New call-to-action


See all



Cleanaway Waste Management Spikes 11% On The Back Of First Half Result

Tim Montague-Jones

Tim Montague-Jones has over 20 year investment management experience working in the financial markets. Previous experience includes a ten year stint at Morningstar as a Senior Equity Analyst/Portfolio Manager, founding the Morningstar Growth Portfolio and a founding member of their Investment Committee. Tim was also a Senior Equity Analyst for Macquarie Group and a member of the winning team to obtain the 2016 LONSEC Fund Manager of the Year award.

Cleanaway Waste Management Limited (ASX: CWY) has released its first half earnings to the market today, for the period ending 31 December, 2019. The business reported underlying net profit after tax of $76.2m (up 13.7%), which is a beat on consensus expectations of $67m. This strong half has also lead to a full-year EBITDA range of $515m – $525m, also ahead of expectations – with an uplift to the margin as well.




During the half, CWY also completed the acquisition of SKM recycling assets and signed an MoU to build a plastic pelletising plant. The Toxfree acquisition is also trekking well and is on track to achieve its $35m synergy targets. The introduction of the Queensland waste levy led to reduced volumes into CWY’s Queensland landfill.

The result does not mention the Chinese National Sword Policy as an ongoing issue anymore. This may mean the footprint 2025 strategy for the business is on track, as Cleanaway moves towards a circular economy and leverages its collection to processing business model.

As is expected with a strong earnings beat on consensus (in this case 13.7%), the share price has rallied by a similar amount. One hour after market open the stock was trading for $2.14 per share, more than an 11% over its price of $1.90 at market close yesterday.



This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

New call-to-action