Renewi published a trading update yesterday (3 October) for the first half of the 2022/23 financial year, which runs from April 2022 to March 2023.
In the update, the company says it expects the decline in construction and green waste volumes to continue until March, though volumes across its other divisions “remain stable”.
Renewi said it had “traded well” in the six months to September and expected this year’s revenues to exceed those of 2021/22.
The prices for recylates remain “above historic averages”, Renewi says, though paper, plastic and metal prices have fallen during the second quarter of the year.
However, the company added it was “mindful” of inflationary cost pressures such as energy prices and a “challenging macroeconomic environment” in the second half of the year.
In a statement, Renewi said: “With inflation increasing to low double digits in the main countries we operate in, for a significant part driven by energy prices, we continue to focus on cost control and passing on price increases to customers.”
Acquisition
Within the trading update, Renewi announced it completed the acquisition of Amsterdam-based commercial waste management company Paro for €67 million (£58 million) on 1 August.
Renewi said it had net debts of €390 million (£340 million) on 30 September, up from €303 million (£264 million) in March, which reflects the acquisition and “ongoing innovation pipeline investments during the period”.
“We remain confident of the medium- and long-term prospects as we see continued development of the circular economy and evolution of the market for low carbon secondary materials,” the company said.
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