TMRAY - Tomra Systems ASA (TMRAY) Q4 2023 Earnings Call Transcript
2024-02-15 10:21:02 ET
Tomra Systems ASA (TMRAY)
Q4 2023 Earnings Conference Call
February 15, 2024 02:00 AM ET
Company Participants
Daniel Sundahl - Head, Investor Relations
Tove Andersen - Chief Executive Officer
Eva Sagemo - Chief Financial Officer
Conference Call Participants
Gaurav Jain - Barclays
Elliott Jones - Danske
Daniel Haugland - ABG Sundal Collier
Adela Dashian - Jefferies
Presentation
Daniel Sundahl
Good morning from Asker, ladies and gentlemen, and welcome to Tomra's Fourth Quarter Results Presentation for 2023. My name Daniel Sundahl and I'm Head of Investor Relations. And today, our CEO, Tove Andersen will give you the highlights of the quarter and tell you a little bit more about our reuse pilot. And afterwards CFO, Eva Sagemo will dive deeper into the numbers. At the end of the presentation, we will open up for Q&A for participants in the Teams webinar. The link to the webinar can be found in this morning's stock exchange release, as well as in last week's invitation.
But without further ado, I give the word to Tove.
Tove Andersen
Thank you, Daniel, and welcome to all of you from me as well for our Q4 result of 2023. I'm really proud that despite the challenges we have faced during the year, we are presenting today an all-time high revenue for Tomra and record results both for collection and recycling in the quarter.
We have delivered on our -- the growth ambitions for these two divisions. We have recuperated the gross margins as promised and we are delivering a really strong cash flow in the quarter. However, we are not satisfied with the results in food. It is not in line with our expectations and what we believe is the potential for this business. But as communicated last quarter, we have taken actions and the restructuring program is progressing according to plan and we are on track to deliver then a run rate EBITA of 10% to 11% by end of the year.
Let's then dive into the financial highlights. So this quarter, we are delivering a revenue of NOK4.1 billion. That is 10% up for the group, very strong growth both in collection and recycling, 26% and 18%, respectively while we were down then 20% in food. For the year, we have a growth of 11% currency adjusted delivering then a total revenue of NOK14.8 billion.
It's been very pleasing to see the improvements in gross margin during the year and for the quarter it ended up on 44% driven by our focus on price increases during the year. And for the quarter collection and recycling is the main reason for the improvement. While in food the gross margin is down but that is due to the lower volume in the quarter.
Operating expenses for the quarter is NOK1.179 million, up versus NOK979 million the same quarter last year. The increase is mainly driven by business expansion our growth currency and inflation. We are continuing to invest in our business to continue to position ourselves for the growth that will come. That means that we have done an EBITA adjusted for special items of NOK626 million, up from NOK496 million same quarter last year.
The special items in the quarter is linked to the cyberattack and food restructuring. So in total we had a one-off cost of NOK374 million, NOK86 million then on cyber and NOK288 million for the food restructuring. Cash flow in the quarter was very strong as we had a normalization effect after the cyberattack we delivered then NOK1.3 billion in cash flow from operations....
Tomra Systems ASA (TMRAY) Q4 2023 Earnings Call Transcript