BRITISH COLUMBIA – GFL Environmental Inc., which has operations from Victoria to the Comox Valley on Vancouver Island, posted a solid second quarter of 223, as revenue increased by 13.8% to $1,943.6 million, compared to the same period in 2022.
Solid waste revenue rose to $1,556.3 million, which included organic growth of 4.8% driven predominantly by core pricing increases. Environmental Services revenue went up $387.3 million, including organic growth of 10.2% driven by the strength of industrial collection and processing activity at their facilities and by core pricing and surcharge increases.
“Our exceptional start to the year continued into the second quarter, thanks to the hard work and commitment of our over 20,000 employees,” says Patrick Dovigi, Founder and Chief Executive Officer. “Our strong execution once again resulted in our achievement of double-digit revenue growth in the quarter. This top line growth and margin expansion, both of which exceeded our expectations, demonstrate the strength in our best-in-class asset base and the ability of our exceptional team to execute on our proven value creation strategies.”
Dovigi added that during the second quarter, GFL successfully completed the portfolio rationalization initiative they had committed to earlier this year.
“We realized $1.65 billion of gross proceeds from these non-core divestitures, $150 million more than our original expectation, and completed the process one quarter ahead of plan,” he notes. “We remain focused on executing on our strategy to create long-term shareholder value. We have completed 16 acquisitions year-to-date, the majority of which were smaller tuck-in acquisitions, which have continued to densify our existing footprint.”
GFL intends to allocate a portion of the proceeds to a number of incremental sustainability related capital projects, primarily related to opportunities arising from extended producer responsibility.
“Our strong performance for the first half of the year, coupled with our expectation for the balance of the year, the resilience of our business model and the effectiveness of our growth strategies, are leading us to increase our already industry leading full year guidance for this year,” Dovigi adds.
Year to date, company revenue increased by 20.4% to $3,742.7 million for the six months ended June 30, 2023, compared to the six months ended June 30, 2022.
Solid Waste revenue was $3,038.5 million, including organic growth of 8.3% driven predominantly by core pricing increases. Environmental Services revenue of $704.2 million, including organic growth of 16.5% driven by the strength of industrial collection and processing activity at their facilities and by core pricing and surcharge increases.
Business Examiner Staff
