Renewi surges as it lifts full-year expectations

Recycling company Renewi lifted its full-year expectations on Tuesday following a "strong" first-half performance.

In the six months to 30 September, revenue rose 11% to €916m, driven by a recovery from the Covid pandemic and stronger recyclate prices.

Underlying earnings before interest, tax, depreciation and amortisation grew 43% to €126.6m, while underlying earnings before interest and tax were up 125% to €63.8m, driven by the commercial waste segment.

Statutory pre-tax profit came in at €44.7m versus €4.4m in the same period a year ago, while underlying pre-tax profit rose 229% to €50.4m.

Renewi said that following the strong performance in the first half and previous increased guidance expectations, "the board is further increasing its FY22 expectations". These assume a moderation of recyclate prices in the second half as well as a reduced throughput at its ATM facility. The company did not quantify the increased guidance.

Chief executive officer Otto de Bont said: "We have successfully retained some of the structural cost savings made in response to the Covid-19 pandemic and these, combined with volume recovery and ongoing strong recyclate prices, have contributed to the significant increase in margins and profits."

At 1045 GMT, the shares were up 10.3% at 804.92p.