Renewi sees lower hit than expected on quarterly earnings


Renewi sees lower hit than expected on quarterly earnings

Renewi PLC (LON:RWI) said the hit on earnings for the three months to June 30 was €12mln, against the €20mln previously forecast.

Volumes improved steadily during the quarter, following the initial drop in March as lockdowns were implemented, in both the Netherlands and Belgium commercial waste divisions.

READ: Renewi cuts costs as waste volumes hit by coronavirus lockdown

The waste-to-product business said further recovery depends on how restrictions continue to be eased, including in specific sectors such as hospitality, and how the economy will pick up.

The firm saved €10mln in the quarter thanks to cost-cutting measures, and expects to save a total of €60mln over the year.

Core net debt as at June 30 was €413mln, down from €457mln at the end of March, while the company benefits from €50mln worth of tax being delayed to the next quarter.

“We think that this is a good step in a direction that can take the share price substantially above our target price as the profitability of the business re-establishes,” analysts at house broker Peel Hunt commented.

Shares jumped 7% to 27.7p on Tuesday morning.

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