Cleanaway posts double-digit earnings growth, lifts dividend
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The news: Cleanaway Waste Management posted double-digit earnings growth in the 2024 financial year and said it remains on track to deliver its mid-term financial goal of more than $450 million in earnings before interest and taxes in FY26.
The numbers: Cleanaway reported net profit after tax of $170.6 million, up 14.8% year on year. Net revenue climbed 7.7% to $3.2 billion while underlying EBIT grew 18.9% to $359.2 million.
The company declared a final dividend of 2.55 cents per share, taking total full-year dividends to 5 cents, up from 4.9 cents in FY23.
Cleanaway said its F25 underlying EBIT is expected to be in the range of $395 million to $425 million.
The context: Cleanaway, which agreed to buy Melbourne-based Citywide Waste for $110 million in June, said its full-year earnings rise was driven by the execution of profitability restoration strategies for its QLD Solids operations and its health services business, as well as a strong performance from NSW Solids and its liquid technical cervices businesses.
The company said it expects to close out its operational excellence 'restoration' workstream in FY25, given its progress in restoring QLD Solids, transforming its health services segment and boosting labour productivity.
What they said: "Our FY24 financial result demonstrates the underlying strength and scale of our business, its increasing resilience, and the value creation being delivered through the year on year execution of our Blueprint 2030 strategy," said Cleanaway's CEO and managing director Mark Schubert.
The source: ASX announcement
