Shares of Renewi (LON: RWI) have risen Tuesday after the company reported its results for the six months ended 30 September 2021, showing a rise in revenue and underlying profit.
The company said it delivered a strong performance with revenue up 11% to €916m, which was driven by the Covid recovery and ongoing stronger recyclate prices. Underlying EBIT rose 125% to €63.8m, driven by commercial waste. Pretax profit was reported at €44.7 million from €4.4 million the previous year.
In addition, the company further increased its FY22 expectations, stating: “We remain confident our three strategic growth initiatives – our innovation pipeline, recovery of earnings at ATM, and the Renewi 2.0 programme – will deliver significant additional earnings over the coming years as well as the longer term.”Â
Otto de Bont, CEO of Renewi, said: “Renewi delivered a strong performance in the first half of FY22, with underlying EBIT 125% above prior year and 69% above the pre-Covid first half of FY20. 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. Â
“Following this strong first half, the Board is further increasing its full-year expectations, which assume a moderation of recyclate prices in the second half as well as a reduced throughput at ATM.”
Renewi shares are currently up 11.55% at 814p, adding to its 96.8% year-to-date gains.
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