Investing.com -- Tomra (OL:TOM) reported strong fourth-quarter results on Friday, with year-over-year growth across its key business segments.
The Norwegian recycling and sensor-based solutions company posted revenue of 398 million euros for the quarter, a 12% increase from 354 million euros in the same period last year.
Recycling was the standout performer, with revenue jumping by 37% to 103 million euros, reflecting strong demand and a high rate of backlog conversion.
The Collection segment, which includes deposit return systems, recorded a modest 2% revenue increase to 203 million euros.
Tomra’s Food division, which has faced a challenging market environment, grew 13% year-over-year to 91 million euros, signaling a recovery.
Gross margin for the company improved to 46%, up from 44% a year ago. Recycling achieved a record-high gross margin of 56% (compared to 53% in Q4 2023), driven by higher sales volumes.
Food’s gross margin rose to 45% from 42%, supported by cost-cutting measures, while Collection remained stable at 41%.
Tomra’s EBITA, adjusted for special items, increased 46% to 78 million euros, up from 53 million euros last year.
The Recycling division led profitability with an EBITA margin of 39% (compared to 25% a year ago), while Food improved to 13% from 7%. Collection saw a slight decline, with its margin slipping to 17% from 18%.
The company’s order intake in Recycling rose 15% to 76 million euros, leading to a 9% increase in order backlog to 107 million euros.
In contrast, the Food segment saw a 10% decline in order intake to 85 million euros, but its backlog still grew by 6% to 108 million euros.
Earnings per share, adjusted for special items, increased 54% to 0.18 euros, compared to 0.11 euros a year earlier.
The Board of Directors proposed a dividend of 2.15 Norwegian kroner per share, a 10% increase from the previous year.
“The EU’s adoption of the Packaging (NYSE:PKG) and Packing Waste Regulation (PPWR) will shape circularity for decades, introducing the first-ever legally binding recycled content requirements for packaging, DRS in all EU countries, and many additional promising obligations for the industry to boost recycling rates,” said Tomra’s chief executive, Tove Andersen in a statement.
“With DRS regulation now in place in several countries including Spain and the UK, the coming years look very encouraging for increased circularity,” Andersen added.