The results, for the six months to September 2023, show overall €1.89 billion in underlying and earnings before tax of €113.6m, which were lower than the same time last year with a change of 2% and 14% respectively.
Renewi said that during the year it had effectively mitigated lower recyclate prices, lower volumes and high inflation through ongoing cost control and customer price increases.
Renewi’s UK operations include six contracts: Argyll and Bute, Barnsley Doncaster and Rotherham, Cumbria, East London, Elstow and Wakefield.
A “cash outflow” of €9.8m was recorded here, slightly higher than the prior year (€7.1 million) “albeit lower than anticipated”. This is against €92.8 million of UK revenues.
Renewi added that the the “UK Municipal business showed stable operational performance in expectations in the first half”. The contracts have been loss making for a number of years.
A review of its UK operations is ongoing, with a final decision due in the first half of 2024.
‘Reducing costs’
Commenting on the results, Otto de Bont, chief executive officer, said: “Our first half performance was in line with our expectations and previous guidance from October. The period saw recyclate prices reverting to more normalised levels, following the unprecedented Covid peak. Volumes mostly stabilised, except in Construction and Demolition waste in the Netherlands. In response, we are taking strong action by reducing our SG&A cost base by €15m on an annual basis.”
Mr de Bont added: “Alongside reducing costs, we continue to benefit from previous strategic actions. For example, Mineralz & Water have ramped up production of sand and gravel in our soil cleaning business as of September and we expect to show sharply improved results in H2. We continued to invest in future organic growth; at Maltha the operational enhancements enabled the business to achieve a record-breaking performance in the period.”
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