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BEWi reports a decline in the first quarter of 2024

NORWAY
Friday, May 17, 2024, 07:00 (GMT + 9)

The company says it had solid operations in a seasonally weak quarter.

BEWI, a supplier of packaging, component and insulation solutions, today reports the results for the first quarter of 2024

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BEWI, a leading provider of packaging, components, and insulation solutions, today reports its results for the first quarter of 2024. The company recorded net sales of 244 million euro for the quarter, down from 296 million euro for the same quarter of 2023. The adjusted EBITDA came in at 19 million euro, compared to 28 million euro for the first quarter of 2023.

• Market conditions remained challenging, further impacting sales in a seasonally weak quarter
• Solid operational performance including

              -Continued cost - and capacity adjustments enabling sustained downstream margins, despite lower volumes

              -Ramp-up of new production line in Etten-Leur, strengthening capacity of grey EPS and use of recycled EPS

              -Launch of products with lower CO2 footprint based on recycled feedstock

• Macroeconomic indicators show signs of improvement, and regulatory drivers remain strong

“Although we are not satisfied with the results for the quarter, we are very pleased to see that the market has been picking up into the second quarter, also beyond the normal seasonality,” says Christian Bekken, CEO of BEWI ASA.

“Once again, we are pleased with the development in the I&C segment, where we succeeded in maintaining the margin from the first quarter last year, despite the lower volumes,” Bekken continues.

BEWI’s work to strengthen the balance sheet continues to be a prioritized task. The group has divested properties under sale-leaseback agreements, work to optimize the working capital. At the end of the first quarter, BEWI had 78 million euro in available cash and credit, with an additional 28 million euro incoming from real estate divestments and compensation related to a previous acquisition.

So far in the second quarter, volumes have improved. The macroeconomic indicators are showing signs of improvement, as central banks are re-considering rate cuts amid easing inflation. Further, strong regulatory drivers support BEWI’s circular business model, and the strategic choice made to strengthen the group’s position in energy-efficient solutions for buildings.

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“We are pleased with how we have withstood the recession in the building and construction markets, by adapting costs and capacity. As the market rebounds, we are well-positioned to capitalize on higher demand. With investments already made, volumes can increase without major cost increases, leading to a noticeable strengthening of margins,” Bekken concludes.

Please find attached the full report for the first quarter of 2024, the presentation of the results and the financials spreadsheet.

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