LONDON (ShareCast) - (Sharecast News) - Waste-to-product specialist Renewi reported a 3% year-on-year increase in revenue to €434.4m for its first quarter on Tuesday, driven by higher core volumes and input prices across its commercial waste and specialities divisions.
The FTSE 250 company said its underlying EBIT also saw a 3% rise to €22.3m, despite facing challenges such as lower one-off gains in the commercial waste division, which were largely offset by higher input prices and successful cost reduction efforts.

Its net debt increased to €430.8m, up from €368.1m at the end of March, primarily due to seasonal working capital factors that were expected to normalise over the course of the year.

Renewi said its sale of the UK municipal division was progressing well, with Competition and Markets Authority (CMA) approval obtained and completion on track for later in the year.

Renewi said it was continuing to advance its strategic objectives, focusing on portfolio optimisation, strengthening core operations, and achieving organic growth of over 5%.

The company said it was on track to complete the sale of UK municipal to Biffa, and was making progress in its Mineralz & Water (M&W) recovery plan.

Additionally, the company's 'Simplify' programme, aimed at streamlining staff functions and reducing costs, was yielding expected savings, while the 'Future Fit' digitisation programme was enhancing operational efficiency.

The commercial waste division experienced mixed demand conditions, reflecting broader economic challenges in the region.

However, Renewi's sales strategy, particularly in the small-to-medium enterprise segment, helped mitigate the challenges.

In the specialities division, Coolrec and Maltha continued to show strong growth, driven by new contracts and operational improvements.

Renewi also announced a partnership with Freepoint Eco-Systems to develop infrastructure that would divert end-of-life plastics from incineration, supplying feedstock to Freepoint's first European advanced recycling facility in Belgium.

Additionally, the company introduced a digital carbon dioxide and recycling reporting tool for its Dutch customers, in line with the European Corporate Sustainability Reporting Directive (CSRD).

Looking ahead, Renewi said it expected continued progress in the 2025 financial year, with growth momentum increasing as the year advanced.

The company said it remained committed to achieving its medium-term targets, including a high-single digit underlying EBIT margin and organic annual revenue growth of over 5%.

Leverage was expected to rise temporarily upon completion of the UK municipal sale, before declining as stronger cash generation is realised.

"We continue to deliver on our strategic objectives of portfolio optimisation strengthening our platform and accelerating organic growth," said chief executive officer Otto de Bont.

"Throughout the quarter we continued to see the benefits of our 'Simplify' programme, which is helping to continually drive improved performance and efficiency.

"Looking ahead, our 2025 financial year outlook is unchanged, reflecting our strong foundation and our strategic progress."

At 1026 BST, shares in Renewi were up 3.74% at 666p.

Reporting by Josh White for Sharecast.com.

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