Year-end report for BEWiSynbra Group for the period January to December 2019


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Year-end report for BEWiSynbra Group for the period January to December 2019


Numbers in parentheses refers to the corresponding periods in the previous year

Fourth quarter

  • BEWiSynbra Group reported net sales of SEK 1,108.8 million for the fourth quarter (SEK 1,219.5 million), a decrease of 9.0 per cent compared to the corresponding quarter last year
  • Adjusted EBITDA was SEK 101.6 million (SEK 100.6 million), while adjusted EBITA amounted to SEK 44.1 million (SEK 62.5 million)
  • Earnings were negatively impacted by items affecting comparability of SEK 9.6 million for the quarter (negatively impacted by SEK 19.5 million)
  • EBIT for the Group was SEK 13.2 million (SEK 18.7 million)
  • In October, BEWiSynbra launched the world’s first EPS made from 100 per cent recycled material
  • In October, BEWiSynbra and HIRSCH jointly announced the acquisitions of six EPS insulation production sites in France and 49.9 per cent of the French company Issosol SAS, with a 34 per cent ownership to BEWiSynbra
  • In November, BEWiSynbra secured its refinancing, by issuing a EUR 65 million bond. The new bond started trading on Nasdaq Stockholm on 16 January 2020
  • In December, BEWiSynbra announced that it has established a new recycling company in Portugal
  • In December, the Board of Directors of BEWiSynbra appointed Jonas Siljeskär as CEO, with effect from 1 January 2020

Full year

  • Net sales amounted to SEK 4,552.4 million in 2019 (SEK 3,905.3 million), an increase of 16.6 per cent since 2018
  • Adjusted EBITDA was SEK 548.8 million (SEK 316.7 million), while adjusted EBITA amounted to SEK 332.5 million (SEK 211.7 million)
  • Earnings were negatively impacted by items affecting comparability of SEK 41.2 million (negatively impacted by SEK 23.8 million)
  • EBIT for the Group was SEK 215.4 million (SEK 141.4 million)

Jonas Siljeskär, CEO of BEWiSynbra Group:

The fourth quarter has been another intensive quarter with activities and achievements in line with our strategic priorities; growth, innovation and circular economy. BEWiSynbra’s dedicated efforts to make our industry more sustainable makes me proud. Following our launch of the world’s first EPS made of 100 per cent recycled material, we have seen massive interest from both customers and other stakeholders, all searching for more sustainable products and solutions. In addition, with our recent expansion of our Circular business through the newly established recycling company in Portugal, we expect to get one step closer to our ambitious recycling target of 60,000 tonnes per year.

As an acknowledgement of our ambitious work within recycling I am very pleased that we were one of the finalists in the Swedish Recycling Awards 2020 and that our Danish Insulation operation is nominated for the Danish Building Climate Prize 2020.

During the fourth quarter we announced that we were strengthening our leading position in Europe, when we in partnership with HIRSCH acquired six EPS insulation production facilities in France and 49.9 per cent of the French company Issosol. We look forward to continuing to build on our successful cooperation with HIRSCH.

In the beginning of 2020, we announced our acquisition of an insulation facility in Norrköping, Sweden. Following the turnaround of our Swedish operations, we are now ready to invest in further growth in the Nordics to strengthen our position in the insulation market. The Norrköping facility will be a strategically important centre for BEWiSynbra’s Nordic insulation business. We get access to higher volumes of extruded polystyrene (XPS), enabling a more competitive offering of EPS and XPS to our customers. The facility’s location enables efficient supply to our Nordic construction customers.

As communicated earlier, the market supply of EPS raw material increased in 2019. This affected revenues and profitability in our upstream segment RAW negatively, while it positively impacted the margins in our downstream segments. This proves that our integrated business model, from the production of raw material to converted end-products, diversifies our exposure and makes us well positioned to meet various market conditions.

During the fourth quarter, several of our segments and regions are contributing positively to our margin development, such as the Swedish and Danish operations, as well as the growth in volumes in Finland and Portugal. On the other side, volumes of fish boxes supplied in Norway are still affected by lower slaughter volumes in facilities we supply to. In the Netherlands there is an ongoing debate on how to reduce nitrogen emissions, where the construction industry is one of the impacted industries. BEWiSynbra experience somewhat lower volumes in Netherlands this quarter, however it is difficult to know if this is a consequence of the nitrogen debate. We are closely monitoring the situation.

Finally, we are excited to see that our continuous efforts to innovate new and more sustainable materials and products, as well as our recycling activities are progressing well. We have said that we will Lead the Change in the EPS industry – and with our recent launch of the world’s first EPS raw material made from 100 per cent recycled EPS, we are closing the EPS life-cycle loop. This means that we can reduce the usage of virgin fossil raw materials and reduce the waste from our industry – and at the same time contribute to protecting goods and people through the superior qualities of our products.

Please see the full interim report for the period January – December 2019 attached.

For further information, please contact:

Charlotte Knudsen, BEWiSynbra Group AB, tel: +479756 1959

Marie Danielsson, CFO, BEWiSynbra Group AB, tel: +46 70 661 0047

About BEWiSynbra Group AB

BEWiSynbra Group is one of the largest vertically integrated producers of expandable polystyrene (EPS) in Europe, focusing on sustainable solutions for packaging and technical components, as well as insulation. Sustainability and innovation are key drivers for the Group’s competitive advantage, and BEWiSynbra has an ambitious approach to its recycling initiatives.

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 08:00 CET on 27 February 2019.