Waste processor Renewi cuts spending. The company that processes less waste as a result of the corona crisis wants to reduce costs through further digitization and optimizing processes. In the current financial year, 60 million euros will be ‘saved’. Partly through an ongoing savings program and partly through postponement of expenditure. The final dividend will also be canceled.
Due to the crisis and accompanying uncertainties, the company’s management already voluntarily waived 20 percent of the wages and other people at the top of the company also lost 10 percent during the crisis period. Bonuses for the past fiscal year that ran through March are paid in shares only, to keep money in cash. Bonuses and extras for the current financial year have also been removed.
Renewi already intervened in the flexible shell to reduce costs. It is not yet known whether permanent jobs will disappear. CEO Otto de Bont explains that this also has to do with the total impact of the crisis. According to him, the month of May was already better than the month of April. And in June the situation seems to normalize further.
In any case, the impact of Covid-19 in the Netherlands is limited. Environmental streets remained open and the lockdown measures had only a limited impact. De Bont states that at the lowest point, 15 percent less waste was processed. In Belgium, where more stringent measures applied, the volume was more than a third less.
According to De Bont, intervention in the workforce is necessary if there is a structural volume decrease of at least 5 percent. It is still too early to decide on that.
Renewi closed the fiscal year ending March with a turnover of 1.7 billion euros. That was 2 percent more than a year earlier. Furthermore, a loss of more than 77 million euros remained. This was mainly due to depreciation on parts that were previously sold. De Bont expects to be rid of past issues of this kind in the 2021 financial year.
Maurice Esma, a co-founder of EconomicInform is a freelance journalist with the expertise in international finance and corporate rights. The author can be reached by email firstname.lastname@example.org