TOMRA - Third Quarter results 2003
Please find a short version of the quarterly report below. For more detailed information, please find links to the whole quarterly report and presentation at the end of the summary.
- Revenues 651 MNOK (-9% relative to third quarter 2002)
- Europe 225 MNOK (-3%)
- North America 328 MNOK (-10%)
- South America 98 MNOK (-18%)
On October 1 a national deposit system was implemented in Germany for non-refillable beverage containers. Many retail chains representing over 100.000 points-of-sale, have established independent deposit systems or joined third-party operated systems. Retailers which currently are not participating in established deposit systems have delisted non-refillable packaging from the stores.
In connection with retailers' preparations for the introduction of deposit in Germany, TOMRA has signed two frame agreements for the delivery of reverse vending systems for non-refillable containers valued at approximately 90 MNOK. The first installments under these agreements will be completed during the fourth quarter.
Technology sales in Germany for refillable containers have significantly improved during the third quarter. This is expected to continue in the fourth quarter.
71% revenue increase in Sweden, driven by the Coop Sweden order signed in second quarter
The growth in revenues during the third quarter was driven by installations at Coop Sweden's stores. The majority of the remaining machine placements and upgrades at Coop Sweden's stores will be completed in the fourth quarter.
Signed frame agreement with Royal Ahold in Europe worth up to 250 MNOK
TOMRA has entered into a frame agreement with the Royal Ahold group in Europe worth up to 250 MNOK. The term of the agreement is from October 2003 through January 2006.
Signed contract with US retailer, Shaw's Markets, for delivery of 500 machines
TOMRA entered into an agreement with a a new customer, Shaw's Markets, to deliver approximately 500 machines throughout Connecticut, Massachussetts and Vermont.
Legislative approval in California for increase in deposit
New legislation in California has been approved resulting in an increase in deposit as of 1 January 2004 from 2,5 cent to 4 cents for containers higher than or equal to 24 ounces. TOMRA anticipates that the increase in deposit will have a significant positive effect on revenues and profit in California in 2004.
Consumption of beverages sold in aluminum cans has dropped significantly in Brazil due to the overall depressed macro-economic situation, and is estimated to decrease by over 10 % in 2003. As a consequence, used beverage container collection volumes have also dropped at a similar rate, which has negatively impacted TOMRA's operations in Brazil. Volumes are expected to return to normal in 2004.
New unit in TOMRA - Recycling Solutions
In order to further accelerate execution of new growth opportunities in the non-deposit markets, TOMRA has established a new unit called Recycling Solutions. With the establishment of the new unit, TOMRA will strengthen and better coordinate its activities within business development and technology solutions for non-deposit markets.
For presentation of 3rd quarter 2003 please use the following link:
For full report with tables of 3rd quarter 2003 please use the following link: