Renewi, the London-listed waste-management company, has announced a decline in pretax profit for the first half of fiscal year 2024. The decrease in profit is attributed to lower rebased recyclate prices. However, despite this setback, Renewi remains confident in its ability to meet full-year expectations.
One of the contributing factors to the decline in profit is the normalization of recyclate prices, which had reached record highs during the pandemic. In response to these market changes, Renewi plans to reduce its selling, general, and administrative costs by €15 million ($16.1 million) annually in the second half of the year.
In the six months leading up to September 30, pretax profit stood at €45.4 million, compared to €71.6 million in the previous year. Revenue also experienced a slight dip, falling from €952 million to €937.1 million. The company attributes the decline in revenue to reduced volumes in certain commercial waste sectors, particularly construction and demolition.
However, Renewi remains optimistic about its future outlook. The company maintains its guidance for fiscal year 2024, with a company-compiled consensus estimating revenue to reach GBP1.96 billion.
Despite the challenges faced, Renewi demonstrates resilience and adaptability in managing price and cost dynamics, ensuring a stable financial position. As a result, Renewi also confirms its intention to resume dividend payments at the end of this financial year.