Tomra shares sink 6% as France abandons mandatory deposit-return plan

Shares of Tomra Systems ASA dropped more than 6% on Monday after the French government scrapped its plan to implement a mandatory nationwide deposit-return scheme (DRS) for beverage containers.

Under the revised policy, French municipalities will no longer be obligated to adopt a standardized deposit-and-return framework.

Instead, they will be free to choose their own methods for meeting the European Union's requirement that 90% of beverage containers be collected for recycling. These alternatives could involve expanded sorting and collection infrastructure rather than deposit-based reverse vending systems.

Monday's decline follows a stretch of strong share-price momentum. In August, Tomra shares climbed nearly 15% after the company posted second-quarter revenue of €405 million, up 25% year-over-year, with its Collection division leading the way: revenue there jumped 45% on new DRS rollouts in Poland, Portugal, Singapore, and Romania.

The company also reaffirmed its full-year guidance amid trade uncertainty and highlighted a contract to supply roughly 1,200 reverse vending machines to a major UK retailer ahead of the country's 2027 deposit-return scheme. Barclays estimates that the UK rollout could eventually represent a market of about 17,000 machines for Tomra.

Tomra's growth outlook has been supported by the steady expansion of mandatory deposit-return systems into new markets.

France's decision to make its scheme optional could disrupt that trajectory, raising worries that other regions weighing DRS mandates might opt for less stringent frameworks, potentially dampening the company's broader growth prospects.