Cleanaway shares drop despite strong earnings results
Make us a preferred source
Make us a preferred source on Google
More news: Cleanaway shares fell 1.32% during early trading on the ASX despite posting a 51.6% jump in net profit for the first half of the financial year.
The company noted it expanded margins due to productivity and efficient gains.
Cleanaway confirms guidance after first-half profit lift
The news: Waste management company Cleanaway has posted a sharp jump in half-year profit on the back of new business and price increases.
The numbers: The company said net profit for the six months to December 2023 rose 51.6% to $74.3 million, with revenue up 5.3% to $1.87 billion. On an underlying basis, profit was up 23.6% to $82.7 million after adjustments for IT transformation and integration costs. It will pay an unchanged interim dividend of 2.45 cents a share.
The context: The company said it expanded margins on the back of productivity and efficiency gains and a recovery in contribution from commodities.
Cleanaway has reiterated full-year guidance for earnings before interest and taxes of $350 million and also said it is on track to deliver on the "mid-term financial ambition" of earnings of more than $450 million in FY26.
The source: ASX announcements
