Envipco - Continued revenue growth and margin expansion

 
Q4 2024 Highlights:
- Group revenues +3% y/y to EUR 36.4m.
- Europe revenues of EUR 27.3m, -2% y/y. Romania sales breaking new records. 
- North American revenues of EUR 9.1m, +22% y/y. 
- Gross margin 38.4% with gross profit at EUR 14.0m, +14% y/y
- EBITDA EUR 5.4m for a margin of 14.9%. 
- Uplisted to Euronext Oslo Børs December 2024

2024 Highlights:
- Group revenues +35% y/y to EUR 117.8m
- Europe revenues +49% y/y to EUR 82.8m. North America revenues +9% y/y to EUR 35.0m
- Gross margin 36.6% with gross profit at EUR 43.1m, +42% y/y
- EBITDA EUR 12.8m for a margin of 10.8%.
- Closed the acquisition of Sensibin Ltd

Amersfoort, The Netherlands - 20 March 2025: Envipco, a global provider of recycling systems and reverse vending machines, continued to grow revenues with expanding margins during the fourth quarter 2024.
 
Group revenues came in at EUR 36.4m in the quarter, up 3% y/y. On a product line basis Program services were up 37% y/y to EUR 10.4m on increase in European Program service revenues and continued positive momentum in North America. RVM sales were down 7% y/y, compared to a very strong Q4 2023. FY 2024 group revenues were EUR 117.8m, up 35% y/y from group revenues of EUR 87.6m in 2023. On a product line basis RVM sales increased 42% y/y to EUR 81.4m for the full year. Program service revenues increased 21% to EUR 36.5m. 
 
Gross margin was 38.4% in Q4 24 on operational improvements, efficiency gains and volume effects in the supply chain. Gross profit was EUR 14.0m, up 14% y/y. Gross margin increased from 34.5% in Q4 23. Gross margin ended at 36.6% in 2024, up from 34.5% in 2023. Gross profit increased 42% y/y to EUR 43.1m in 2024 from EUR 30.3m in 2023. Envipco continues to develop its supply chain and drive operational excellence in its production.
 
Envipco generated EBITDA of EUR 5.4m in Q4 24, flat y/y. Q4 23 EBITDA included other income of EUR 0.5m from the resale of inventory from Scotland and Q4 24 EBITDA includes other income of EUR 0.1m. EBITDA margin was 14.9% in Q4 24 compared to an EBITDA margin of 15.3% in Q4 23. EBITDA for full year 2024 was EUR 12.8m. This compares to EBITDA of EUR 8.3m in 2023, representing a growth of 54% y/y. EBITDA margin was 10.8% in 2024 compared to 9.5% in 2023. Adjusted for non-recurring costs, EBITDA was EUR 14.4m in 2024 for an adjusted EBITDA margin of 12.2%. 
 
 
CEO Simon Bolton comments:
“2024 was another successful and exciting year for Envipco. We continued to execute on our European growth strategy delivering 35% revenue growth and 11% EBITDA margin from solid performance in existing markets, strong execution and market share gains in new greenfield markets while acting on selected brownfield opportunities.
 
We successfully closed the acquisition of Sensibin adding new technologies to support our offering and market share targets. We continue to invest in a robust, resilient and agile organization, business development, a leading products and service line and systems to support our growth ambitions. Another important milestone was the uplisting to Euronext Oslo Børs in December 2024.
 
Going forward Envipco is facing exciting market opportunities. In Q4 24 the EU Council formally adopted the EU Packaging and Packaging Waste regulation (PPWR), mandating ambitious recovery rates of 90% through deposit return schemes (DRS) in all EU countries by 2029. Several countries are preparing or planning DRS rollout. We are strategically, financially and operationally strongly positioned to capitalize on rising opportunities facing us in existing and new markets and enter 2025 with confidence and enthusiasm.”
 
Outlook:
Envipco remains committed to its ambition of long-term growth and will continue to drive forward strongly aligned with its mission: making recycling easier for everyone. The company is addressing expanding market opportunities in Europe and North America through a greenfield growth strategy and is extending its reach into exiting DRS markets through a brownfield growth strategy.
 
Following the formal adoption of the EU Packaging and Packaging Waste regulations (PPWR), DRS is being mandated in all EU countries by 2029, with expected introductions in Poland, Portugal, the Czech Republic and the UK the coming 1-3 years. Planned DRS go-live in Poland and Portugal in Q4 25 and 2026 are expected to drive incremental activity levels from H2 25.
 
Envipco set out on an ambitious expansion strategy in 2021, targeting +30% market share in new greenfield markets, improving gross margins to 40% and eyeing revenue growth of 4-6x on the anticipated DRS rollout. The company is delivering on the market share target, is approaching its gross margin target, and new market rollouts will drive further growth. Envipco remains committed to its ambition of long-term growth and will refresh its financial targets and ambitions in 2025.
 
 
Subsequent events:
- On 14 January 2025 two members of the Bouri family, Kathleen E. Bouri and Vanda Bouri sold 7.9m shares, representing 13.8% of outstanding shares in Envipco in a secondary placement. Following the placement remaining Bouri family members Mark A. Bouri, Maurice Bouri and Charles A. Bouri combined hold 8.9m shares in Envipco, equivalent to 15.5% of the outstanding shares. Remaining shareholding members of the Bouri family entered into a 365-day lockup for their shares in Envipco.
 
- On 6 February 2025 Envipco announced the award of a second follow-on order with a major Romanian retail group for the delivery additional 400 Optima RVMs to retail stores across the country. This order adds to the order of more than 200 Optima RVMs announced in Q3 24 and follow-on order of 140 Optima RVMs announced in Q4 24. Delivery of the order is scheduled for H1 25. 
 
 
For more information, please see the attached Q4 2024 report and presentation.
 
Results presentation:
The company will host a webcast to present the results today 20 March at 8:00 a.m. CET.
Following the presentation, it will be opened to questions from the audience. The presentation and the following Q&A session will be in English.
 
To join the webcast, use the following link: www.envipco.com/investors