Interwaste decides not to issue dividend despite upbeat performance
Waste management company Interwaste said on Monday that revenue in the six months to end-June grew 24% to R595m. And this was despite lower disposal volumes and tough trading. Headline earnings per share grew 41% to 6.43%, bolstered by a strong performance by the group’s logistics segment. Revenue growth was driven by price increases and customer diversification, but domestic economic conditions and growing Chinese restrictions on imports weighed on performance, the company said. Operating profit rose 22% to R59.8m, and profit before tax 47% to R47.8m. Financing costs fell 27% to R16.4m, with the company reducing its net debt to equity ratio to 19.2% from the prior period’s 41.3%. The company opted not to pay a dividend, citing a need to allocate capital in a manner that improved shareholder value, such as improvements to the group’s financial position. Interwaste disposes of mine and residential-home waste. It says its outlook remains clouded by, among other things, Chinese restric...
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