TOMRA revealed plans to accelerate the path to a sustainable future and double its revenues in five years at its capital markets day on 23 June in Mülheim-Kärlich, Germany.
The company’s strategy is built on accelerating growth in its three core divisions, and using the current business platform to develop adjacent business opportunities.
With a turnover of NOK 10.9bn (€1.05bn) and employing 4,600 people, TOMRA is a world leader in reverse vending machines (RVMs) and sensor-based sorting solutions for the food and recycling industries. The Asker, Norway, headquartered company is celebrating its 50th anniversary this year.
TOMRA is uniquely positioned along global megatrends, with leading market positions, best-in-class technologies, and purpose-driven employees. The strategy builds on organic growth in core business, with a focus on positioning for new deposit markets, leveraging technology to increase recycling, expanding and optimizing the food sorting business across categories and geographies, as well as continued investment in innovation and securing supply chain resilience.
To develop attractive adjacent business opportunities, TOMRA will focus on opportunities that are ripe for scaling, where the company has a competitive advantage to succeed, and where it sees strong return potential. Among adjacent opportunities, TOMRA gave examples such as textile recycling, collection systems for reusable packaging, digital business models, and closing the gap in plastics recycling.
With this strategy, TOMRA launched a new set of financial ambitions for the coming five-year period. This includes 15% annual revenue growth, EBITA margin at 18%, 40-60% dividend payout, and maintaining an investment grade status. The company has also been rated A- / Stable.
TOMRA president and CEO, Tove Andersen, said: “Over the course of 50 years, we have established a unique position which creates the foundation for our ambitious target to double our business in the next five years by accelerating growth in core and developing adjacent businesses.”
In addition, the company said it ‘will focus on implementing its sustainability strategy to lead the resource revolution, while becoming a fully circular business and being safe, fair and inclusive’. The sustainability strategy comprises five focus areas which are resource productivity, sustainable product design, supply chain sustainability, climate impact and TOMRA’s employee value proposition. TOMRA launched its holistic sustainability targets towards 2030 covering these prioritized focus areas. Among these targets is the commitment to net zero emissions and setting science-based targets.
Commenting on the sustainability strategy, Tove Andersen, said: “Transformation is at the heart of everything we do, so we have taken that principle and used it to create our sustainability strategy and focus areas. Each focus area will have a transformational impact and deliver significant, measurable benefits for our people, customers and the environment.
“For a more sustainable future, we at TOMRA feel we have an obligation to grow. We have now stepped up our ambitions and we aim to double our business in the next five years.”