Renewi PLC on Tuesday maintained its outlook after reporting growth, as the company said it continues to optimise its portfolio and secure new contract wins.
The Milton Keynes, England-based waste management firm said underlying earnings before interest, tax, depreciation and amortisation rose 2.8% to €22.3 million in its financial first quarter that ended June 30 from €21.7 million the previous year.
Revenue increased 3.0% to €434.4 million from €421.7 million, driven by contract wins in the small-to-medium enterprise segment which mitigated ongoing mixed market conditions, Renewi said.
Over the recent quarter, core net debt increased by 17% to €430.8 million from €368.1 million at the end of March, as a result of seasonal working capital needs.
In May, Renewi announced the sale of its UK Municipal business to Biffa Ltd as part of the company’s portfolio optimisation plans. The transaction has ‘progressed well’ and is on track for completion as expected.
A new partnership with Freepoint Eco-Systems Ltd, a Connecticut-based provider of advanced plastic recycling solutions, aims to divert end-of-life plastics from incineration by developing the sorting and treatment infrastructure.
Renewi’s goal is to supply up to 80,000 tonnes of feedstock to Freepoint’s first European advanced recycling facility, located in Ghent, Belgium.
Chief Executive Officer Otto de Bont said: ‘We continue to deliver on our strategic objectives of portfolio optimisation strengthening our platform and accelerating organic growth. Throughout the quarter we continued to see the benefits of our ’simplify’ programme, which is helping to continually drive improved performance and efficiency. Looking ahead, our FY25 outlook is unchanged, reflecting our strong foundation and our strategic progress.’
The company expects to return to full-year revenue growth and significant margin improvement.
In the medium-term, Renewi is aiming to achieve up to 5% organic growth.
Renewi shares were up 4.2% to 669.00 pence each in London on Tuesday morning.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
