Netherlands' Envipco Q4 revenue falls on lower European RVM sales

Reuters03-11
Netherlands' Envipco Q4 revenue falls on lower European RVM sales

Overview

  • Netherlands recycling systems provider's Q4 revenue fell 27% yr/yr on lower European RVM sales

  • Q4 gross margin dropped to 25.1%, reflecting inventory provisions and underutilized assembly operations

  • Company saw first revenues from Poland and strong bulk-feed sales in Netherlands and Sweden

Outlook

  • Envipco expects to build momentum in Poland and Portugal as DRS launches progress

  • Company expects robust activity in Romania, steady commercial activity in Hungary, strong sales in Netherlands

  • Envipco says European revenue will mainly be new RVM sales, with service revenues to grow as installed base expands

Result Drivers

  • SLOWER DEPLOYMENTS - Co said slower deployments in several existing European markets led to lower RVM sales and weaker Q4 revenue

  • INVENTORY PROVISIONS & UNDERUTILIZATION - Gross margin was reduced by inventory provisions on end-of-life products and continued underutilization in assembly operations

  • POLAND & BULK-FEED SALES - Initial revenues from Poland and strong bulk-feed machine sales in the Netherlands and Sweden partly offset declines

Company press release: ID:nMFN3y2pgc

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

EUR 23.80 mln

Q4 Gross Margin

25.10%

Q4 Adjusted Gross Margin

32.30%

Q4 EBITDA

EUR 700,000

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the environmental services & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Envipco Holding NV is €6.50, about 41.3% above its March 10 closing price of €4.60

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment