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LONDON - Renewi plc (LSE:RWI.L), a European leader in waste-to-product services, announced a year-on-year revenue increase of 4.2% to €1,307.8 million for the nine months ending December 31, 2024, despite persistent regional economic sluggishness. The company’s underlying earnings before interest and taxes (EBIT) also rose by 8.4% to €77.6 million, supported by strong performances in its Mineralz & Water and Specialities divisions and reduced selling, general and administrative (SG&A) expenses.
Core net debt increased to €507.2 million, up from €368.1 million in March 2024, following the financing of the disposal of Renewi’s UK Municipal operations to Biffa Limited, completed on October 10, 2024. The company maintains its deleveraging target, aiming to reduce its core net debt to EBITDA ratio by 0.4-0.5x annually to reach 2x over the medium term.
In the Commercial Waste sector, revenue growth was driven by higher prices, which helped to counterbalance lower volumes. However, margin expansion was slower than anticipated, attributed to a change in customer mix and a dip in recyclate prices. The company resolved incineration capacity issues in the third quarter, which had previously led to increased waste costs. Renewi also secured a significant waste management contract with FrieslandCampina and expanded its Green Collective partnership, further reducing CO2 emissions and enhancing urban safety.
The company’s Mineralz & Water segment continued to perform strongly, benefiting from a favorable product mix and robust waterside operations. The treatment of contaminated soil and new offtake contracts for Forz®Sand-T also contributed to long-term business stability.
Specialities continued to see strong revenue growth, although EBIT was affected by lower recyclate prices and volumes. Renewi’s investment in polyvinyl butyral (PVB) recycling at its Lommel, Belgium site represents a commitment to sustainable practices, offering a greener solution for materials traditionally destined for landfill.
The One Renewi initiative, aimed at enhancing logistics and processing capabilities and driving standardization across the company, has resulted in lower SG&A costs through the full implementation of the "Simplify" program.
Looking forward, Renewi expects to maintain solid progress in FY25, with positive growth momentum as it enters the final quarter. The company is implementing further productivity and cost initiatives to counterbalance additional costs and market challenges experienced in Q3. Renewi’s medium-term targets include achieving a high-single digit underlying EBIT margin and organic annual revenue growth of more than 5%, although these aspirations are subject to various assumptions and uncertainties.
This report is based on a press release statement from Renewi plc.
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