Sparks - Renewi

Excluding discontinued UK municipals, Renewi’s revenue rose by 4% to €874.5m, with underlying EBIT from continuing operations up by 9% to €53.2m and an operating margin of 6.1% (March 2024: 5.8%). Statutory profit after tax of €10.2m was due to provisions and the loss for the period from discontinued operations. Free cash flow improved to €20.3m, with core net debt reducing to €357.7m (March 2024: €368.1m). Core net debt to EBITDA was 2.04x, or 2.85x pro forma post-disposal of the UK municipal businesses.

Renewi’s overall performance was positive, given continued softness in key markets, with recyclate prices remaining relatively flat during the period. Commercial Waste sales rose by 3%, despite subdued volumes across certain markets, with price increases implemented to offset additional costs related to incinerator capacity issues. EBIT declined by 8% due to the absence of one-offs seen in the previous year. Mineralz & Water had a flat topline but strong profit performance, with margins of 10% (up from 1.7%), benefiting from improved throughput at ATM  and water, with lower utility costs and the exit of loss-making activities in Tisselt and Zweekhorst. Specialities revenues were up by 19% and EBIT rose 10%, benefiting from higher volume and pricing but with some higher costs (eg price to acquire glass) resulting in a slight margin decline.

Renewi’s outlook and management’s guidance remain unchanged.