Cleanaway profit down 71% as landfill problems persist

The news: Waste management company Cleanaway has posted a 70.8% drop in statutory net profit for the year, following complications at landfills and medical waste facilities.

The numbers: Cleanaway recorded a $23.5 million profit, down from $80.6 million the year before. Net revenue lifted almost 14% to $2.97 billion, while earnings per share fell 4.3% to 6.6 cents, partially due to dilution from a capital raising. Cleanaway declared a $2.45 dividend, in-line with FY22. CWY shares were down 3.2% at 10:38am AEST, fetching $2.58.

The context: Cleanaway's profits were scuppered by a write-off at the New Chum landfill, which was temporarily closed after major rain events in 2022. Rectification costs at the site are currently estimated at $40 million. An outage at a medical waste facility, along with IT and transformation costs, also weighed on the result.