Strong year-on-year revenue growth of 25% in Q1 2022
Regulated Information
Key figures
*Including other income of EUR 3.4 million positive (DPG settlement, PPP forgiveness).
Highlights
? 25% revenue growth to EUR 10.4 million in Q1’22 from Q1’21, including favorable currency impact of 7%
? Strong quarter in North America with year-on-year revenue growth of 34% to EUR 9.4 million, driven by improved program
service volumes, solid RVM sales, and favorable currency impact of 9%
? Strong orderbook with key retailers in North America to be delivered in Q2/Q3’22
? European revenue of EUR 1.0 million, down 24% from Q1’21 due to Sweden customer installation delays. Sweden order
book developing well with expectation to be fully recouped in the remainder of the year
? Malta RVMs built and shipped with revenue to be recognized in Q2 and Q3 of 2022
? Gross margin 32.9% up from 31.5% in Q4’21 from improved labor efficiencies and some cost stabilization of components
and logistics. The company has solid plans on continuous margin improvement going into H2’22
? Romanian manufacturing plant launched in May 2022; global manufacturing capacity up to 30,000 RVMs annually
? Organizational investments and significant increased market development activities in Scotland, Ireland, Romania, and
Portugal tied to DRS developments
in EUR millions Q1 2022 Q1 2021 FY 2021
Revenues 10.4 8.3 38.4
Gross Profit 3.4 3.1 13.4
Gross profit % 32.9% 37.0% 35.0%
Operating Expenses 4.6 3.8 14.7
EBIT (1.1) 2.7* 2.3*
Net profit/(loss) after taxes after minority (1.3) 2.0 0.6

EBITDA (0.2) 3.4 5.5
Earnings/(loss) per share in € (0.03) 0.46 0.01
Shareholders’ equity 29.7 31.1 30.5
Comment of Simon Bolton, CEO Envipco

“Q1 was another strong revenue quarter and continues the growth trajectory of the company. While we are continuing to see the
impact of supply chain challenges and logistical cost increases, we are countering these with pricing strategies and focused margin
improvement projects. This is seen this Quarter with improved Gross Margins vs. Q4 2021. We are confident that we can manage these cost pressures over the medium term with continued focus from the team and ramping up our Romanian facility. We are experiencing significant progress within our targeted markets and wider activity both within the Europe and the US. With a strong
outlook going into Q2, we remain optimistic about solid growth this year and setting a good foundation towards our long-term
targets.” – Simon Bolton, CEO

Outlook
Envipco is continuously expanding and developing in new and existing markets as they mature and DRS schemes approach GoLive. The company is well positioned for growth in the short and longer term. The company has built a strong orderbook for Q2’22, and significant revenue growth is expected. Shipments have already been sent to Malta, additional Quantum units are expected to be installed in Sweden, and new opportunities are materializing in new countries throughout Europe and in North
America.
Gross margin improvement is a key focus area, particularly following the challenging market conditions and inflationary pressures
seen in 2021. In the first quarter of 2022 the company focused on reducing temporary labor and began projects to optimize product cost. Cost of components and logistics are expected to normalize over time. Envipco is continuously managing product cost, improving price levels, and working to ensure a lean and profitable business with improved margins going forward.
The new Romanian facility will improve production capacity with local European presence, reducing manufacturing costs,
simplifying supply chains, and lowering freight costs as the facility is ramped up. We are growing in North America, winning contracts with key national retailers, and positioning the company for expansion. The company is continuously investing in the global organization building the right capabilities to deliver on the exciting opportunities ahead.
We remain confident in our strategy, our investments, and our ability to deliver strong growth and execute on our long-term revenue and gross margin targets. We are excited to be creating a cleaner world for future generations through our recycling
technology.
Please refer to our website www.envipco.com to download a full pdf version of our 2022 First Quarter Report.