Sims sees healthy fiscal year 2021 profits

Sims sees healthy fiscal year 2021 profits
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A return to better economic and scrap market conditions in 2021 is portrayed in the most recent earnings report from Australia-based Sims Limited, which operates scrap yards, ITAD facilities and other recycling operations in the that nation, North America and the United Kingdom.

The first six months of 2021 concluded the company’s fiscal year, and with the most severe COVID-19 impacts having been in the first half of 2020 (and thus the prior fiscal year), the rebound is noticeable.

In its 2021 fiscal year, Sims’ sales revenue grew by 20.5 percent compared with the prior fiscal year, while its underlying earnings before interest, taxes, depreciation and amortization (EBITDA) soared by more than 300 percent.

In the first six months of this calendar year, Sims’ EBITDA rose a whopping 1,320 percent compared with the first six months of 2020, when global economies were severely affected by COVID-19-restrictions.

“We reported a strong set of operational and financial results for the year ended 30 June 2021, including proprietary intake and sales volumes growth and margin expansion year on year, driven by material improvement in market prices,” states Sims Group CEO and Managing Director Alistair Field.

Adds Field, “I’m pleased with the strong and sustained second-half recovery and the substantial progress made in advancing our growth strategy during fiscal year 2021, which—coupled with the positive medium and long-term industry drivers—stand us in good stead for fiscal year 2022 and beyond.”

Sims says its underlying earnings before interest and taxes (EBIT) for its North America Metal business unit was A$137 million ($99.1 million) in fiscal year 2021. That compares with a loss of A$39 million ($28.2 million) the previous fiscal year. “This increase was due to cost reduction initiatives during the period, improved margins across both ferrous and non-ferrous and contributions from the Alumisource acquisition,” states the company.

Its metals recycling operations in the United Kingdom, Australia and New Zealand also enjoyed much healthier profits in fiscal year 2021 compared with 2020.

The company’s ITAD business unit, Sims Lifecycle Services (SLS), garnered EBIT of A$21.8 million ($15.8 million) in fiscal year 2021, compared with just A$2.9 million ($2.1 million) the prior fiscal year. “The improved EBIT growth trajectory in fiscal year 2021 was due to continued strong interest in the specialized expertise and complete service offerings of the business as well as lower controllable costs compared with fiscal year 2020,” Sims says of its SLS results.

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Source: Recycling Today
Sims sees healthy fiscal year 2021 profits
<![CDATA[A return to better economic and scrap market conditions in 2021 is portrayed in the most recent earnings report from Australia-based Sims Limited, which operates scrap yards, ITAD facilities and other recycling operations in the that nation, North America and the United Kingdom.The first six months of 2021 concluded the company’s fiscal year, and with the most severe COVID-19 impacts having been in the first half of 2020 (and thus the prior fiscal year), the rebound is noticeable.In its 2021 fiscal year, Sims’ sales revenue grew by 20.5 percent compared with the prior fiscal year, while its underlying earnings before interest, taxes, depreciation and amortization (EBITDA) soared by more than 300 percent.In the first six months of this calendar year, Sims’ EBITDA rose a whopping 1,320 percent compared with the first six months of 2020, when global economies were severely affected by COVID-19-restrictions.“We reported a strong set of operational and financial results for the year ended 30 June 2021, including proprietary intake and sales volumes growth and margin expansion year on year, driven by material improvement in market prices,” states Sims Group CEO and Managing Director Alistair Field.Adds Field, “I’m pleased with the strong and sustained second-half recovery and the…