Q1 2025 Highlights:
- Group revenues down 23% y/y on lower RVM sales sale in Europe
- North American revenues up 16% y/y, driven by program services and RVM sales
- Gross margin increased 220 bp y/y to 37.3%, reflecting increased operational efficiencies
- Announced significant order in Romania

Amersfoort, The Netherlands - 14 May 2025 - Envipco, a global provider of recycling systems and reverse vending machines (RVM), experienced as expected a slow start to 2025 following a record Q4 24.

Group revenues came in at EUR 21.0m in the quarter, down 23% y/y. On a product line basis Program services were up 11% y/y to EUR 8.6m, an increase in both Europe and North America. RVM sales decreased 37% y/y primarily due to lower Quantum sales in Europe.

Gross margin widened to 37.3% in Q1 25 compared to 35.1% in the year-earlier period, reflecting increased operational efficiencies. Gross profit was EUR 7.8m in Q1 25.

Envipco generated EBITDA of EUR 0.5m in Q1 25. This compares to EBITDA of EUR 2.7m in Q1 24. Q1 24 EBITDA included other income of EUR 0.2m from the resale of inventory from Scotland. EBITDA margin was 2.3% in Q1 25 vs an EBITDA margin of 10.0% in Q1 24. Q1 25 operating profit was EUR -2.0m. This compares to Q1 24 operating profit of EUR 1.1m.

CEO Simon Bolton comments:
"Following a record Q4 24, 2025 started out slow as anticipated due to the timing of introduction of new DRS initiatives. However, the European DRS opportunity pipeline is rapidly developing, and clear legislative progress is crystallizing the vast market opportunity. In Q1 25 Envipco continues to deliver on current markets and improves its market position. We have announced significant new wins and continue to develop our organization, exiting the quarter with 483 employees to deliver on anticipated market opportunities in years to come.

During the quarter we inaugurated our Engineering Center of Excellence in Cluj, Romania, complementing and scaling the company’s business development, sales and operations activities in Romania. The center will serve as a strategic global R&D- and IT hub working jointly with our R&D teams in USA and Germany to support the rapid deployment and scaling of DRS across Europe.

We are facing exciting times. The recent appointment of UK DMO as the operator of the new DRS in the UK is a landmark event towards the 2027 DRS launch in England, Scotland and Northern Ireland. There are ongoing developments in Spain to drive forth a DRS introduction as mandated by law. Poland and Portugal are both getting close to planned DRS launch Q4 25 and Q1 26 and market activity is high. Singapore is also progressing towards planned Q2 26 DRS launch.

Building on our market position we have achieved in recent years we are excited about our opportunities and prospects ahead." 

Outlook:
Envipco continues to expand and build market position in existing markets and expects building momentum and growth through the year. Romania and Hungary are expected to continue to provide commercial opportunities for both 2025 and 2026. Activity in Greece is expected up in Q2 25 following a slow start to the year and build further momentum in H2 25. Envipco’s Quantum bulk feed has proven highly efficient in the Netherlands, and the company is actively pursuing new commercial opportunities in the Dutch market.

DRS go-live in Poland and Portugal in Q4 25 and early 2026 are expected to generate higher activity levels in H2 25.
The majority of European revenue will be new RVM sales as the company generates limited service revenues during DRS startup and warranty periods. The actual timing and character of DRS introduction and go-live will influence retailer procurement patterns and quarterly variations are expected. As the installed base expands European Program service revenues will grow.

Envipco will continue to invest in market development, technology platforms, administrative capacity and the organization while continuing to drive operating leverage. The company has an expansion strategy to deliver +30% market share across new markets. Envipco remains committed to its ambition of long-term profitable growth and will refresh its financial targets and ambitions in 2025. 

Subsequent events:
On 15 April 2025 Envipco announced the award of a third follow-on order with a major Romanian retail group for the delivery additional 400 Optima RVMs to retail stores across the country. This order adds to the initial order of more than 200 Optima RVMs announced in Q3 24 and follow-on orders of 140 and 400 Optima RVMs announced in Q4 25 and Q1 25. Delivery of the order is scheduled through 2025.

On 23 April Envipco announced the inauguration of Envipco Engineering Center of Excellence in Cluj-Napoca, Romania. The engineering center is an extension of the company’s global network of R&D facilities in the US and Germany and a platform for co-creation between engineering teams. It will serve as a strategic R&D and IT hub for the company to support the rapid deployment and scaling of DRS across Europe.

On 29 April 2025 Envipco announced that the 2024 Annual Report will be delayed and expected to be released by 30 May 2025.

For more information, please see the attached Q1 2025 report and presentation.

Results presentation:
The company will host a webcast to present the results today 14 May at 08:00 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