The following is a summary of the Tomra Systems ASA (TMRAY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Tomra Systems reported flat Q1 2024 total revenue of NOK3.3 billion, with an increase in the Collection sector but declines in the Recycling and Food sectors.
Gross margin stayed consistent at 40%, improved in Collection but impacted negatively by lower volumes in Recycling and Food.
Operating expenses ended at NOK1,157 million and adjusted EBITA was NOK176 million.Cash flow for the quarter was NOK228 million, a decline from NOK509 million in the same quarter last year.
Successful issuance of NOK1 billion new senior unsecured green bonds reported in April.
Business Progress:
The company made significant progress in the Collection and Recycling sectors but experienced setbacks in the Food sector, which they aim to mitigate with cost reduction and restructuring.
The company launched AUTOSORT PULSE and AI-based OBTAIN, and GAINnext for the recycling business.
They are focusing on cost reduction in the Food sector with a target of saving €30 million by year-end.
In an effort to close the gap in plastics recycling, developments are being noted in their TOMRA Feedstock venture.
The maturation of two plants, one each in Germany and Norway, in the next two years, is expected to ramp up revenue.
Change of reported currency to the euro will commence next quarter, and a targeted reduction in COGS by €30 million is expected to raise EBITA to 10%-11%.
Tomra Systems anticipates growth opportunities resulting from new EU packaging and packaging waste regulations effective 2029.
More details: TOMRA SYSTEMS ASA SPON ADR REP 1 NOK2 IR
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