Revenues in the second quarter 2013 were 1,177 MNOK, compared to 948 MNOK in second quarter 2012. Organic and currency adjusted, Collection Solutions report a 3% increase while Sorting Solutions revenues were down 4%.
Gross margin was 42 % in the quarter, down from 47 % in the corresponding period last year. This is a continued effect of the BEST acquisition, as well as a result of the current change in market and product mix. A consequence of the former is that we have a higher exposure in the Food segment, which is operating with somewhat lower margins.
EBITA was 172 MNOK in second quarter 2013, versus 180 MNOK in the second quarter 2012.
Cashflow from operations was 120 MNOK, compared to 109 MNOK in second quarter 2012.
Order backlog in TOMRA Sorting was 501 MNOK, down from 560 MNOK in first quarter.
Collection Solutions: Top line growth but less favourable product mix
Revenues were 699 MNOK in second quarter 2013, up from 672 MNOK in second quarter 2012. Currency adjusted revenues show an increase by 3%. Gross margin was 42%, down from 44% last year. This is a result of the current change in product mix and market mix. EBITA decreased from 135 MNOK in second quarter 2012 to 127 MNOK.
Driven by higher activity in Germany, revenues in Europe were up 3%. In North America, revenues increased by 4%, with volume growth in Material Recovery as the main driver.
“We have put behind us a quarter with higher sales activity in key markets”, says Stefan Ranstrand, TOMRA President and CEO. “Consequently, more product sales results in decreasing margins. While margins of second quarter 2012 were all time high, we are now seeing normal fluctuations. As usual the second half of the year is expected to be stronger for both revenues and profit”, Ranstrand comments.
Sorting Solutions: Maintaining market positions in all segments while activities in Recycling remain low
Adjusted for currencies and the BEST acquisition, revenues decreased 4% from second quarter 2012. EBITA of 51 MNOK is in line with same period last year. Gross margin decreased from 54% in second quarter 2012 to 43% in second quarter 2013 due to the higher Food exposure. Order backlog was down from 560 MNOK in 1q 2013 to MNOK 501 in 2q 2013.
In business stream Food the mixed momentum from first quarter continues, with significant variations between geographies as well as product lines.
As in the previous quarter, the activity level in business stream Recycling was still suffering in a challenging macroeconomic environment.
“Although activity in recycling is still low, the shortfall in orders has been somewhat compensated by growth in Food”, says Stefan Ranstrand. “Under challenging conditions, we have kept good cost control within the business, and managed to maintain our market positions”, Ranstrand concludes.
Asker, 18 July 2013
TOMRA Systems ASA
For questions, please contact:
Deputy CEO/CFO Espen Gundersen +47 66 79 92 42 / +47 97 68 73 01
Investor Relations Officer Elisabet Sandnes +47 66 79 92 42 / +47 97 55 79 15
Webcast link: http://dl.webcast.no/tomra/q2_2013.html
Webcast is also available through on our webpage www.tomra.com. We will open up for Q&A after the presentation