Renewi plc (RWI)
Renewi plc: Final Results
27-May-2021 / 07:00 GMT/BST
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014
(MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
27 May 2021
Robust PERFORMANCE AND GOOD PROGRESS on GROWTH INITIATIVES
improved OUTLOOK FOR fy22
Renewi plc (LSE: RWI), the leading international waste-to-product business, announces its results for the year ended 31
? Robust results reflect resilient business model, swift Covid-19 cost and cash action, and a significant improvement
in the second half
? Revenue from ongoing businesses flat and revenue from continuing operations down 5% to EUR1,694m1
? Underlying EBIT from ongoing businesses 3% below prior year and above previous guidance at EUR73.0m1
? Statutory profit of EUR11.0m compared to a loss of EUR77.1m in the prior year
? Core net debt* reduced to EUR344m from EUR457m last year, representing net debt to EBITDA of 2.2x
? Material upgrade to our expectations for FY22
? Good progress with innovation pipeline with projects commissioned and in construction, including ATM new products,
BioLNG facility, and a further RetourMatras facility
? Renewi 2.0 programme on track and delivered benefits ahead of plan of EUR2.2m in FY21
? ATM results impacted by delays in approvals to ship TGG, however good progress made, capacity to make new
construction materials commissioned, and three year recovery plan remains on track
? Proposed 1 for 10 share capital consolidation to be included at forthcoming Annual General Meeting
? Our business enables a circular economy: sustainability is our business strategy
? Ambitious "Mission75" launched to increase our recycling rate from 65.8% to an industry-leading 75% over five
years, equivalent to an extra 1.3m tonnes per annum
? A leading ESG model; new ESG evaluation of 83 issued by S&P (up from 75 in 2020)
1The definition and rationale for the use of non-IFRS measures are included in note 17. Ongoing businesses as presented
for the prior year exclude the financial results for the Canada Municipal business sold on 30 September 2019 and the
Reym business sold on 31 October 2019.
* Core net debt used for banking leverage calculations excludes the impact of IFRS 16 lease liabilities and UK PPP net
Otto de Bont, Chief Executive Officer, said:
"Our performance improved as the year progressed, despite the pandemic, and I am pleased to report final results which
are significantly better than we had anticipated in early 2020. This is due to the determined efforts of our people, as
they delivered seamless service to our customers and communities in the most challenging environment. These results
also reflect our swift actions on cost and cash, our resilient business model and the strengthening recyclate prices in
the second half.
"We also made good progress on our key strategic initiatives to deliver sustained growth for Renewi.
"Looking ahead, the Board now expects the Group's performance in FY22 to be materially ahead of its previous
expectations given the Group's strong results in FY21, particularly in the second half, and the prevailing high
"The transition to a circular economy will increase demand for recycling and higher quality recyclates, which supports
our business model. The sustainability agenda and the potential for a "green recovery" driven by the EU and national
governments are expected to present more attractive opportunities for Renewi to convert waste into a wider range of
high-quality secondary materials. We remain confident our three strategic growth initiatives - recovery of earnings at
ATM, the Renewi 2.0 programme and our innovation pipeline - will deliver significant additional earnings over the next
three years and beyond."
FY21 FY20 % change
UNDERLYING NON STATUTORY
Revenue1 ongoing businesses EUR1,693.6m EUR1,697.0m 0%
Underlying EBITDA1 ongoing businesses EUR195.7m EUR187.6m 4%
Underlying EBIT1 ongoing businesses EUR73.0m EUR75.5m -3%
Underlying profit before tax1 ongoing businesses EUR47.4m EUR42.5m +11%
Underlying EPS1 ongoing businesses (cents per share) 4.5c 3.9c +15%
Free cash flow1 EUR141.0m EUR57.8m +144%
Core net debt* EUR344m EUR457m
Core net debt plus IFRS 16 lease liabilities EUR580m EUR669m
Revenue from continuing operations EUR1,693.6m EUR1,775.4m
Operating profit (loss) from continuing operations EUR43.4m EUR(28.1)m
Profit (loss) before tax from continuing operations EUR18.2m EUR(59.4)m
Loss from discontinued operations - EUR(16.6)m
Profit (loss) for the year EUR11.0m EUR(77.1)m
Basic EPS from continuing operations (cents) 1.4c (7.7)c
Cash flow from operating activities EUR258.2m EUR167.8m
1The definition and rationale for the use of non-IFRS measures are included in note 17. Ongoing businesses as presented for the prior year exclude the financial results for the Canada Municipal business sold on 30 September 2019 and the Reym business sold on 31 October 2019. The Canada Municipal segment met the definition of a discontinued operation and is recorded as such.
