Preliminary Results FY21
27 May 2021
Recyling waste rather than sending it to incineration or landfill is a priority for Renewi. This dust extraction system, situated at our East London site, removes airborne dust particles generated during separation.
Robust performance and good progress on growth initiatives Improved outlook for FY22.
Renewi plc (LSE: RWI), the leading international waste-to-product business, announces its results for the year ended 31 March 2021.
Financial Highlights
Robust results reflect resilient business model, swift Covid-19 cost and cash action, and a significant improvement in the second half
Revenue from ongoing businesses flat and revenue from continuing operations down 5% to €1,694m1
Underlying EBIT from ongoing businesses 3% below prior year and above previous guidance at €73.0m1
Statutory profit of €11.0m compared to a loss of €77.1m in the prior year
Core net debt* reduced to €344m from €457m last year, representing net debt to EBITDA of 2.2x
Material upgrade to our expectations for FY22
Strategic Highlights
Good progress with innovation pipeline with projects commissioned and in construction, including ATM new products, BioLNG facility, and a further RetourMatras facility
Renewi 2.0 programme on track and delivered benefits ahead of plan of €2.2m in FY21
ATM results impacted by delays in approvals to ship TGG, however good progress made, capacity to make new construction materials commissioned, and three year recovery plan remains on track
Proposed 1 for 10 share capital consolidation to be included at forthcoming Annual General Meeting
Sustainability
Our business enables a circular economy: sustainability is our business strategy
Ambitious “Mission75” launched to increase our recycling rate from 65.8% to an industry-leading 75% over five years, equivalent to an extra 1.3m tonnes per annum
A leading ESG model; new ESG evaluation of 83 issued by S&P (up from 75 in 2020)
1The definition and rationale for the use of non-IFRS measures are included in note 17. Ongoing businesses as presented for the prior year exclude the financial results for the Canada Municipal business sold on 30 September 2019 and the Reym business sold on 31 October 2019.
* Core net debt used for banking leverage calculations excludes the impact of IFRS 16 lease liabilities and UK PPP net debt.
Otto de Bont, Chief Executive Officer, said:
“Our performance improved as the year progressed, despite the pandemic, and I am pleased to report final results which are significantly better than we had anticipated in early 2020. This is due to the determined efforts of our people, as they delivered seamless service to our customers and communities in the most challenging environment. These results also reflect our swift actions on cost and cash, our resilient business model and the strengthening recyclate prices in the second half."
“We also made good progress on our key strategic initiatives to deliver sustained growth for Renewi."
“Looking ahead, the Board now expects the Group’s performance in FY22 to be materially ahead of its previous expectations given the Group’s strong results in FY21, particularly in the second half, and the prevailing high recyclate prices."
“The transition to a circular economy will increase demand for recycling and higher quality recyclates, which supports our business model. The sustainability agenda and the potential for a “green recovery” driven by the EU and national governments are expected to present more attractive opportunities for Renewi to convert waste into a wider range of high-quality secondary materials. We remain confident our three strategic growth initiatives – recovery of earnings at ATM, the Renewi 2.0 programme and our innovation pipeline – will deliver significant additional earnings over the next three years and beyond.”