Full Year 2024 Cleanaway Waste Management Ltd Earnings Call Transcript
Key Points
- Cleanaway Waste Management Ltd (TSPCF) delivered double-digit EBIT growth for FY24, surpassing guidance.
- The company completed its Queensland recovery and transformed its health services business, reducing costs and increasing capacity.
- Operational excellence initiatives are gaining momentum, contributing to a 100 basis point increase in EBIT margin to 11.2%.
- Net operating cash flow increased by 12.5% versus FY23, reflecting growth in EBITDA and lower cash outflows.
- The company declared a fully franked final dividend of $0.0255 per share, contributing to a full-year dividend of $0.05 per share.
- A tragic accident involving a Cleanaway vehicle resulted in a fatality, highlighting ongoing safety challenges.
- Net finance costs increased by $19.6 million due to higher interest rates and marginally higher average net debt.
- Landfill EBIT declined by 2.4% year-on-year due to competitive market conditions and increased costs.
- The industrial and waste services segment saw a decline in EBIT margin by 60 basis points to 6.5%, impacted by deferred or canceled projects.
- The company faces ongoing challenges in the Victorian market, with competitive pricing and higher costs affecting profitability.
Good morning, everyone, and thank you for joining us for Cleanaway's financial results briefing for the FY24 financial year. My name's Mark Schubert, and I'm joined by Paul Binfield our CFO, and Josie Ashton, Head of Investor Relations.
Moving to slide 3, firstly, I would like to begin by acknowledging the traditional owners of the many lands on which we meet today and pay my respects to elders past present and emerging.
The plan this morning is I'll take you through our highlights for the period and the good progress that we've been making. Then Paul will provide you with further details on the group financials, after which I will walk you through the performance of each of our operating segments and the outlook for FY25. I'm going to take the disclaimer as read. And so please turn to slide 5.
On behalf of the entire Cleanaway team, I am pleased to report that FY24 was a year of execution and progress. We delivered another year of double-digit EBIT growth. We
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