Renewi PLC on Tuesday reported that trading in the final quarter of its financial year has been good, with annual profit now expected to be ‘slightly’ ahead of market consensus.
The waste-to-product company said that current market expectations for its financial 2023 sees revenue at €1.9 billion, earnings before interest, tax, depreciation and amortisation at €254 million, and earnings before interest and tax of €127 million.
In its Commercial Waste Division, the Milton Keynes-based firm said that volumes have shown ‘slight recovery’ in the Netherlands, while in Belgium the decline in volumes has ‘moderated’.
It added that cost increases were mitigated by strong price management combined with cost controls and stable recyclate prices.
In its Mineralz & Water Division, Renewi said it saw a good performance on the waterside whilst making ‘gradual’ progress on certification and future outlets for gravel, sand and filler.
Within its Specialities Division, the firm noted that Coolrec and Maltha continued to perform well.
In regard to its current trading, Renewi said that recyclate prices and volumes are stabilising, and pricing has continued to compensate for cost inflation.
In addition, it noted that that demand for higher quality, low carbon secondary materials is ‘steadily increasing’, requiring more advanced production processes, which it is developing. Renewi said this will strengthen its ‘market leading position in Europe‘s most advanced circular economies’.
Chief Executive Officer Otto de Bont said: ‘Trading in the final quarter of the year has been good and we expect year end profit to be slightly ahead of market expectations. We are pleased to see strong customer loyalty resulting in low churn and stabilising volumes. Inflation impact in the quarter was largely mitigated by our pricing strategy and cost control.
‘In [financial 2024] we will continue to focus on our strategic agenda. We will continue to deliver additional profit from the value drivers, which will offset the ongoing headwinds we have seen in the second half of 2022. While price levels of secondary materials have normalised, the inflation impacts on our business will continue but are expected to ease over the course of 2023.
‘We are stepping up our commercial efforts to build on our leading position in Belgium and the Netherlands and grow in specific market segments, such as healthcare and construction and demolition.’
Renewi will release its results for the year ended March 31 on May 25. Shares in the firm closed 0.3% higher at 607.00 pence on Tuesday in London.
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