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Cleanaway Waste Management Limited (ASX:CWY), a company from the industrial sector and engaged into waste management, operating a national network of unique collection, processing, treatment and landfill assets, has announced its 1H FY2019 results.
During the period, the companyâs revenue, earnings and cash flow remained strong. As a result, the interim dividend increased by 50%. There was an increase in the statutory gross revenue by 46.4% to $1,149.7 million as compared to the previous corresponding period. The statutory net revenue increased by 47.4% as compared to pcp.Â
The statutory EBITDA increased by 43.2% (underlying EBITDA by 44%) to $228.9 million on pcp. The statutory net profit after tax increased by 35.1% to $60.8 million and the underlying net profit after tax increased by 52.6% to $67 million. The earnings per share increased by 11.1% to 3 cents per share and underlying EPS by 26.9% to 3.3 cents per share.
The company declared an interim dividend of 1.65 cents per share which increased by 50% as compared to the previous corresponding period. The company generated net cash of approximately $175.6 million from the operating activities which grew by 55.7% as compared to the previous corresponding year. The free cash flow by the end of the period was approximately $112.1 million which increased by 126.5%.
The data in the announcement stated that in 1H FY2019, there was a continuous growth in the sustained earnings. There was also an increase in the cash flows as well as the shareholderâs return.
Through the solid waste services segment, there was a growth in the net revenue by 30.2% as compared to the first half of FY2018. As a result of addition of Toxfree solids collections business in north-west WA and QLD, there was a growth in the revenue and earnings. The company was also engaged in full ramp of recently won contracts and reported an increase in the landfill volumes along the east coast. The commodity pricing remained stable in 1H FY2019. There were fluctuations seen in the commodity prices which got mitigated through the improved contract terms with customers.
Through the Industrial and waste services segment, there was a growth in the revenue by 129% as compared to the first half of FY2018. The EBITDA also increased by 193.7% and EBIT by 425%. The result was majorly driven by Toxfree acquisition. The organic growth achieved remained modest after the completion of the Toxfree Wheatstone project in the previous corresponding period.
Through the liquid waste and health services segment, there was a growth in the revenue by 77.1% as compared to the first half of FY2018. The EBITDA also increased by 93.2% and EBIT by 81.4%. The result under this segment was driven by strong performance of the Toxfree businesses of Technical & Environment Services and Health Services. In the first half, the results of the Hydrocarbons were good and continues to remain on track for further growth.
The results from the hazardous and non-hazardous liquids performance were disappointing, and the company is working to improve its performance and is also confident that they will successfully achieve it.
The balance sheet shows that the net asset of the company has consistently increased from the first half of FY2017 until the first half of FY2019. The closing cash balance was $183.3 million.
Since the last six months, the stock has generated a positive return of 16.40%. By the closure of trading on 14 February 2019 was A$2.200 which was up by 13.11% as compared to previous trading dayâs closing price. The stock is currently trading at A$2.150, down by 2.273% (as at 1:28 PM AEST, 15 February 2019) with a market capitalization of A$4.49 billion and approximately 2.04 billion outstanding shares and a pe ratio of 37.29x.
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