Cleanaway reaffirms guidance despite flat first-half profit

The news: Waste management company Cleanaway has reaffirmed its full-year earnings guidance and lifted its dividend after posting a steady half-year profit.

The numbers: Statutory profit for the six months to December was down 0.1% to $74.2 million, reflecting a loss on the disposal of its investment in Cleanaway ResourceCo RRF. Underlying earnings, excluding the one-off items, were up 12.2% to $195.2 million, with revenue up 3.7% to $1.94 billion. The company will pay an interim dividend of 2.8 cents a share, up from 2.45 cents a share.

The context: Chief executive Mark Schubert said the result was driven by volume growth, pricing discipline and tight cost control. It expanded margins on the back of higher prices, increased volumes in some segments and operational efficiency gains. He said the company is on track to deliver at the midpoint of its underlying $395 million to $425 million earnings guidance, with a step-up expected in second-half earnings.