OSLO: Envipco, a global leader in recycling systems and reverse vending machines, announced its Q4 23 results on Thursday, March 7, 2024, showing a remarkable growth in revenues and profits, mainly due to its successful expansion in Europe.
The company reported a 165% year-on-year increase in group revenues to EUR 35.4 million, with Europe accounting for EUR 28 million, up 506% from the same period last year. The key drivers of this growth were Greece, Hungary and Romania, where Envipco has secured contracts to supply its innovative and eco-friendly RVMs.
Envipco also improved its profitability, tripling its gross profit to EUR 12.6 million and achieving a gross margin of 35.5%, up from 31.6% in Q4 22. The company attributed this to higher volumes and manufacturing efficiencies. The company’s EBITDA reached a record level of EUR 5.9 million, with a margin of 16.6%, and its net income was EUR 4.1 million, compared to a net loss of EUR 0.4 million in Q4 22.
The company ended the quarter with a strong cash position of EUR 9.9 million and a reduced net debt of EUR 6.8 million, thanks to its efficient working capital management.
Simon Bolton, the CEO of Envipco, expressed his satisfaction with the results and reaffirmed the company’s commitment to its long-term goals. He said: “We set out on an exciting journey in 2021 setting clear and ambitious financial and operational targets for the company through 2025. Halfway there, I am pleased to share our successes to date, reaffirming that we are on track to deliver on our goals.”
He also highlighted the potential of new markets for Envipco, as several countries are introducing or considering deposit return schemes (DRS) to encourage recycling and reduce plastic waste. He said: “There are several new DRS initiatives in various countries which will open new market opportunities for Envipco in the near and medium term, and we are very optimistic about our prospects as we enter 2024. We are showing improving gross profitability and anticipate further gains, which together with operating leverage builds a solid foundation for earnings growth ahead”.
Envipco has previously announced targets on market share and gross margin of 30% and 40% respectively and revenue growth of 4-6x 2021-levels by 2025. The company remains confident that it can achieve these targets, based on its current performance and pipeline of opportunities.
The company will hold a webcast to present its Q4 23 results and outlook on Friday, March 8, 2024, at 10:00 CET.
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