BEWI – Results for the third quarter of 202103-11-2021
BEWI – Results for the third quarter of 2021
BEWI, a leading provider of packaging, components, and insulation solutions, today reported its results for the third quarter of 2021.
BEWI recorded net sales of 193.0 million euro for the third quarter of 2021, compared to 122.1 million euro for the same quarter last year, corresponding to an increase of 58 per cent, of which 43 percentage points are organic growth driven by higher volumes and sales prices in all segments, following strong demand.
Adjusted EBITDA came in at 34.2 million euro for the quarter, up from 17.9 million for the third quarter last year. The company’s upstream segment, RAW, had a positive margin development due to the higher GAP recorded (i.e., styrene gross profit), while margins in the downstream segments are lower than last year, due to the higher cost of the raw material. However, margins for the Packaging & Components segment improved from the previous quarter, in particular due to strong volume development from food packaging in Norway.
“We are delivering yet another quarter with record-high results, driven by continued strong demand and good operational performance, making us well position to pursue further growth. With our recent offer to acquire all shares in Jackon Holding, we launched the most transformative transaction in our history. Although completion of the transaction is still subject to closing conditions, we are very optimistic about the opportunities ahead for a combined company,” says Christian Bekken, CEO of BEWI ASA.
For the first nine months of 2021, BEWI recorded net sales of 540.0 million euro, up from 332.3 million euro. The growth is 21 per cent driven by acquisitions and 40 per cent organic growth, following higher volumes and prices in all segments. Adjusted EBITDA came in at 82.5 million euro for the first nine months, compared to 48.5 million for the same period of 2020.
BEWI is experiencing solid demand, despite challenging market conditions in some end-markets. Most most industries are currently impacted by increased uncertainty related to shortage and/ or delay in deliveries of components, as well as cost inflation on several operational costs, such as energy, transport, and raw materials. BEWI expects this to impact margins in the fourth quarter. EPS contract prices have remained high, resulting in expectations of a GAP (difference between prices of EPS raw materials and Styrene) remaining above the historically normal range of EUR 360 to 400 per ton also for the fourth quarter.
In September, BEWI hosted a Capital Markets Update and launched its ambition to roughly double revenues and more than double its EBITDA over the next five years, as well as improving its return on capital employed (ROCE) to approximately 20 per cent. The Jackon transaction, announced after the update, adds to the company’s growth ambitions, and further strengthens the company’s platform to pursue attractive growth opportunities. Completion of the transaction is expected during the first half of 2022, with synergies amounting to at least EUR 12 to 15 million.
The Board considers BEWI to have a solid platform for further profitable growth driven by stable demand, a solid operational performance, combined with a strong pipeline of M&A opportunities and a fully funded business plan.
Please see the full report for the third quarter of 2021 and the presentation of the results attached.
CEO Christian Bekken and CFO Marie Danielsson will present the results from 08:00 at Sparebank 1 Markets auditorium in Olav V’s gate 5 in Oslo, Norway. The presentation will also be available through a live webcast. The link to the webcast is available from BEWI’s homepage www.bewi.com/investors/reports-presentations/. 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 CEST on 3 November 2021