Cleanaway’s strong profit growth on business reform

Cleanaway Waste Management has posted strong profit growth as its waste management services grow and the company reaps the benefits of its Blueprint 2030 restructuring platform.

The company reported underlying EBIT profit of $173.9 million, up 25.7 percent on the previous corresponding period on revenue up 7.9 percent to $1.59 billion for the first half, FY24.

Revenue growth was also boosted by increasing prices.

CEO Mark Schubert said: “(EBIT growth) was driven by growth in NSW/ACT solids, CDS (container deposit scheme), liquids and IWS (Integrated Waste Services) businesses and the recovery in Old Corrugated Cardboard (OCC) prices.

“In addition the turnaround in Queensland solids is exceeding expectations, and our Health Services business has returned to profitability.

“The strength of the first half is carrying into the second and we continue to expect FY24 EBIT will be approximately $350 million.”

Schubert said the company’s commitment to strengthening the foundations of the businessand operational quality was increasingly evident across the group.

Cleanaway reported the expansion of EBIT margin by 160 basis points and a 90 basis point increase in the company’s return on capital.

“The improvement in these measures reflects our efforts to systematically empower, enable and equip our frontline teams to make thousands of great decisions every single day, and in doing so, drive and deliver improvement.”

In the six months Cleanaway implemented a new HS&E framework across all sites to drive cultural change.

A feature of the half year was capital expenditure of $231.6 million, up 16 percent.

Picture: cleanaway.com.au