Renewi - Edison Group

Overview
Price performance
Financials
Research
Thematics

Renewi is a leading waste-to-product company in some of the world’s most advanced circular economies, with operations primarily in the Netherlands, Belgium and the UK. Its activities span the collection, processing and resale of industrial, hazardous and municipal waste.

Post its initial approach, Macquarie decided not to make an offer for the group, while the Renewi board’s view was that the 810p proposed offer significantly undervalued the group. At the capital markets day in October, management set targets for ‘at least’ 5% organic sales growth, high single-digit operating margins, free cash flow generation of at least 40% of EBITDA and a return on capital of over 15%, offering an attractive set of financials if fully achieved.

Latest Insights

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Industrials |
Update

31.01.24

Renewi — Softer construction market affecting profitability

Industrials |
Update

13.11.23

Renewi — Recycling 2.0

Industrials |
Update

05.09.23

Renewi — A circular economy champion

Industrials |
Flash note

13.07.23

Renewi — On track – a circular track

Renewi_resized

Sector

Industrials

Equity Analyst

David Larkam

Analyst, Industrials

Key Management

Annemieke den Otter

CFO
Ben Verwaayen

Chairman
Otto de Bont

CEO

Balance Sheet

Forecast net debt (€m)

412.9

Forecast gearing ratio (%)

113

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	3.8	(8.5)	(4.8)
Relative	2.1	(13.0)	(4.7)
52 week high/low	734.0p/450.0p

Financials

Renewi’s Q3 update highlighted further weakness in the Netherlands’ construction sector, a key segment for Commercial Waste Netherlands, with October 2023 showing a 27% annual decrease in the new projects started index. Management announced a programme to generate €15m of cost savings at the interim results, expected to benefit H224 by €5m; nevertheless this has led us to reduce full year expectations. The Belgian arm of Commercial Waste remains more resilient and the rest of the group is performing in line.

Y/E Mar	Revenue (€m)	EBITDA (€m)	PBT (€m)	EPS (fd) (c)	P/E (x)	P/CF (x)
2022A	1869.2	261.5	105.3	98.0	6.8	N/A
2023A	1892.3	257.0	103.7	89.0	7.4	N/A
2024E	1843.3	232.2	69.9	60.0	11.0	N/A
2025E	1891.5	248.2	83.1	71.0	9.3	N/A

Flash note

Industrials

25.05.22

Renewi — Strong FY22, raising guidance for FY23

Update

Industrials

25.03.22

Renewi — FY22 ends with raised guidance

Update

Industrials

17.02.22

Renewi — Recyclate prices drive further FY22 upgrade

Outlook

Industrials

20.12.21

Renewi — Focusing on H122 growth and innovation strategy

edison tv

Industrials

08.11.21

Renewi: CFO Toby Woolrych on FY22 interims – record performance driven by recyclates

Update

Industrials

08.10.21

Renewi — Further earnings momentum

edison tv

Industrials

06.10.21

ESG interview with Renewi CEO Otto de Bont

Update

Industrials

25.06.21

Renewi — On the front foot and targeting strategic progress

edison tv

Industrials

27.05.21

Renewi – executive interview

Update

Industrials

17.03.21

Renewi — Upgrades driven by Commercial waste division

Update

Industrials

01.02.21

Renewi — On track for FY expectations

Update

Industrials

18.11.20

Renewi — Expectations raised

edison tv

Industrials

16.11.20

Renewi – executive interview

edison tv

Industrials

02.11.20

Renewi – EKF interview

QuickView

Industrials

20.10.20

Renewi — Making more from waste

Update

Industrials

01.10.20

Renewi — FY21 estimates raised following H1 update

edison tv

Industrials

11.08.20

Renewi – executive interview

Update

Industrials

23.07.20

Renewi — Plotting a path for recovery and growth

Update

Industrials

04.06.20

Renewi — Near-term flexibility, long-term growth strategy

Update

Industrials

26.03.20

Renewi — In-line FY20, coronavirus evaluation underway

Update

Industrials

27.01.20

Renewi — Preparing the ground for earnings recovery

Update

Industrials

20.12.19

Renewi — Thermally treated soil ban lifted

Update

Industrials

15.11.19

Renewi — Accentuating positives

Update

Industrials

02.10.19

Renewi — All divisions on track

Update

Industrials

12.09.19

Renewi — Non-core disposal further reduces gearing

Update

Industrials

11.07.19

Renewi — Start to FY20 as expected

Update

Industrials

19.06.19

Renewi — Exit from Canada announced

Update

Industrials

03.06.19

Renewi — Commercial progress offsets other areas in FY19

Update

Industrials

01.05.19

Renewi — ATM prudence and debt management actions

Update

Industrials

17.12.18

Renewi — Near-term trading distracting from long-term trend

edison tv

Industrials

18.10.18

Executive interview – Renewi

Update

Industrials

02.10.18

Renewi — Guidance unchanged at the end of H1

Update

Industrials

24.07.18

Renewi — So far, so good

Update

Industrials

30.05.18

Renewi — Virtuous circular economy

edison tv

Industrials

29.05.18

Executive Interview – Renewi

Update

Industrials

09.03.18

Renewi — Decisive steps in UK Municipal

Update

Industrials

15.02.18

Renewi — In-line trading update

Update

Industrials

03.01.18

Renewi — Three positive steps

Update

Industrials

15.11.17

Renewi — Strong H1 performance

Initiation

Industrials

13.07.17

Renewi — Growth catalysts in place

edison tv

Industrials

29.10.13

Executive Interview – Shanks