Sims delivers "significantly better results" in H1 of 2020/21

Sims CEO and Managing Director Alistair Field
16.02.2021 − 

US-Australian scrap recycler Sims achieved higher earnings in its first financial half despite lower revenues, the company reported on 15 February. Sales revenues in the six months ended 31 December slipped nearly 10 per cent to AUD2.452bn (ca. €1.572bn), but statutory earnings before interest and tax (EBIT) were back in positive territory at AUD79m. Sims posted a net profit AUD53m after the prior-year's first half loss of AUD91m.

"We delivered significantly better results in first half FY21 due to improved margins, higher prices and lower operating costs," said Sims CEO Alistair Field. He highlighted the role of Sims' cost reduction programme, which was on track to achieve annualised cost savings in excess of AUD70m in the current financial year compared to the baseline year of 2018/19.

Sims attributed the decrease in consolidated revenues to reduced sales volumes, the composition of sales, and the sold European WEEE recycling activities. Intake volumes, while lower than in the prior-year-period had increased by 9 per cent compared to the previous half when the economy had been more heavily hit by the impact of the coronavirus. Prices had also improved during the reporting period, particularly during November and December 2020, driven by limited supply and increased demand in many industrial sectors, Sims reported.

The full report on Sims' performance in its financial first half, including its regional performance and the progress made under its growth strategy will appear in the next issue of EUWID Recycling & Waste Management, out 24 February.

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