* Core net debt used for banking leverage calculations excludes the impact of IFRS 16 lease liabilities and UK PPP net debt.
The results for both this year and the prior year are reported applying IFRS 16. Where appropriate, we also disclose certain metrics on an IAS 17 basis as this is relevant particularly for the calculation of leverage for the Group's banking covenants.
For further information:
FTI Consulting Renewi plc
+44 20 3727 1545 +44 7976 321 540
Susanne Yule Adam Richford, Head of IR
+44 20 3727 1340 +44 7773 813 180
Richard Mountain Michelle James, Communications
Notes: 1. Renewi will hold an online analyst presentation at 10.30 a.m. BST today. Webcast: https://channel.royalcast.com/
landingpage/renewi/20210527_1/ 2. A copy of this announcement is available on the Company's website, (www.renewiplc.com). The presentation made to
analysts today will also be available on the website. Forward-looking statements
Certain statements in this announcement constitute "forward-looking statements". Forward-looking statements may sometimes, but not always, be identified by words such as "will", "may", "should", "continue", "believes", "expects", "intends" or similar expressions. These forward-looking statements are subject to risks, uncertainties and other factors which, as a result, could cause Renewi plc's actual future financial condition, performance and results to differ materially from the plans, goals and expectations set out in the forward-looking statements. Such statements are made only as at the date of this announcement and, except to the extent legally required, Renewi plc undertakes no obligation to revise or update such forward-looking statements.
Chief Executive Officer's Statement
The financial performance in the year ended 31 March 2021 was significantly better than we had originally expected at the start of the Covid-19 pandemic. This was driven by our swift actions on cost and cash, our resilient business model and by stronger recyclate prices in the second half. As a result, underlying EBIT from ongoing businesses fell by only 3% to EUR73.0m. With a significant reduction in exceptional items, statutory profit increased to EUR11.0m (FY20: loss of EUR77.1m). Core net debt reduced by EUR113m to EUR344m and our leverage ratio reduced to 2.2x (FY20: 3.0x).
Sustainability is at the heart of our business model. Our purpose of giving new life to used materials enables the circular economy, which is essential if society is to meet its carbon reduction goals. We have therefore maintained our focus on the longer-term strategic drivers for Renewi: increasing our recycling rate; increasing the quantity and quality of the secondary materials we supply; expanding our market share and improving both efficiency and customer service through our Renewi 2.0 programme. Good progress has been made with the strategy and we remain well positioned to benefit from the continuing drive towards circularity of the European economies.
Group financial performance
Renewi made two strategic disposals in the prior year, generating EUR107m gross cash proceeds. The table below includes the results from Reym in the last year prior to its disposal. The Canada Municipal segment is not included as it was reported as a discontinued operation. Renewi subsequently changed the divisional and reporting structure from 1 April 2020 and the prior year comparatives for the ongoing businesses have been restated. Excluding businesses sold in the prior year provides a more representative view of performance in the year. These results therefore focus on ongoing businesses as we believe that this gives a clearer comparator.
Group Summary Revenue Underlying EBIT
FY21 FY20 Variance FY21 FY20 Variance
EURm EURm % EURm EURm %
Commercial Waste 1,240.6 1,250.2 -1% 76.8 78.6 -2%
Mineralz & Water 182.8 151.6 21% 0.3 5.6 -95%
Specialities 300.8 323.2 -7% 2.4 (1.3) N/A
Group central services - - (6.5) (7.4) 12%
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