Renewi, the London-listed waste-management business, recently announced its upbeat expectations for fiscal year 2024. The company projects that its performance will align with the board’s expectations, with an added bonus of a significantly improved cash performance. Renewi anticipates its cash flow to exceed initial estimates by 10 million euros to 15 million euros ($10.5 million to $15.7 million).
The better-than-expected results can be attributed to Renewi’s heightened focus on optimizing working capital and reducing capital expenditure. Through these measures, the company aims to drive higher and more sustainable returns.
To achieve its goals, Renewi has initiated various commercial, operational, and financial initiatives. These endeavors will support organic revenue growth of over 5% per year and high single-digit earnings before interest and taxes. Additionally, Renewi expects that free cash flow generation will account for at least 40% of earnings before interest, taxes, depreciation, and amortization.
With a return to sustainable free cash generation on the horizon, Renewi plans to implement a capital allocation strategy that encompasses the revival of an ordinary dividend and supplementary returns to shareholders. The company is confident in its potential for growth and looks forward to delivering sustainable shareholder returns.
“Our business has tremendous potential, and today we will outline how our strategy is driving both top and bottom-line growth while ensuring sustainable shareholder returns,” stated Chief Executive Otto de Bont.