Waste collection company Biffa today posted “strong” financial results as high commodity prices bolstered the firm’s recycling business whilst offsetting far-reaching inflationary pressures.
The High Wycombe headquartered firm said it had cut its statutory losses by 57 per cent from £40.5m in 2021 to 17.6m in 2022.
The stronger financial performance came as Biffa’s net revenues surged 38 per cent to £1.363bn as business returned to normal after Covid and surging commodity prices boosted the firm’s revenues.
Biffa said its industrial and commercial waste collections business was hit by inflation as it was forced to pay more for fuel, equipment, and vehicles.
A countrywide shortage of heavy goods vehicle (HGV) drivers also dampened Biffa’s profits as the firm was forced to negotiate with unions to offer a better pay deal.
However, higher commodity prices also bolstered the revenues Biffa generated from its recycling business as the firm was able to sell recycled materials for higher prices.
The closure of Biffa’s Westmill Landfill site in Hertfordshire also hit the company’s business as it cut the volumes of landfill gas it was able to collect and sell to customers.
The hit was however partially offset by higher gas prices, following Russia’s invasion of Ukraine and the economic disruption caused by Covid-19.
Biffa’s revenues from its collections division surged 11,9 per cent to £873.9 as revenues from its business selling materials and gas taken from waste jumped 35.2 per cent to £395.2m
Looking forwards, he firm set out plans to capitlaise on the transition to net zero by seeking to win more local authority contracts via the benefits of its electric-powered bin trucks.