Tomra shares slide on financial targets delay

Tomra Systems ASA

05/09/2024 09:18

** Shares in Tomra  TOM.OL  drop 6% after the Norwegian
recycling machinery maker delayed its growth and profit goals
    ** The group said on its Capital Markets Day it aims to grow
sales by 15% annually and achieve an EBITA margin of 18% by 2030
compared to 2027 previously 
    ** "It seems like they're just pushing their growth and
profitability targets further out in time, which is of course
negative if you believed in the 2027 targets," says Pareto
analyst Kari Eide Hartvedt
    ** Hartvedt adds that the 15% growth target must imply some
new initiatives, meaning a lot of new CapEx and allocating
capital to new areas in order to fuel growth from other parts
than their core operations
    ** The market might have wanted Tomra to instead prioritise
and show more confidence in growth in its core capabilities,
like collection, the analyst says
    ** Tomra also introduced a new target to achieve >18% ROCE
by 2030 and kept its dividend  policy  of a 40-60% payout ratio 
    ** The stock is at the bottom of the pan-European STOXX 600
 .STOXX  index 


 (Reporting by Agata Rybska)
 ((gdansk.newsroom@thomsonreuters.com;))