BEWI – Results for the fourth quarter of 2022
Delivering solid results in continued challenging markets
BEWI, a leading provider of packaging, components, and insulation solutions, today reported its results for the fourth quarter and full year 2022. The company recorded net sales of 275.7 million euro for the fourth quarter of 2022, up by 32 per cent compared to the 208.2 million euro for the same quarter of 2021, with an adjusted EBITDA of 24.4 million, compared to 26.4 million last year.
“We are very pleased to deliver another quarter with growth and solid results, despite challenging market conditions. The results are negatively impacted by the contribution from Jackon’s Nordic insulation business. We are of course not satisfied with this performance, and we are implementing measures to adjust capacity and reduce costs to meet the current market conditions,” says Christian Bekken, CEO of BEWI ASA.
For the full year 2022, BEWI’s net sales amounted to 1 050.4 million euro, an increase of 40 per cent over 2021, including 17 per cent organic growth following price increases and additional volumes at the new Senja facility. Adjusted EBITDA was 133.6 million for the full year, up 23 per cent from the previous year, of which approximately half of the growth was organic.
Including full effect from companies acquired in 2022, BEWI had annual sales of more than 1 500 million euro, which is a doubling of the reported sales for 2021. Through acquisitions, the company has significantly strengthened its market positions, expanded into the UK, the Baltics and Spain, broadened its product offering, and further developed its recycling platform, all in line with the company’s strategic priorities.
For the fourth quarter, BEWI experienced variations in market demand between segments and regions. The building and construction industry had reduced activity, especially in the Nordics, impacting volumes for segment RAW and Insulation. Food packaging was stable, and the demand from the automotive industry developed positively.
EPS raw material prices decreased approximately 20 per cent from the third to the fourth quarter of 2022, resulting in a margin shift from segment RAW to the downstream segments, in line with the company’s communicated outlook in the third quarter report.
“We are especially pleased to record a significantly improved EBITDA margin for the Insulation segment, excluding Jackon, given the current market conditions,” Bekken continues.
Jackon’s insulation business, of which approximately 65 per cent of the sales are to the Nordic markets, had a negative contribution for the fourth quarter, mainly due to lack of price adjustments to compensate for the higher cost level. To improve the profitability and in response to the current market conditions, BEWI has initiated measures to reduce its production capacity. This includes reduced shifts at several facilities, and planned closure of at least one facility. In addition, the company is initiating measures to reduce the cost base of its Nordic Insulation division, with annual savings of approximately 5 million euro.
“In addition to the annual cost savings of 5 million euro, we remain very comfortable with our communicated range for synergies of more than 15 million euro, and we also remain very comfortable with how Jackon complements us,” Bekken continues.
Going forward, BEWI will continue focusing on integrating acquired companies, extract synergies, and adjust production capacity and cost level to the current market conditions.
The building and construction industry is expected to decline approximately 10 per cent in 2023 compared to 2022. Approximately 60 per cent of BEWI’s business is exposed to this industry. Still, the long-term demand for insulation solutions is supported by strong market fundamentals, including the need to improve energy-efficiency in buildings and related regulations. Food packaging is expected to remain stable, with positive contribution from organic initiatives and M&As, and demand for both technical and automotive components is solid.
The board of directors of BEWI proposes to the general meeting to pay a dividend of NOK 0.60 per share, in line with the company’s dividend policy of 30 to 50 per cent of net profit. The dividends are proposed to be distributed following a sale of the company’s real estate portfolio.
The board of directors remain confident in BEWI’s robust business model, strong organisation, and the outlook for continued profitable and sustainable growth of the company.
Please find attached the full report for the fourth quarter and full year 2022, 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 Carnegie at the 5th floor of Fjordalleen 16 at Aker Brygge 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. It will be possible to post questions through the webcast, 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 CET on 16 February 2023