 65.8% to an industry-leading 75% over five years, equivalent to an extra 1.3m tonnes per annum
• A leading ESG model; new ESG evaluation of 83 issued by S&P (up from 75 in 2020)

¹The definition and rationale for the use of non-IFRS measures are included in note 17. Ongoing businesses as presented for the prior year exclude the financial results for the Canada Municipal business sold on 30 September 2019 and the Reym business sold on 31 October 2019.
* Core net debt used for banking leverage calculations excludes the impact of IFRS 16 lease liabilities and UK PPP net debt.

Otto de Bont, Chief Executive Officer, said:

“Our performance improved as the year progressed, despite the pandemic, and I am pleased to report final results which are significantly better than we had anticipated in early 2020. This is due to the determined efforts of our people, as they delivered seamless service to our customers and communities in the most challenging environment. These results also reflect our swift actions on cost and cash, our resilient business model and the strengthening recyclate prices in the second half."

“We also made good progress on our key strategic initiatives to deliver sustained growth for Renewi."

“Looking ahead, the Board now expects the Group’s performance in FY22 to be materially ahead of its previous expectations given the Group’s strong results in FY21, particularly in the second half, and the prevailing high recyclate prices."

“The transition to a circular economy will increase demand for recycling and higher quality recyclates, which supports our business model. The sustainability agenda and the potential for a “green recovery” driven by the EU and national governments are expected to present more attractive opportunities for Renewi to convert waste into a wider range of high-quality secondary materials. We remain confident our three strategic growth initiatives – recovery of earnings at ATM, the Renewi 2.0 programme and our innovation pipeline – will deliver significant additional earnings over the next three years and beyond.”

Results

¹The definition and rationale for the use of non-IFRS measures are included in note 17. Ongoing businesses as presented for the prior year exclude the financial results for the Canada Municipal business sold on 30 September 2019 and the Reym business sold on 31 October 2019. The Canada Municipal segment met the definition of a discontinued operation and is recorded as such.
* Core net debt used for banking leverage calculations excludes the impact of IFRS 16 lease liabilities and UK PPP net debt.

The results for both this year and the prior year are reported applying IFRS 16.  Where appropriate, we also disclose certain metrics on an IAS 17 basis as this is relevant particularly for the calculation of leverage for the Group’s banking covenants.

Notes:

1. Renewi will hold an online analyst presentation at 10.30 a.m. BST today. Webcast: https://channel.royalcast.com/landingpage/renewi/20210527_1/
2. A copy of this announcement is available on the Company’s website, (www.renewiplc.com). The presentation made to analysts today will also be available on the website.

Forward-looking statements

Certain statements in this announcement constitute “forward-looking statements”. Forward-looking statements may sometimes, but not always, be identified by words such as “will”, “may”, “should”, “continue”, “believes”, “expects”, “intends” or similar expressions. These forward-looking statements are subject to risks, uncertainties and other factors which, as a result, could cause Renewi plc’s actual future financial condition, performance and results to differ materially from the plans, goals and expectations set out in the forward-looking statements. Such statements are made only as at the date of this announcement and, except to the extent legally required, Renewi plc undertakes no obligation to revise or update such forward-looking statements.

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