Renewi Turns To Profit In H1; Now Sees FY Results Materially Ahead Of Outlook; Stock Up

Waste-to-product company Renewi Plc (RWI.L) reported Tuesday that its first-half profit before tax was 4.4 million euros, compared to last year’s loss of 17.8 million euros.

Basic earnings per share from continuing operations was 0.5 euro cents, compared to loss of 2.4 cents a year ago.

Underlying profit before tax was 15.3 million euros, down 24 percent from 20.2 million euros last year. Underlying earnings per share from ongoing businesses was 1.5 cents, down from 1.9 cents a year ago.

Revenue from continuing operations declined to 821.4 million euros from prior year’s 915.7 million euros. Underlying revenues dropped 3 percent.

Looking ahead, the company said its Board now anticipates a performance materially ahead of previous expectations.

Otto de Bont, Chief Executive Officer, said, “Whilst further lockdown measures to contain Covid-19 have recently been reintroduced in the Benelux and could persist during the rest of the second half, our resilient trading in the first half, which included a period of extensive lockdown measures in the first quarter, allows us to anticipate a full year performance which is materially ahead of our previous expectations.

The Board remains cautious about the macroeconomic outlook, in particular any potential future slowdown in the later-cycle Dutch construction market.

Over the longer term, the company said it remains confident that its three strategic growth initiatives will deliver significant additional earnings over the next three years and beyond.

In London, Renewi shares were trading at 25.85 pence, up 4.87 percent.

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