Improved earnings for downstream in a market showing signs of recovery
BEWI, a leading provider of packaging, components, and insulation solutions, today reports its results for the third quarter of 2024. The company recorded net sales of 252 million euro for the quarter, compared to 267 million euro for the same quarter of 2023. The adjusted EBITDA came in at 23 million euro, compared to 24 million euro for the third quarter of 2023.
"We are pleased to see continued signs of recovery in the markets we operate. Interest rates have come down, and are expected to drop further, which is positive for the building and construction industry. Volumes sold of foundation systems have increased the past two quarters, compared to the corresponding periods last year, indicating increased activity at the beginning of the construction value chain," says Christian Bekken CEO of BEWI ASA.
BEWI's downstream business, including the two segments Insulation & Construction and Packaging & Components improved its results for the quarter compared to last year. For the upstream business, markets remained challenging, with weaker results for RAW and Circular. As a result of this, the group has initiated a cost reduction programme with estimated annual savings of 6 million euro.
For the first nine months of 2024, BEWI had net sales of 773 million euro, compared to 853 million euro for the corresponding period of 2023, with an adjusted EBITDA of 71 million, down from 84 million the previous year.
BEWI has stated a strong ambition for growth, and works with operational, strategical, and financial measures to position itself going forward. As part of this, the company recently announced that it will merge the trading part of its packaging business with the Danish company STOK Emballage. BEWI will retain an ownership of approximately 15 per cent in the combined company and will receive 20 million euro in cash upon completion. The transaction allows a strengthened focus on the core packaging business, and a re-allocation of capital and resources toward high-potential growth areas.
BEWI remains confident in its strategy and the long-term potential for its solutions. The company is well positioned to capture attractive and profitable growth opportunities going forward.
Please find attached the full report for the third quarter of 2024, the presentation of the results and the financials spreadsheet.
CEO Christian Bekken and CFO Marie Danielsson will present the results from 10:00 am today 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. It is possible to post questions through the webcast.
For further information, please contact:
Charlotte Knudsen, Chief Communications and IR Officer 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 6 November 2024
