Renewi PLC on Thursday said revenue and profit both took substantial knocks in its latest half year, but maintained its full-year guidance and predicted ‘good progress’ in financial 2025.
The Milton Keynes, England-based company, which says it turns waste into high-quality recycled products, said pretax profit for the six months ended September 30 fell 36% to €45.4 million from €71.6 million the previous year. Earnings per share likewise fell 36%, to 42 cents from 66 cents.
Underlying earnings before interest, tax, depreciation and amortisation dropped 14% to €113.6 million from €131.9 million. Underlying Ebit fell 33% to €50.7 million from €75.2 million, while the underlying Ebit margin decreased to 5.4% from 7.9%.
Revenue decreased 1.6% to €937.1 million from €952.0 million, which Renewi attributed to lower Commercial Waste volumes and lower recyclate prices after both peaked during the Covid-19 pandemic. Ongoing demand remained weak in the Commercial Waste division, with inbound volumes stabilising in Belgium but continuing to fall in the Netherlands.
However, Chief Executive Officer Otto de Bont commented ‘Our first half performance was in line with our expectations and previous guidance from October...Alongside reducing costs, we continue to benefit from previous strategic actions.
‘For example, Mineralz & Water have ramped up production of sand and gravel in our soil cleaning business as of September and we expect to show sharply improved results in H2.’
Renewi did not recommend an interim dividend, unchanged from last year and having suspended dividends in 2020. However it announced that it intends to reinstate payments, starting with a final dividend at the end of the current year ending March 31.
Going forward, de Bont said Renewi expects ‘higher profit and margin expansion in the second half of the year and we expect this to flow through to FY25.
‘Renewi’s resilience and adept handling of price and cost dynamics have ensured a stable financial position and we reconfirm our intention to resume dividend payments at the end of this financial year.’
Renewi shares were down 0.5% at 576.00 pence each in London on Thursday.
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