Cleanaway Waste Management Limited announced its financial results for the six months ending 31 December 2023 (H1 FY24), showcasing continued strong earnings growth and strategic momentum across its operations.
In a media release, the company reported a Statutory Net Profit after tax of $74.3 million for the period, marking a substantial increase of 51.6 per cent compared to the prior corresponding period (H1 FY23).
Underlying Net Profit after tax reached $82.7 million, reflecting an $8.4 million rise over the Statutory Net Profit, primarily driven by adjustments for costs associated with IT transformation and integration costs related to Global Renewables Holdings.
Net Revenue surged to $1,587.1 million, a notable 7.9 per cent increase from the previous year, propelled by new business acquisitions, enhanced pricing strategies, and sustained organic growth across all segments.
Underlying EBIT reached $173.9 million, marking a significant 25.7 per cent surge from the prior corresponding period, driven by various factors including the robust performance of the NSW/ACT Solids, Container Deposit Scheme (CDS), Liquids, and Industrial & Waste Services (IWS) businesses.
The company also experienced a recovery in contributions from commodities and witnessed positive developments in its Health Services division.
Commenting on the results, Cleanaway’s Chief Executive Officer and Managing Director Mark Schubert expressed satisfaction with the strong financial performance and highlighted the progress made towards achieving the company’s strategic goals outlined in Blueprint 2030.
Schubert stated, “We delivered strong EBIT growth of 25.7% for the period, driven by growth in NSW/ACT Solids, CDS, Liquids, and IWS businesses and the recovery in Old Corrugated Cardboard (OCC) prices.”
He further emphasised the company’s commitment to operational excellence, safety, and sustainability initiatives, including the implementation of a 5-year Health, Safety, and Environment strategy aimed at fostering a safe and inclusive work culture.
Schubert also outlined Cleanaway’s efforts to address labour market challenges, focusing on stabilising the workforce and reducing turnover rates through improved recruitment and retention strategies.
Looking ahead, Schubert reaffirmed Cleanaway’s commitment to achieving its mid-term financial ambitions, including targeting an FY26 EBIT of over $450 million while enhancing Return on Invested Capital (ROIC).
Schubert expressed pride in the dedication and efforts of Cleanaway’s team in serving customers and communities across Australia, underscoring the company’s determination to deliver sustainable growth and value creation in the future.
