25th May 2023 11:18
(Alliance News) - Renewi PLC on Thursday posted stable profit and revenue in its recently ended financial year despite lower recyclate prices and lower volumes.
The waste-to-product company posted a pretax profit of EUR93.1 million in the year ended March 31, down 2.7% from EUR95.7 million the year prior.
Revenue in the year stayed broadly flat at EUR1.89 billion compared to GBP1.87 billion the year prior, up just 1.2% year-on-year.
Renewi said it effectively mitigated lower recyclate prices, lower volumes and high inflation in the year through ongoing cost control and customer price increases.
It said it continues to trade in line with market expectations for financial 2024 and added that recycled metal, paper, and plastics prices are expected to be more stable this financial year.
"Although the macroeconomic environment remains unpredictable, Renewi has proven that it is able to operate successfully in the recent years of high volatility, adapting our cost structure to reduced volumes and protecting our margins by passing on cost increases to customers," Chief Executive Otto de Bont said.
"Renewi is now well positioned to focus on growing both the top line and profitability of its core businesses for the longer term. Over the next five years, our aim is to accelerate revenue growth targeting EUR3 billion at high single-digit margins as a minimum. We will achieve growth through market share gains, by extracting more value from waste by deploying advanced recycling and by targeted acquisitions. [Earnings before interest and tax] improvement is expected to grow even faster, driven by growth and cost reduction through digitisation."
The Milton Keynes, England-based firm said it aims to recommence a dividend in financial 2024.
Shares in Renewi were 2.1% lower at 574.00 pence on Thursday morning in London.
By Heather Rydings, Alliance News senior economics reporter
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