BEWiSynbra Group interim report for the period January to June 2020
HIGHLIGHTS for the second quarter of 2020
Numbers in parentheses refers to the corresponding periods in the previous year
- BEWiSynbra Group reported net sales of 1,120 million for the second quarter
(SEK 1,222 million), a decrease of 8.3 per cent compared to the corresponding quarter last year - Adjusted EBITDA was SEK 168 million (SEK 171 million), while adjusted EBITA amounted to SEK 111 million (SEK 116 million)
- EBIT for the Group was SEK 127 million (SEK 95 million)
- Net profit was SEK 91 million (SEK 43 million)
- Stable result with adj. EBITDA in line with last year
- Limited financial effects of Covid-19
- Continue to pursue M&A activity with focus on circular and growth
Jonas Siljeskär, CEO of BEWiSynbra Group:
After a stable first quarter, the second quarter was dominated by the Covid-19 outbreak in our markets. In BEWiSynbra Group, we took immediate action for the safety of our personnel, to ensure production at our operating sites and continued support to our customers. The pandemic has certainly affected us, but we are satisfied to be able to deliver a result for Q2 in line with last year.
The quarter was, in addition to the Covid-19 outbreak, also impacted by very low raw material prices. This impacted our raw material production result negatively while our downstream activities experienced favourable raw material cost and solid margins. The fact that the pandemic hit certain regions and countries harder can be seen in our results. While deliveries to the automotive industry were severely impacted our business in other segments were more or less unaffected. Our already ongoing digitalization was prioritized, and the ongoing restructuring of IT infrastructure was accelerated. Due to our immediate actions, the majority of our operating units were able to operate close to normal even if we had to implement temporary lay-offs and reduce the number of shifts during April and May.
During the quarter we have continued to deliver in line with our strategic priorities regarding circular economy and growth. In June we entered the UK market by acquiring a minority position in Jablite, an insulation and packaging company. We also acquired the assets of a Danish recycling company and established BEWiSynbra Circular Denmark. To ensure the continued growth and development of this segment Henrik Ekvall has been appointed Managing Director of our Circular business. We are also pleased with the development in our newly acquired XPS facility in Norrköping which during the quarter contributed positively to our result.
After a challenging period, we did observe a gradual recovery during the latter part of the quarter. We do hope that the worst impact of the pandemic is behind us, but we remain prepared for different scenarios. Our business model has proven to be resilient, and in combination with our dedicated and hardworking employees at all levels, we believe we are well-positioned for the future.
Please see the full interim report for the period January – June 2020 attached.
For further information, please contact:
Hanna Laurentz, Dir. Communication & IR, BEWiSynbra Group AB tel: +46 701 774400
Marie Danielsson, CFO, BEWiSynbra Group AB, tel: +46 70 661 0047
About BEWiSynbra Group AB
BEWiSynbra Group is a leading international provider of packaging, components and insulation solutions, and the largest integrated Expandable Polystyrene (EPS) producer in Europe. The commitment to sustainability is integrated throughout the value chain, from the production of raw materials and end goods to the recycling of used products. Since the start in the Norwegian archipelago at Frøya in 1980, the company create value for customers by offering sustainable solutions in innovative and efficient ways. With a vision to protect people and goods for a better every day, BEWiSynbra is leading the change towards a circular economy.
The information is such that BEWiSynbra Group AB (publ) 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 09.00 CET on 17 August 2020.
