Earnings Release • Aug 13, 2025
Earnings Release
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ENVIPCO Q2 25 slower than expected, momentum building H2 25
Q2 2025 Highlights:
* Group revenues EUR 23.1m, down 13% y/y on lower RVM sales sale in Europe
* North American revenues down 7% y/y on lower Program services
* Gross margin up by 100bp y/y to 36.6%, reflecting increased operational
efficiencies offset by lower assembly plant utilization
* EBITDA EUR 0.4m reflecting continued operational investments
* Initial wins secured in Poland and Portugal building momentum into H2 25
Amersfoort, The Netherlands - 13 August 2025: Envipco, a global provider of
recycling systems and reverse vending machines saw a sequential improvement in
Q2 25 activity, secured new wins in new DRS markets while preparing and
investing for incremental activity in new markets.
Group revenues were EUR 23.1m in the quarter, down 13% y/y. On a product line
basis Program services were up 6% y/y to EUR 9.2m, as European services
continued to build. RVM sales decreased 23% y/y primarily due to lower RVM
sales in Europe.
Gross margin increased to 36.6% in Q2 25 compared to 35.6% in Q2 24,
reflecting increased operational efficiencies, offset by lower assembly plant
utilization. Gross profit was EUR 8.4m in Q2 25.
Envipco generated EBITDA of EUR 0.4m in Q2 25 with operating costs at EUR
10.4m. This compares to EBITDA of EUR 2.6m in Q2 24 with operating costs at
EUR 8.8m. EBITDA margin was 1.6% in Q2 25 vs an EBITDA margin of 9.6% in Q2
24. Q2 25 operating profit was EUR -1.9m, compared to Q2 24 operating profit
of EUR 0.6m.
CEO Simon Bolton comments:
"Q2 25 was softer than anticipated on market timing issues. Q2 25 revenues
were EUR 23.1m, down 13% y/y with stable North American operations and Romania
continuing to deliver strong performance. Our Greece activities remain muted
although activity picked up from a weak start of the year. We continue to
build presence in the Netherlands with our Quantum bulk feed technology. This
past quarter we added another 22 team members exiting the quarter with 505
employees. We are actively investing in R&D on both existing and new products,
bolstering our market development activities, and building a strong, resilient
backbone adding key resources in our finance and operations teams.
Envipco secured two milestone wins with major retail groups in both Portugal
and Poland in Q2 25. In Poland we will install RVMs in approximately 1,000
supermarkets for one of the country's largest retail groups. In Portugal we
signed a framework agreement with a leading international retailer for
delivery of approximately 250 RVMs. These wins kick off the rollout of RVMs in
the two countries, improving our visibility and production capacity
utilization and are important building blocks for growth into the second half
of the year.
These are exciting times for Envipco. We are facing a multi-billion Euro
market opportunity never seen before in the history of this industry. An
established global installed base of approximately 100,000 RVMs could triple
in the next few years. Successful launch of deposit return schemes in Romania,
Hungary and Ireland late 2023 and early 2024 drove major growth for Envipco as
we secured strong market positions. 2025 is a year of transition: continuing
to deliver and expand our footprint in existing markets, positioning and
starting to deliver into new greenfield DRS markets Poland and Portugal while
investing for future opportunities"
Outlook:
Envipco continues to expand and build market position in existing markets and
expects building momentum and growth through the year, with Q4 anticipated to
be the strongest quarter of the year. The company's activities in the North
American market is expected to show moderate growth until new legislation is
passed or new market opportunities arise. Romania sales performance continues
to be strong, and order backlog gives support to H2 25. Hungary activity has
stabilized at a lower level as the DRS operator works through improving
operating efficiency of the DRS system, prolonging the anticipated rollout
cycle of new RVMs. Greece is expected to build momentum in H2 25, specifically
in the final quarter of the year. The outlook for the Dutch market is
promising based on the Statiegeld Nederland frame agreement.
Poland and Portugal are preparing for DRS go live. There continues to be
questions and discussions around the scope and launch of the DRS in Poland.
The Portugese DRS operator SDR Portugal has yet to announce an official
startup date. Current expectations are for a soft startup of the Polish DRS
from October 2025, and a soft startup of the Portugal DRS on the back end of
Q1 26. Envipco has secured and announced key wins in both markets, and is
prepared to deliver on the agreements when the customers are ready. Most
retailers in both markets have yet to make decisions on their RVM
procurements.
Envipco will conduct a webcasted capital markets update 9 September 2025 in
Oslo with a broader strategic review.
Subsequent events:
On 5 August 2025 Envipco announced closing of a new consolidated working
capital financing facility with ABN AMRO Bank N.V. to better support the
Company's global operations. The facility provides flexible capacity up to EUR
21m. As part of the arrangement all existing US based financing has been
repaid. Net of repayments, the Company's working capital capacity is increased
by EUR 10m.
On 7 August 2025 Envipco announced a frame agreement for out of home locations
with the Dutch deposit management operator Statiegeld Nederland. Envipco will
focus on deploying Quantum bulk feed collection systems under the agreement.
The agreement runs to end 2026 with option for extension and includes 8 year
service contracts on all deliveries
Results presentation:
The company will host a webcast to present the results today 13 August 2025 at
8:00 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
[email protected] (mailto:[email protected])
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 Børs (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
2025-08-13 07:00 CEST.
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