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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