TOMRA Q2: Strong order intake in Sorting Solutions in a quarter with flat revenues
Revenues in the second quarter 2014 amounted to 1,187 MNOK compared to 1,177 MNOK in second quarter last year. Revenues in TOMRA Collection increased by 4% (down 1% currency adjusted), while revenues in TOMRA Sorting were down 4% (down 8% currency adjusted).
Gross margin was 43% in the quarter, up from 42% in the corresponding period last year, explained by improved margins in TOMRA Sorting.
Operating expenses increased from 323 MNOK in second quarter 2013 to 348 MNOK in second quarter 2014, including one-time integration costs of 13 MNOK in TOMRA Sorting. Adjusted for currency (stronger EUR and USD vs NOK) and one-time costs, operating expenses increased by 2%.
EBITA was 156 MNOK in second quarter 2014 versus 172 MNOK in the second quarter 2013.
Cash flow from operations in second quarter 2014 equaled 136 MNOK, up from 120 MNOK in second quarter 2013.
Collection Solutions: T-9 roll out slightly ahead of schedule and new depot prototype machine out for testing
Revenues in the business area equaled 726 MNOK in the second quarter, up from 699 MNOK in second quarter last year. After adjustment for currency changes, revenues were down 1%.
Compared to same period last year gross margin was unchanged at 42%. Operating expenses were up 2%, currency adjusted. EBITA was MNOK 129, up from 127 MNOK, due to the positive currency impact.
Since the new RVM machine T-9 the new RVM machine was launched in September last year it has received a very good reception in the market place. The ambition is to place 1,000 machines during 2014 and so far 487 machines has left production.
“It is very encouraging to see the good reception the T-9 is getting from the target client group high volume stores and high-end retail”, says Stefan Ranstrand, TOMRA President and CEO.
On top of the new product launch TOMRA is progressing as planned with the development of the new depot machine. The depot machine will serve the very high volume bulk market where TOMRA is not present today. One machine is out for testing in Norway, and several more test machines will be placed in the US market during 2014. The new machine is based on existing modules from the TOMRA portfolio and in-house R&D.
Sorting Solutions: Positive order intake development in all three business segments
Revenues in the quarter decreased by 4% compared to same quarter in 2013. Adjusted for currency effects, revenues were down 8%.
Gross margin increased from 43% in second quarter 2013 to 44% in second quarter 2014, with the negative impact of a stronger EUR vs USD being offset by better product and market mix. Operating expenses increased in the same period from 153 MNOK to 168 MNOK, negatively influenced by integration costs of 13 MNOK in second quarter 2014 (versus 8 MNOK in second quarter 2013). Adjusted for integration cost and currency, operating expenses were up 1%.
EBITA decreased from 51 MNOK in second quarter 2014 to 34 MNOK in second quarter 2014.
As a consequence of higher order intake and somewhat fewer orders taken to P/L currently, the order backlog at the end of second quarter 2014 is at an all-time high at 615 MNOK compared to 574 MNOK at the end of first quarter 2014.
“After a somewhat longer period where we have experienced a more challenging order intake situation, we have now seen three consecutive good quarters with a satisfactory order intake. Specifically for this quarter, we are pleased to see an increase of about 20% in order intake compared to same period last year”, comments Ranstrand.
Asker, 18 July 2014
TOMRA Systems ASA
For questions, please contact:
Deputy CEO/CFO Espen Gundersen: +47 66 79 92 42 / +47 97 68 73 01
Elisabet V. Sandnes, Investor Relations Officer / M&A Director: +47 97 55 79 15
We will open up for Q&A after the presentation and the recorded webcast will be made available on our webpage www.tomra.com after broadcast is concluded.
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 ~170,000 installations in over 80 markets worldwide and had total revenues of ~4.6 billion NOK in 2013. The Group employs ~2,500 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