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Tomra misses estimates after delayed deposit return scheme roll-out

Tomra misses estimates after delayed deposit return scheme roll-out

Tomra, the Norwegian recycling technology company, reported earnings that were lower than expected on Friday. The company cited a delay in the roll-out of deposit return vending machines in Poland as well as weakness in its recycling business.

Why it Matters

Tomra Systems’ collection division offers vending machines that are used for deposit-and-return schemes based on the collection and recycling of cans and bottle.

Tomra’s biggest market in Europe, several countries have introduced deposit-and-return schemes. Poland's scheme was launched on 1 October, and Portugal's will be implemented in 2026.

CONTEXT

Tomra announced in July that its collection division's growth prospects depended on the development of deposit markets in Poland, Portugal and other emerging countries.

The press release stated that Poland would be the second largest market for the company to date.

By the Numbers

The Oslo-listed firm posted adjusted earnings before interests, taxes and amortization (30 million euros) for the third quarter. This was below the 40 millions euros analysts expected in a poll conducted by the company.

Tove Andersen, Tomra's CEO, said that the company has a strategic goal to grow existing markets by 5% annually.

Tomra shares opened Friday 12.6% lower.

KEY QUOTES

"There will be a busy period beginning now, as there needs to be an important ramp-up." We think that this period will last until the middle of next year," said CEO Tove Anderson.

She said that, from now on until 2030 or 2029, the European market for reverse vending machine will at least double. This will allow Tomra's growth goals to be met.

(source: Reuters)