TOMRA: Operational excellence in Collection Solutions, Sorting Solutions continues to grow organically and through acquisitions
Revenues in the fourth quarter 2012 was all time high 1,188 MNOK, compared to 935 MNOK in fourth quarter last year. Adjusted for acquisitions and currencies, revenues were up 10% for TOMRA Group, up 3% in TOMRA Collection, and up 32% in TOMRA Sorting. Gross margin was 46% in the quarter, up from 45 % in the corresponding period last year.
Operating expenses increased from 236 MNOK in fourth quarter 2011 to 287 MNOK in fourth quarter 2012. The increase is explained by the ongoing geographic expansion in TOMRA Sorting, as well as acquisition transaction costs and subsequent integration of BEST.
EBITA was all time high 231 MNOK in fourth quarter 2012, versus 167 MNOK in the fourth quarter 2011. This is up 31% adjusted for currencies and acquisitions. EBITA margin increased by 1.5% compared to same period last year.
Revenues in 2012 amounted to 4,073 MNOK compared to 3,690 MNOK last year.
Gross margin was 45.9% in 2012, a slight improvement from 44.5% in 2011. EBITA was to 739 MNOK, up from 669 MNOK last year. Cash Flow from operations amounted to 550 MNOK, slightly down compared to 566 MNOK in 2011. The transformation from many brands to ONE TOMRA is well underway and will continue in 2013, already providing synergies on the marketing side.
Collection Solutions: Operational excellence in the supply chain and continued stable financial performance
Revenues equaled 699 MNOK in fourth quarter 2012, down from 702 MNOK in fourth quarter 2011. Adjusted for currency effects, revenues were up 3%. Supported by the ongoing cost reduction program, gross margin increased to 44% from 42% in the same quarter last year. The strong improvement is also reflected in the increase in EBITA margins for the quarter of 21%, up from 19% in the same quarter 2011.
Performance is stable in the Nordics and North America. All major European markets reports somewhat higher activity in fourth quarter 2012 vs. fourth quarter 2011. Revenues in North America were down from 233 MNOK in fourth quarter 2011 compared to 221 MNOK in fourth quarter 2012.
For the full year, increased activities within Material Handling offset slower activities within RVM. Revenues are in line with the previous year, which is a strong performance in light of the large one time Dutch order in 2011. Gross margin was 43%, up from 41% in 2011.
“With the ongoing cost reduction program well on track, Collection Solutions has proven operational excellence, from production and sales to service. Although no new markets are expected to generate significant revenues in the coming quarters, activity is assumed to be stable, profitable and in line with previous quarters”, says Stefan Ranstrand, TOMRA President and CEO.
Sorting Solutions: Acquisition of BEST Sorting establishes position as global leader in Food sorting segment
Adjusted for the BEST acquisition and currencies, revenues increased with 32% from fourth quarter 2011. EBITA was up from 40 MNOK in 4q 2011 to 90 MNOK in the same quarter 2012. Gross margin decreased from 55% in fourth quarter 2011 to 48% in fourth quarter 2012. This is mainly due to the sales operating model of BEST cooperating with agents. Order backlog of 525 MNOK compared to NOK 283 MNOK at the end 2011 and shows a continued healthy development.
In the recycling segment we are experiencing a slowdown in order intake predominantly related to metal recycling. Price fluctuations within relevant commodities gives an indication of our clients’ long term take on price levels and hence their willingness to invest in TOMRA machinery. Waste recycling currently seems more market resilient.
Adjusted for the BEST acquisition and currencies, revenues were up 13% for the full year. The acquisition of BEST was closed on 1 July, 2012, and the full integration of the company into TOMRA Sorting Solutions is continuing, with new Food organization now in place. The first results of the merger between Odenberg and BEST were manifested in a large sorting order of 18.5 MUSD from a US agribusiness company in August. Agricultural seasonality in the Northern hemisphere will affect sales in Food in the coming quarter, but on a yearly basis the Food segment is expected to be a key growth area in the time to come.
“TOMRA is well positioned to capture the changing demands as a result of today’s megatrends. The worlds population will increase by 30% over the next 40 years. With our expansion into food, we are positioned to take part in solving one of the largest challenges of tomorrow: Getting food and water for all these people. Through acquisitions, we have established a strong presence in North America and Western Europe. Going forward, the main focus for geographical expansion will be on capturing growth in the rest of the world, the markets where the main population growth is expected”, comments Stefan Ranstrand.
For questions, please contact:
Deputy CEO/CFO Espen Gundersen +47 66 79 92 42 / +47 97 68 73 01
Asker, 15 February 2013
TOMRA Systems ASA
Webcast is also available through on our webpage www.tomra.com
We will open up for Q&A after the presentation
TOMRA was founded on an innovation in 1972 that began with design, manufacturing and sale of reverse vending machines (RVMs) for automated collection of used beverage containers. Today TOMRA has installations in over 80 markets worldwide and had total revenues of ~4.1 billion NOK in 2012. TOMRA has around 2,200 employees and is publicly listed on the Oslo Stock Exchange. The TOMRA Group continues to innovate and provide cutting-edge solutions for optimal resource productivity within two main business areas: Collection Solutions (reverse vending, material recovery and compaction) and Sorting Solutions (recycling, mining and food sorting).For further information about TOMRA, please see www.tomra.com