07 Plan Performance

Consolidated Revenues

Sale of Processed Containers
A portion of the cost of recovering aluminum and plastic containers, the two largest categories, is covered by the value of the commodity collected. Aluminum saw a price decline in late 2023, but by mid-2024 prices had rebounded and, by year-end, surpassed previous-year levels. Plastic experienced a mid-year price boost in 2024 before settling back to 2022 benchmarks by the end of the year.

Unredeemed Deposits
Encorp is paid a deposit for every registered container sold in British Columbia. Unredeemed deposits for those containers not returned by consumers are used to fund the system.

Container Recycling Fees
When the revenue from unredeemed deposits and sales of collected material is insufficient to cover the cost of recovering and recycling a specific container type, a container recycling fee (CRF) is charged on the specific container to make up the shortfall. The CRF is remitted to Encorp upon the distribution and sale of new products in the province. The CRF, which is paid once in the supply chain, is not a tax or a refundable deposit.

Other Fees and Income*
Revenues and income from service provider contracts.

Where the money comes from

Container Recycling Fees	$64.6 million	46.5%
Unredeemed Deposits	$38.0 million	27.3%
Sale of Processed Containers	$23.9 million	17.2%
Other Fees and Income*	$12.6 million	9.1%
Total Revenues	$139.1 million	100%

Note: Calculations may show slight variances due to rounding.
*Other Fees includes professional services for Electronic Products Recycling Association (EPRA) and Major Appliance Recycling Roundtable (MARR), interest income and foreign exchange gain/loss.

Consolidated Expenditures

Deposit Refunds
Paid to depots and grocery retailers to reimburse them for the deposits they have refunded to consumers.

Collection Expenditures
Encorp’s single-largest expense is the cost of collection, which includes handling fees paid to contracted Return-It depots that service customers, collect the material and prepare the material for collection by Encorp’s transportation partners.

Transportation and Consolidation
Encorp contracts with various trucking companies to collect containers from depots and grocery retailers and deliver them to contracted consolidation partners, where they are sorted and compacted for shipment to end markets. For these services, Encorp pays them transportation fees, fuel and sorting fees.

Administration
Management of contracts, collection of revenues and payment of expenses.

Consumer Education and Awareness
Programs that encourage consumers to return containers for recycling.

Where the money is spent

Collection Cost	$67.4 million	54.6%
Transportation and Consolidation	$39.3 million	31.8%
Administration Expenses	$9.2 million	7.4%
Consumer Awareness	$6.8 million	5.5%
Other Expenses*	$0.8 million	0.7%
Total Expenditures	$123.5 million	100%

*Other Expenses include amortization.
Note: Calculations may show slight variances due to rounding.