BINGO records 196 per cent net profit increase

BINGO Industries has recorded a 196 per cent statutory net profit increase to $66 million in the 12 months up to 30 June 2020.

Underlying revenue also jumped 21 per cent to $486.7 million, with underlying earnings before interest, taxes, depreciation and amortisation up 41 per cent to $152.1 million.

In its FY20 Investor Presentation, BINGO highlighted the full 12 month contribution of Dial a Dump Industries, including cost synergies from operational efficiencies relating to the NSW network reconfiguration, internalisation and overhead savings.

“We are now three years into a five-year strategy and have delivered against our stated objectives, weighting our business model towards post-collection infrastructure assets,” BINGO Managing Director and CEO Daniel Tartak said.

“This has enabled us to deliver a solid result in a challenging market.”

Tartak added that BINGO has increased its network capacity to 4.6 million tonnes per annum across key markets in NSW and Victoria.

“Since initial public offering in 2017, we have delivered an additional 3.6 million tonnes of network capacity,” he said.

“Our strong fundamentals make us resilient to normal market cycles, so despite the current economic uncertainty and further softening in our key markets, we are well positioned for future growth through the cycle.”

Despite market volatility, BINGO has entered FY21 with solid momentum, with volumes rebounding from the initial downturn in Q4 FY20.

Post-collections volumes increased above pre-COVID-19 levels in July and August, with July being the largest ever month for the business.

BINGO expects COVID-19 related economic and market headwinds to continue in FY21 and cause a softening in the size of the addressable market.

Infrastructure activity is expected to remain strong, however, which will go some way to offsetting softness in other parts of the building sector.

As Australia moves towards a post-COVID-19 environment, BINGO said it is well placed to benefit from significant market tailwinds.

The company highlighted a continued boom in infrastructure investment and the eventual recovery of the residential and commercial building market, supported by a backlog of projects that may trigger a surge in activity in FY22 and FY23.

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