Tomra misses estimates after delayed deposit return scheme roll-out

By Vera Dvorakova and Agnieszka Olenska

Norwegian recycling technology provider Tomra TOM reported lower-than-expected earnings on Friday, citing a delayed deposit return vending machine roll-out in Poland and weakness in its recycling division.

WHY IT MATTERS

Tomra Systems' collection division provides vending machines for deposit and return schemes which are based on collecting and recycling cans and bottles.

Several countries across Europe, Tomra's largest market, have been introducing deposit and return schemes. Poland's scheme launched on October 1 and Portugal's is expected to kick in during 2026.

CONTEXT

Tomra flagged in July that the growth prospects for its collection division depend on developments in upcoming deposit markets in Poland and Portugal.

Poland will be the company's second largest market to date, the press release said.

BY THE NUMBERS

The Oslo-listed company posted adjusted earnings before interest, taxes, and amortization (EBITA) of 30 million euros ($35.14 million) for the quarter, below the 40 million euros expected by analysts in a poll compiled by the company.

Tomra has a strategic ambition to have 5% annual growth in existing markets, CEO Tove Andersen said in a conference call.

Tomra's shares opened 12.6% lower on Friday.

KEY QUOTES

"There needs to be a significant ramp up, which means that there will be a very hectic period starting now. And we think this will really last until mid next year," CEO Tove Andersen told Reuters.

She added that the European market for reverse vending machines will at least double from now until 2029 or 2030, enabling Tomra to meet its growth targets.

($1 = 0.8538 euros)