Renewi sees lower hit than expected on quarterly earnings
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.
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.