Envipco Continued growth in existing markets

21 Nov 2024 07:00 CET

Q3 2024 Highlights

* Group revenues +9% y/y to EUR 27.4m

* Strong sales delivery in Romania coupled with solid contributions from
Hungary and Greece drive Europe revenues of EUR 18.3m, +9% y/y

* North American revenues of EUR 9.1m with 8% y/y increase in both RVM sales
and program service revenues

* Gross margin 36.6% with gross profit at EUR 10.0m, +14% y/y

* EBITDA EUR 1.7m for a margin of 6.4%, EBITDA of EUR 2.9m for a margin of
10.5% adjusted for non-recurring items of EUR 1.1m

* Closed Sensibin acquisition with EUR 1.5m payment at closing


YTD 2024 Highlights

* Group revenues +56% y/y to EUR 81.5m

* Europe revenues +101% y/y to EUR 55.5m, driven by strong advances in Hungary
and Romania and the addition of revenues from Ireland

* Gross margin 35.7% with gross profit at EUR 29.1m, +61% y/y

* EBITDA EUR 7.3m for a margin of 9.0%, EBITDA of EUR 8.5m for a margin of
10.4% adjusted for non-recurring costs in Q3 24



Amersfoort, The Netherlands, 21 November 2024 -- Envipco Holding N.V.
("Envipco" or "the Company"), a global provider of recycling systems and
reverse vending machines (RVM), continued to grow revenues during the third
quarter, driven by solid contributions from existing markets, particularly in
Europe.

Q3 24 group revenues were up 9% y/y to EUR 27.4 million, driven by strong
advances in the Romanian, Hungarian and Greek operations in Europe and growth
in both RVM sales and program services revenue in North America. Gross profit
increased 14% y/y to EUR 10.0 million, corresponding to a gross margin of
36.6%, up from 34.9% in Q3 23. EBITDA was EUR 1.7 million in the quarter for
an EBITDA margin of 6.4%, and EUR 2.9 million for a margin of 10.5% excluding
non-recurring items of EUR 1.1 million.

CEO Simon Bolton comments:
"The third quarter showed continued growth in our existing markets, with solid
operational execution and improved working capital management. We continue to
make investments to expand existing market positions, enter new greenfield
deposit return scheme (DRS) markets, and develop brownfield market
opportunities. Every day our team exemplifies the agile, hands-on and
flexible approach that is an important factor in our product and service
offering.

We are building for the future to secure market shares in line with our stated
ambitions. Our recent acquisition of Sensibin, which closed this quarter, is
expected to support these targets. Envipco remains committed to our ambitions
for long-term growth, and continue to invest in our organization, in new
markets and in systems to support these growth ambitions. While this impacts
short term profitability, we see these investments as imperative for our
future success.

I am very excited about our growth prospects going forward. Portugal, Poland
and UK are planning DRS rollouts in the next 2-3 years, and these markets
alone could grow the global installed base of RVMs by some 50%. As the EU
packaging and packaging waste regulations (PPWR) is expected to come into
force over the coming quarters, we are likely to experience a wave of new DRSs
across Europe as countries work to meet their obligations. The PPWR could
nearly triple the addressable market for RVMs, and Envipco is ready to act on
this opportunity pipeline."

Outlook:
Envipco remains committed to its ambition of long-term growth and to
capitalize on opportunities arising from legislative initiatives and other
selected opportunities.

Executing on its ambitions, Envipco is expanding its market opportunities
mainly through a greenfield growth strategy, while also exploring brownfield
opportunities in selected markets. Deposit return schemes (DRS) continue to be
introduced in more European markets, with Poland, Portugal and the UK as the
major short- to mid-term opportunities. As the EU Packaging & Packaging waste
Regulation (PPWR) is expected to enter into force in the coming quarters,
further new EU markets are expected to introduce deposit return schemes
towards the end of the decade. The Czech government is progressing with plans
to introduce a DRS for beverage containers. Singapore is scheduled to
introduce deposits on beverage containers and launch a DRS from April 2026.

The timing and character of DRS introductions will influence the procurement
patterns of retailers, and fluctuations must be expected across quarters.
Envipco will continue to invest in market development, technology platform and
the organization while continuing to drive operating leverage.

Envipco is in process of uplisting to the main list on Euronext Oslo Børs. The
application has been submitted, and the company expects to be approved for a
listing on the main list within the upcoming months.

Subsequent events:
On 1 October 2024 Envipco announced the award of a follow-on order with a
major Romanian retail group for the delivery of more than 140 Optima RVMs to
retail stores across the country. This order adds to the order of more than
200 Optima RVMs announced in Q3 24. Delivery of the order is scheduled for Q4
24.

On 12 November 2024 Envipco announced the appointment of Patrick Gierman as
CFO of Envipco with effect from 1 January 2025. Mr. Gierman has broad
experience as CFO of European and US based businesses in General Electrics in
addition to experience as Audit Manager and Senior Audit Associate at PwC and
EY.

For more information, please see the attached third quarter 2024 report and
presentation.

Results presentation:
The company will host a webcast to present the results today 21 November 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

For further information please contact:
Simon Bolton, Group CEO +31 33 285 1773
Mikael Clement, CSO +47 9900 8000
www.envipco.com
envipcoinvestorrelations@envipco.com

About Envipco Holding N.V.
Envipco Holding N.V. (Envipco), www.envipco.com, is a Netherlands-based
holding company listed on Euronext Amsterdam and Euronext Oslo Growth
(Symbols: ENVI/ENVIP). Envipco, with operations in several countries around
the globe, is a recognized leader in the development and operation of reverse
vending machines (RVMs), automated technological systems for the recovery of
used beverage containers. Known for its innovative technology and market
leadership, Envipco holds several intellectual property rights for RVM
systems, including but not limited to beverage refund deposit markings,
material type identification, compaction, and accounting.

This information is subject to disclosure under the Norwegian Securities
Trading Act, §5-12. The information was submitted for publication at
2024-11-21 07:00 CET.

More information:
Access the news on Oslo Bors NewsWeb site

632789_Envipco Q3 24 Presentation.pdf
632789_Envipco Q3 24 Report.pdf