Continued earnings growth delivers record profit with further margin expansion Interim dividend up 12.5%
Cleanaway Waste Management Limited (“Cleanaway”) ASX:CWY today announced a Statutory Net Profit of $79.4m for the six months ended 31 December 2020 (“1H21”), up 75.3% on the prior corresponding period (“pcp” or “1H20”). Statutory Net Profit was $0.4m higher than Underlying Net Profit with costs related to the Perth MRF fire, acquisitions and integration offset by a benefit to net finance costs from the modification of a debt facility. Net Revenue of $1,070.2m was marginally higher than the pcp with higher revenue in the Solid Waste Services segment being partially offset by lower revenue in the Industrial & Waste Services and Liquid Waste & Health segments. Underlying EBITDA of $263.8m was 2.9% higher than the pcp reflecting higher EBITDA and margin expansion contributions from each of the business segments, with the Group EBITDA margin 60bps higher at 24.6%. Underlying EBIT of $132.2m was 3.9% higher than the pcp reflecting higher Underlying EBITDA and steady depreciation and amortisation expenses. EBIT margin was a record at 12.4% representing 50bps expansion on the pcp. Underling NPAT of $79.0m was 6.5% higher than the pcp. Underlying earnings per share (“EPS”) attributable to ordinary equity holders of 3.8 cents per share (“cps”) was 2.7% higher than the pcp. The Board declared an interim dividend of 2.25 cps fully franked, 12.5% higher than the pcp.