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Cleanaway Waste Management Ltd
Cleanaway Waste Management Ltd., an Australian titan in the waste management sector, has engineered a comprehensive network of services that underpin the everyday operations of businesses and municipalities. Tracing its origins back to humble beginnings, Cleanaway has evolved to become a formidable force, seamlessly integrating waste management solutions with environmental sustainability. Their operations span across the collection, recycling, and disposal of general waste, organics, and recyclables, employing cutting-edge technology to ensure an efficient lifecycle of waste. With a firm commitment to sustainability, the company doesn't just haul waste—it transforms it into valuable resources and energy, maximizing recovery and minimizing landfill dependency.
The financial engine driving Cleanaway's remarkable growth lies in its diverse revenue streams. Residential, commercial, and industrial clients depend on Cleanaway’s extensive waste solutions, generating robust income. The company captures value through waste collection services, fees from recycling and processing facilities, and by converting waste into energy—a burgeoning area capturing growing interest in the renewable sector. By strategically expanding its geographical footprint and technological capabilities, Cleanaway leverages economies of scale, which positions it favorably to tackle the rising demand for sustainable waste management across Australia. Through its multifaceted approach, Cleanaway not only addresses environmental imperatives but also fortifies its position as a leader in the waste management industry.
Cleanaway Waste Management Ltd., an Australian titan in the waste management sector, has engineered a comprehensive network of services that underpin the everyday operations of businesses and municipalities. Tracing its origins back to humble beginnings, Cleanaway has evolved to become a formidable force, seamlessly integrating waste management solutions with environmental sustainability. Their operations span across the collection, recycling, and disposal of general waste, organics, and recyclables, employing cutting-edge technology to ensure an efficient lifecycle of waste. With a firm commitment to sustainability, the company doesn't just haul waste—it transforms it into valuable resources and energy, maximizing recovery and minimizing landfill dependency.
The financial engine driving Cleanaway's remarkable growth lies in its diverse revenue streams. Residential, commercial, and industrial clients depend on Cleanaway’s extensive waste solutions, generating robust income. The company captures value through waste collection services, fees from recycling and processing facilities, and by converting waste into energy—a burgeoning area capturing growing interest in the renewable sector. By strategically expanding its geographical footprint and technological capabilities, Cleanaway leverages economies of scale, which positions it favorably to tackle the rising demand for sustainable waste management across Australia. Through its multifaceted approach, Cleanaway not only addresses environmental imperatives but also fortifies its position as a leader in the waste management industry.
Strong EBIT Margin: Cleanaway delivered a 160 basis point increase in EBIT margin, driven by productivity and efficiency improvements.
Revenue Growth: Net revenue rose 7.9% to almost $1.6 billion, with higher revenue across all segments.
EBIT and EPS Jump: Underlying EBIT grew 25.7% to $173.9 million, and underlying EPS rose 23.3%.
Guidance Reaffirmed: Management reaffirmed full-year EBIT guidance of approximately $350 million and remains confident in achieving midterm targets.
Turnarounds on Track: Queensland Solids and Health Services businesses improved ahead of or in line with expectations.
Cash Flow & CapEx: Net operating cash flow increased to $229.6 million; CapEx for FY24 is expected to be $430–450 million.
Operational Excellence: Rollout of data analytics tools and process improvements are contributing broadly to efficiency and margin gains across the business.
Dividends: Interim unfranked dividend of $0.0245 per share declared, with franking to resume in FY25.