BEWI – Results for the first quarter of 2023
Strong performance provides robust results and a doubling of synergy estimate
BEWI, a leading provider of packaging, components, and insulation solutions, today reported its results for the first quarter of 2023. The company recorded net sales of 296.4 million euro for the quarter, up by 29 per cent compared to the 230.2 million euro for the same quarter of 2022, with an adjusted EBITDA of 28.2 million, compared to 34.4 million last year. Further, the company reports a doubling of its estimate for synergies from the Jackon transaction from 15 to 30 million euro.
“We are very pleased with our results for the quarter. Although the EBITDA is lower than for the same quarter last year, the performance this quarter is just as strong, given the current market conditions,” says Christian Bekken, CEO of BEWI ASA.
Styrene raw material prices and market prices for EPS were quite stable in the first quarter of 2023 compared to the previous quarter, however significantly lower than for the first quarter last year.
The activity in the building and construction industry has continued to be low, impacting volumes for segment RAW and Insulation & Construction.
“Given the tough market conditions and a decrease in volumes of 20 per cent for the Insulation segment, we are very pleased to manage to deliver organic growth in EBITDA of more than 10 per cent, and to see the profitability improvements posted by the old Jackon,” Bekken continues.
The demand for food packaging remains stable. Volumes of fish boxes sold in the quarter were reduced compared to the corresponding quarter last year due to lower slaughter volumes. This has continued into the second quarter but is expected to lead to a strong second half of the year for this part of the business. The Packaging & Components (P&C) segment still delivered organic growth in EBITDA, mainly driven by increased prices and a positive development in demand for automotive and HVAC components.
To integrate acquired entities, especially Jackon, have been a top priority for BEWI the last six months. By the end of the first quarter, BEWI had extracted synergies of more than 10 million euro and is now estimating synergies of 30 million euro by 2024, which is a doubling of the previously communicated estimate.
BEWI experience mixed markets, with variations across regions and end-markets. The activity in the building and construction industry is currently low, impacting volumes for segment RAW and I&C. Customers are cautious, resulting in low visibility and making it hard to predict when the market will rebound. Still, the underlying fundamentals for insulation solutions in Europe remain strong for the medium to long term.
On the other hand, the outlook for food packaging, as well as technical and automotive components looks very promising for 2023. This, combined with the positive contribution from acquired entities, including synergies and measures implemented to improve profitability, provide BEWI with a cautiously optimistic outlook for 2023.
The company expects an adjusted EBITDA for the full year of 2023 in line with the pro-forma EBITDA (including acquired companies) of EUR 167 posted for 2022, representing approximately 25 per cent growth over the EUR 134 million reported for 2022.
BEWI will keep a steady focus on integrating acquired companies and extracting synergies, as well as adjusting capacity and cost levels to the current market conditions. The company remains committed to its strategic priorities and will pursue attractive growth opportunities.
Please find attached the full report for the first quarter of 2023, the presentation of the results and the financials spreadsheet.
CEO Christian Bekken and CFO Marie Danielsson will present the results from 08:30 at the premises of Nordea, in Oslo, Norway. The presentation is open to all. The presentation will also be available through a live webcast. The link to the webcast is available from BEWI’s homepage www.bewi.com, and a recording of the webcast will be made available from BEWI’s website.
For further information, please contact:
Charlotte Knudsen, Director of IR and Communications BEWi ASA, tel: +47 9756 1959
Marie Danielsson, CFO BEWI ASA, tel: +46 70 661 0047
About BEWI ASA
BEWI is an international provider of packaging, components, and insulation solutions. The company's commitment to sustainability is integrated throughout the value chain, from production of raw materials and end goods, to recycling of used products. With a vision to protect people and goods for a better every day, BEWI is leading the change towards a circular economy.
BEWI ASA is listed at the Oslo Børs under ticker BEWI.
The information is such that BEWI ASA is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on 9 May 2023