Tomra slides on Q2 net sales miss, soft Recycling guide

** Shares of Tomra Systems TOM slide 5% to nearly bottom of STOXX 600 SXXP after the Norwegian group posted lower-than-expected net sales in Q2

** The recycling and waste sorting solutions specialist posted revenue of 325 million euros ($376.77 million) against the 342 million euro consensus provided by the company

** Jefferies notes that the topline miss of 5% was driven by a 12% drop in Collection, where sales in Europe (ex Northern) fell sharply due to lower volumes in new markets (Austria)

** While the brokerage highlights Tomra's margin resilience, it says the sharp sales decline in Collection and soft outlook for Recycling underscore the importance of execution in new Deposit Return System markets and navigating macro headwinds

** The group said that based on its end-Q2 order backlog, it sees a 40% conversion ratio in Recycling to be recognised as revenue in Q3

($1 = 0.8626 euros)