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Resilient first half trading and positive outlook

10 November 2020

ATM's waste streams

Renewi plc (LSE: RWI), the leading international waste-to-product business, announces its interim results for the six months ended 30 September 2020 (“H1”).


  • Resilient financial and operational performance through Covid-19
  • Q2 volumes in Netherlands and Belgium Commercial recovered well to 97% and 91% of prior year volumes respectively
  • Revenue and underlying EBITDA from ongoing businesses down 3%1
  • Underlying EBIT from ongoing businesses down 25% to €28.3m1
  • Total exceptional items reduced by 86% to €8.1m
  • Statutory profit of €3.5m up €38.9m from the prior year
  • Cost savings of €10m in H1 and expect to exceed the €15m target for the full year.Cash savings expect to exceed the target of €60m for the full year
  • Free cash flow up 89% to €97.8m, aided by significant government tax deferrals
  • Core net debt* reduced to €381m from €457m at March 2020, representing net debt to EBITDA of 2.69x
  • Liquidity remains strong at €325m (March 2020: €252m)

Drivers for sustained future earnings growth remain strong

  • ATM earnings recovery on track
  • Renewi 2.0 programme progressing well
  • 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

1Numbers quoted on an ongoing business basis (excluding our Reym and Canadian businesses which were disposed of in the prior year) and are stated on a consistent IFRS 16 basis

*Core net debt, which is used for banking leverage calculations, excludes the impact of IFRS 16 lease liabilities and net debt relating to the UK PPP contracts

Commenting on the results, Otto de Bont, Chief Executive Officer, said:

“We delivered a resilient performance in the first half, materially ahead of our Covid-19 adjusted expectations, thanks to the determined efforts of our people. We delivered seamless service to our customers and communities, introducing important innovations in products, services and operational measures to keep our people safe. Strong actions on cost and cash resulted in positive cash flows and a reduction in both net debt and leverage. I would like to thank our 6,800 employees for their ongoing commitment and flexibility to support our customers and continually make more from waste in these challenging times.

“The Board remains cautious about the macroeconomic outlook, in particular any potential future slowdown in the later-cycle Dutch construction market. Whilst further lockdown measures to contain Covid-19 have recently been reintroduced in the Benelux and could persist during the rest of the second half, our resilient trading in the first half, which included a period of extensive lockdown measures in the first quarter, allows us to anticipate a full year performance which is materially ahead of our previous expectations.

“Longer term, whilst the speed and extent of economic recovery will influence our performance, waste volumes have historically been resilient through cycles and the transition to increased recycling will continue to support our business model. The sustainability agenda and the potential for a “green recovery” supported by the EU and national governments are expected to present attractive opportunities for Renewi to convert waste into a wider range of high-quality secondary materials. We remain confident that 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.

Financial Highlights


Sep 2020

Sep 2019

% change





Revenue1 ongoing businesses




Underlying EBITDA1 ongoing businesses




Underlying EBIT1 ongoing businesses




Underlying profit before tax1 ongoing businesses




Underlying EPS1 ongoing businesses (cents per share)




Free cash flow1




Core net debt*









Revenue from continuing operations




Operating profit from continuing operations




Profit/(loss) before tax from continuing operations




Loss from discontinued operations




Basic EPS from continuing operations (cents)




Cash flow from operating activities




1The definition and rationale for the use of non-IFRS measures are included in note 18. Ongoing businesses as presented for the prior year exclude the financial results for the Canada Municipal business which was sold on 30 September 2019 and the Reym business which was sold on 31 October 2019 as set out on page 4. The Canada Municipal segment met the definition of a discontinued operation and is recorded as such.

* Core net debt, which is used for banking leverage calculations, excludes the impact of IFRS 16 lease liabilities and net debt relating to the UK PPP contracts.

The results for both this year and the prior year comparative period 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 with regard to banking covenants.


  1. Management will be holding a virtual analyst presentation at 09:30 GMT today, 10 November
  2. To watch and listen, join the webcast through the following link: https://channel.royalcast.com/renewi/#!/renewi/20201110_1
  3. A copy of this announcement is available on the Company’s website, (www.renewiplc.com). A copy of the presentation being made today and an on-demand webcast will also be available.

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’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 undertakes no obligation to revise or update such forward-looking statements.

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