Cleanaway Waste Management (ASX: CWY) on track to deliver EBIT AUD 350M in FY24

4 min read | April 24, 2024 01:59 PM AEST | By Team Kalkine Media

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Cleanaway Waste Management (ASX: CWY) on track to deliver EBIT AUD 350M in FY24 — Image source: © Vchalup | Megapixl.com

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Highlights

Cleanaway Waste Management is a waste management services and resource recovery firm

Revenue of CWY in 1HFY24 grew by 7.9% to AUD 1,587.1 million

UniSuper Limited has maximum stake in CWY with a shareholding of ~8.99%

Cleanaway Waste Management Limited (ASX:CWY) is an ASX-listed waste management firm which operates a national network of unique collection, treatment, processing and landfill assets. The three operating segments of the company are Solid Waste Services, Industrial & Waste Services, and Liquid Waste & Health Services.

In the first half of the financial year 2024 (1HFY24), the company witnessed a nearly 7.9% YoY increase in revenue to AUD 1,587.1 million, backed by increase in prices, new business and continuous organic growth across all three segments. Meanwhile, underlying NPAT increased by 23.6% YoY to AUD 82.7 million, driven by higher contribution from commodities and margin expansion.

During the reported period, underlying EBITDA grew by 10.65% YoY to AUD 356.50 million and underlying EBIT increased by 25.74% YoY to AUD 173.90 million.

Top 10 shareholders of CWY

The top shareholders of CWY have around 43.07% shareholding in the company while the top four have 25.31% shareholding. UniSuper Limited and United Super Pty. Ltd., have the highest stake in the firm with a shareholding of ~8.99% and ~6.06%, respectively.

Recent business update

On 23 February 2024, the company responded to an ASX query and media speculation over the potential takeover offer from Seven Group, a local industrial conglomerate. Through an ASX filing, the company informed that it is not in talk with Seven Group regrading the takeover offer and also has not received any takeover offer.

Outlook

In FY24, EBIT is expected to reach around AUD 350 million and depreciation and amortization expenses are predicted to fall in the range of AUD 370-390 million.

The focus is on delivering its five-year transformation plan while ensuring labour retention and improvement in productivity.

To attain operational excellence, the company has undertaken branch-led productivity and efficiency initiatives.

Share performance of CWY

CWY shares closed 9.97% lower at AUD 2.71 apiece on 24 April 2024. In the past 12 months, CWY’s share price has increased by 7.46%, while in the one month, it has declined by 0.56%.

The 52-week high of CWY is AUD 3.01, recorded on 23 April 2024 and the 52-week low is AUD 2.22, recorded on 30 October 2023.

CWY Daily Technical Chart, Source: EODHD/Others

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 24 April 2024. The reference data in this report has been partly sourced from EODHD/Others.

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This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.

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