Cleanaway shares shrink 2.1% on guidance

The news: Shares in waste management company Cleanaway have lost 2.1% after the company projected depreciation and amortisation costs would outstrip earnings.

The numbers: Cleanaway is expecting $350 million in earnings before interest and taxes (EBIT) for the 2024 financial year. Depreciation and amortisation expenses are expected to be between $370 million and $390 million, $10 million less than forecast in the company's FY23 results. Net finance costs for the year are expected to come in at around $110 million, depending on interest rates. Cleanaway shares were trading 2.1% lower at $2.33 at 11:30am AEDT, compared to around 1.2% for the broader market.

The context: Cleanaway posted a 70.9% drop in annual profits for FY23, after heavy rains forced a write-off at one of its landfill sites. Rectification of the site is expected to cost roughly $40 million, while IT and transformation costs also weighed on the result.

What they said: "I am pleased to report a strong start to the new financial year," Cleanaway chief executive and managing director Mark Schubert said in a statement.