Solid top line growth for TOMRA Group
Revenues in third quarter 2013 amounted to 1,231 MNOK, compared to 1,101 MNOK in third quarter 2012, up 10% from same quarter last year. Organic and currency adjusted, Collection Solutions reported an increase of 9%, while revenues in Sorting Solutions were up 12%.
Gross margin was 42% in the quarter, down from 45% in the corresponding period last year. This is primarily explained by the change in portfolio compared to last year for TOMRA Sorting.
Operating expenses increased from 295 MNOK in third quarter 2012 to 306 MNOK in third quarter 2013. The increase is explained by a stronger EUR towards the NOK.
EBITA was 217 MNOK in third quarter 2013 versus 195 MNOK same period 2012. Margin remained unchanged.
Cash flow from operations was 202 MNOK, up from 181 MNOK in third quarter 2012.
Order backlog of 434 MNOK in TOMRA Sorting, down from 501 MNOK at the end of second quarter 2013
Collection Solutions: Solid quarter paired with successful RVM product launch
Driven by strong demand in Central Europe, revenues in the business area increased by 9%, currency adjusted, compared to third quarter last year. Gross margin remained unchanged at 42% compared to last year.
EBITA was MNOK 161, up from 130 MNOK in third quarter 2012, a result of higher revenues leveraging on a relatively fixed operating cost base.
In September, TOMRA announced the launch of T-9, the first of a new generation of reverse vending machines (RVM) based on TOMRA Flow Technology. The T-9 features the first ever 360 degree recognition system applied inside an RVM and enables faster and cleaner collection of beverage containers, including also containers that until now could not be collected in RVMs.
“The T-9 was well received by our customers and the first orders have already been placed”, says Stefan Ranstrand, TOMRA President and CEO. “By replacing complex mechatronics with state of the art solid state electronics, we have found new solutions to old challenges. With our new product family TOMRA is setting the standard for reverse vending for the next decade”, Ranstrand comments.
Sorting Solutions: Delivering a quarter in line with expectation but facing a mixed outlook
As a result of a high level of installations in business stream Food, revenues in the quarter increased by 8% compared to same quarter in 2012. Adjusted for currency effects and divestment of the Freezing and Chilling product group, revenues increased by 12%.
Gross margin decreased from 49% in third quarter 2013 to 44% in third quarter 2013, due to changes in the portfolio mix. Operating expenses increased from 141 MNOK to 145 MNOK due to stronger EUR versus NOK. EBITA decreased from 70 MNOK in third quarter 2012 to 62 MNOK in third quarter 2013, explained by the lower gross margin.
Order intake decreased from 487 third quarter 2012 to 403 MNOK in third quarter 2013. The decrease is partly explained by the 18.5 MUSD order to a French fries processing plant in North America signed in 2012 and partly by a somewhat weak order intake in Food in the quarter. As a consequence, the order backlog is down from 501 MNOK at the end of second quarter 2013 to 434 MNOK.
“Revenues within the Food business stream were higher this quarter compared to same period last year. The activity is however mixed with slower Food order intake in Europe currently”, comments Ranstrand. “Recycling revenues were lower than last year, particularly within metal recycling which has been negatively influenced by lower metal prices. Order intake in the Recycling business stream has however picked up during the last four months”, Ranstrand concludes.
Asker, 17 October 2013
TOMRA SYSTEMS ASA
For questions, please contact:
Deputy CEO/CFO Espen Gundersen +47 66 79 92 42 / +47 97 68 73 01
IR Officer Elisabet Sandnes +47 66 7992 42/ +47 97 55 79 15
The Webcast will also be made 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 ~150,000 installations in over 80 markets worldwide and had total revenues of ~4.1 billion NOK in 2012. The Group employs ~2,200 globally, and is publicly listed on the Oslo Stock Exchange. (OSE: TOM) 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