RENEWI PLC

Earnings Release • Jan 28, 2022

Renewi plc: Third Quarter Trading update and material upgrade to exp... https://www.dgap.de/dgap/News/uk_regulatory/renewi-plc-third-quarter...

Nachricht vom 28.01.2022 | 08:00

Renewi plc: Third Quarter Trading update and material upgrade to expectations

Renewi plc (RWI) 28-Jan-2022 / 07:00 GMT/BST Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. Overall trading for the Group in the period has continued to be very strong, driven by

28 January 2022

Renewi plc

("Renewi", the "Company" or, together with its subsidiaries, the "Group")

Third Quarter Trading update and material upgrade to expectations

Renewi plc (LSE: RWI), the leading European waste-to-product business, announces its trading update for the third quarter ended 31 December 2021 ("third quarter" or the "period").

continuing high recyclate prices, and the Board today announces a further material upgrade to least €120m for the year (FY21: €73m).

Trading and cash performance

its expectations for the year ending 31 March 2022. Underlying EBIT is now expected to be at The Commercial Waste Division has continued to perform very well in the third quarter. Recyclate prices have consistently traded at high levels compared to the prior year, more than offsetting softening volumes, particularly in Covid-impacted sectors such as hospitality and later cycle construction. Recyclate prices have been driven by positive supply/demand factors and high commodity prices as well as by an increasing demand for secondary materials. Volumes in the Netherlands and Belgium in the third quarter were 91% and 93% of prior year respectively. While labour markets have tightened, this has not to date materially impacted costs or operational effectiveness.

The Mineralz & Water Division performed in line with our revised expectations. Mineralz and the waterside of ATM have continued to perform well, offsetting lower volumes and increased disposal costs on the soil treatment line. In November 2021, the Dutch National Institute for Public Health and the Environment (RIVM) published a report to evaluate the environmental standards for secondary mineral products, including thermally cleaned soil (TGG) and bottom ashes from incinerators amongst others. It concluded the current legislation is not effective and amendments will be brought forward. This should bring much-needed clarity to this important area of secondary materials. recyclate prices and a strong performance at Coolrec. UK Municipal continues to benefit from We have continued to make good progress with our circular innovation investments, with lines and for the new plastics line at Acht. Commissioning of both the bio-LNG and new food waste handling hall in Amsterdam is progressing well. The Renewi 2.0 programme remains on Cash performance continued to be strong. Core net debt (excluding IFRS 16 lease liabilities)

The Specialities Division performed in line with our expectations, with ongoing benefits from recyclate prices, offset by costs from a fire in Cumbria in November.

construction contracts now awarded or in late negotiations for the Flemish advanced sorting track to deliver its target net benefit of €5m for the year.

at 31 December 2021 was €301m, representing a reduction of €35m since 30 September 2021 and

the leverage ratio has reduced to 1.52x from 1.82x at 30 September 2021.

Outlook

The continuing strong performance in the third quarter, supported by confidence that recyclate prices will continue to be robust in the fourth quarter, means that the Board is today announcing a further material upgrade to its expectations for the year ending 31 March 2022. Underlying EBIT is now expected to be at least €120m for the year (FY21: €73m). Recyclate margins are expected to contribute around €40m of additional EBIT for the full year compared to the prior year.

Whilst in the short term we are alert to the macroeconomic environment, inflationary pressures and to recyclate prices, we remain confident in the medium and long-term outlook for the business. Our strategic growth programme, driven by our Innovation pipeline, is on track to deliver significant additional earnings over the next three years and beyond, as is our internal Renewi2.0 digitisation and simplification programme. While ATM's recovery has been delayed, as reported at the interims, we expect it will generate material additional earnings in the medium term as well.

Our business model enables advanced circular economies to achieve their carbon reduction targets, meet consumer needs and corporate ESG goals such as secondary material content targets. We continue to see positive structural growth drivers as the Dutch and Belgian regional governments progressively tax carbon emitters, incentivise recycling over incineration, and promote the use of secondary materials. We consistently see long-term growth opportunities across our markets as we assist our customers to recycle more and to use our high-quality secondary materials.

For further information:

Renewi plc

Adam Richford, Head of IR +44 7976 321 540

Paternoster Communications

Tom Buchanan +44 20 3012 0241

Michelle James, Communications +44 7773 813 180

Ben Honan +44 20 3012 0241

www.renewi.com

About Renewi

Renewi is a pure-play recycling company with a focus on extracting value from waste and used materials rather than disposal through incineration or landfill. The company also plays a key role in limiting resource scarcity through the creation of secondary materials, and by so doing addresses both social and regulatory trends and contributes to creating a cleaner, greener world.

tonnes of CO2 and as a result plays a part in contributing to a sustainable society, Renewi, which draws on innovation and the latest technology to turn waste into useful materials - paper, metals, plastics, glass, wood, building materials, compost and energy employs over 6 500 people who work on 165 operating sites in 6 countries across Europe and the UK. Renewi is recognised as a market leader in Benelux and a regional European leader in recycling.

About Renewi
greener world.	Renewi is a pure-play recycling company with a focus on extracting value from waste and used materials rather than disposal through incineration or landfill. The company also plays a key role in limiting resource scarcity through the creation of secondary materials, and by so
	Renewi's vision is to be the leading waste-to-product company in the world's most advanced circular economies. By opting to recycle, the company avoids emissions of more than 3 million transitioning to a circular economy and driving the progress needed to halt climate change.
recycling.	Renewi, which draws on innovation and the latest technology to turn waste into useful materials - paper, metals, plastics, glass, wood, building materials, compost and energy - employs over 6 500 people who work on 165 operating sites in 6 countries across Europe and the UK. Renewi is recognised as a market leader in Benelux and a regional European leader in
	Visit our website for more information: www.renewi.com.
ISIN: Category Code: TIDM: LEI Code: OAM Categories: Sequence No.:	GB00BNR4T868 TST RWI 213800CNEIDZBL17KU22 3.1. Additional regulated information required to be disclosed under the laws of a Member State 139406 1273848
EQS News ID:

Renewi plc: Third Quarter Trading update and material upgrade to exp... https://www.dgap.de/dgap/News/uk_regulatory/renewi-plc-third-quarter...

Renewi plc: Third Quarter Trading update and material upgrade to exp	https://www.dgap.de/dgap/News/uk_regulatory/renewi-plc-third-quarter
End of Announcement	EQS News Service
Interaktiv
Weitere Unternehmensdetails
News per Mail erhalten
News empfehlen
News drucken
DGAP-Watchlist
E-Mail
Passwort
Einloggen
Passwort vergessen?
zur Registrierung
Weitere News
weitere News anzeigen

Twitter | Impressum | AGB | Datenschutzhinweise | Cookie-Richtlinie