Today’s pick is a leader in recycling systems for the food retail industry in Europe and the U.S.
Tomra Systems ASA (TMRAY)
From Global Investing
Old favorite Tomra Systems ASA (TMRAY) reported strong revenue growth, up 12% in Q1 to hit 1.754 billion Norwegian kroner. Removing currency effects, the rise was still double-digit, boosted by a 17% rise in Tomra sorting solutions to NOK 820 million vs only a 5% rise in its reverse vending machine lines, both net of currency factors excluding acquisitions. The two units have roughly comparable sales now that sorting has growth so fast. It also has much lower costs and higher margins. Sales in reverse vending came to NOK 934 million.
Expansion in Australia increased operating expenses so before tax-income was NOK 142 million vs prior year Q1 level of NOK 158 million. Cash flow from operations at NOK 120 million fell NOK 2 million. Earnings rose by 34% from prior Q1 to NOK 41 million.
Good news for TMRAY is Britain plans to create a deposit return system, although my local Whole Foods Market, now owned by Amazon, has stopped deposits and refunds. (I learned about Tomra from Whole Foods. Alas, this was not mentioned at the Q&A) It paid NOK 363 million last month to acquire New Zealand’s BBC Technologies, a fruit sorting systems maker.
TMRAY gains from the world clean-up drive and its early lead in sorting garbage for recycling, now expanded to include pills for pharma firms and basics like potatoes. Ex-dividend for NOK 2.35/share today.
Vivian Lewis, Global Investing, www.global-investing.com, 212-758-9480, April 25, 2018