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• Revenue of €937m and underlying EBIT1 of €50.7m (HY23: €952m and €75.2m respectively), reflects re-based recyclate prices together with a subdued volume environment in certain commercial waste sectors and particularly construction & demolition (“C&D”)
• Underlying EBITDA of €113.6m (HY23: €131.9m)
• Statutory profit after tax of €35.3m (HY23: €53.4m) and basic EPS of 42 cents (HY23: 66 cents)
• Net cash inflow from operating activities of €88.8m (HY23: €74.0m) due to improvements in working capital
• Core net debt* to EBITDA of 2.1x (March 2023: 1.8x) with core net debt increased to €383.2m (March 2023: €370.6m), in line with expectations

Margin focus:

• Renewi 2.0 is now successfully completed and the programme has supported productivity in HY24
• Additional actions to be implemented in H2 to reduce SG&A and other costs by €15m on an annual basis, with capability and capacity retained

Portfolio actions:

• As previously announced, strategic review of UK Municipal on track, targeted outcome in the first half of 2024
• Strong Q2 performance in Mineralz & Water ("M&W"), following ramp-up of sand and gravel production, with H2 expected to show sharply improved results, in line with the performance enhancement plan

Accelerated growth:

• Successfully commissioned a hard plastics sorting facility in Acht, Netherlands which is expected to achieve at least group hurdle returns over the course of 2024
• The Group had a number of customer wins including the Dutch Ministry of Defence, TotalEnergies and Custodial Institutions Agency
• Renewi’s Specialities business Maltha, continued to achieve record-breaking performance due to operational enhancements and strategic investments. Coolrec maintained strong volumes in the period, though plastics prices were lower

Current trading and outlook – on track to achieve full year expectations

• Full year guidance unchanged from trading update of 4 October 2023
• Revenue stable as a result of targeted commercial initiatives and structural drivers, including Vlarema 8 legislation, expected to support resilient H2 demand across Commercial Waste Belgium, M&W and the Specialities businesses which will mitigate in part continued low levels of C&D activity in the Netherlands
• Significantly stronger EBIT performance in H2 underpinned by continued M&W earnings recovery, the initial contribution from SG&A cost actions, pricing and further productivity initiatives. Further benefits of our margin and portfolio initiatives, together with stabilised recyclate prices and tailwinds generated by Renewi 2.0, underpin confidence in good progress in FY25

Strategy in place to achieve sustainable improvements in margins and cash conversion in the medium term

• Deliver >5% p.a. organic sales growth through growth initiatives, increased recycling conversion and targeted market share gains
• High single digit EBIT margins
• Free cash flow generation at least 40% of EBITDA
• ROCE of over 15%
• Disciplined capital allocation strategy focused on attractive and sustainable shareholder value whilst maintaining strong balance sheet as outlined at the Group’s Capital Markets Event

Whilst we are mindful of the current challenging macroeconomic backdrop, our full year expectations are unchanged from the guidance provided in the trading update of 4 October 2023.

Targeted commercial initiatives and structural drivers, including Vlarema 8 legislation, are expected to support resilient demand in the near term across Commercial Waste Belgium, M&W and the Specialities businesses, which will mitigate, in part, continued low levels of C&D activity in the Netherlands over the second half. We anticipate the Dutch construction market will revert to growth by late 2024 or early 2025.

We continue to expect a significantly stronger EBIT performance in second half, underpinned by continued M&W earnings recovery, the initial contribution from additional SG&A cost actions, effective pricing and further productivity initiatives. Further benefits of our margin and portfolio initiatives, together with stabilised recyclate prices and tailwinds generated by Renewi 2.0, underpin confidence in further progress in FY25.

In the longer term we remain confident that, with regulation driving increasing demand for recycled materials, Renewi is well positioned for growth in its markets and to serve customers profitably as the circular economy develops and the market for low carbon secondary materials evolves.