BEWI – Results for the second quarter of 2023

Solid results in challenging markets with low activity in the building and construction industry

BEWI, a leading provider of packaging, components, and insulation solutions, today reports its results for the second quarter and first half of 2023. Approximately 60 per cent of the company’s business is exposed to the building and construction industry, where the activity has continued to decline across regions, impacting volumes sold from the segments RAW and Insulation & Construction (I&C).

BEWI recorded net sales of 289.6 million euro for the quarter, up by 5 per cent compared to the 277.0 million euro for the same quarter of 2022, with an adjusted EBITDA of 31.5 million euro, compared to 40.3 million euro last year.

“We are proud to be able to deliver such solid results, given a volume-drop of 20 to 50 per cent for units within RAW and I&C,” says Christian Bekken, CEO of BEWI ASA.

The results reflect the weaker construction market, but also positive effects from continuous improvement initiatives. BEWI has succeeded in adjusting capacity and costs to the market conditions. This has, combined with strong price management, and reduced raw material prices, enabled improved EBITDA margins for both downstream segments from the previous quarter.

For the first half of 2023, BEWI had net sales of 586.0 million euro, up from 507.2 million euro for the same per. Adjusted EBITDA came in at 59.7 million euro for the same period, down from 74.7 million last year.

“We are especially pleased to see the profitability improvement in the Nordic insulation business from the measures taken there, providing us with comfort and confidence for improvements in other regions going forward. The EBITDA for the quarter was in line with our expectations, however lower volumes were compensated by stronger margins,” Bekken continues.

Going forward, the activity in the building and construction industry is expected to remain low in the short-to-medium term, impacting volumes. The outlook for the packaging segment is still solid.

As of today, BEWI expects the EBITDA for the second half of the year to be stronger than for the first half due to the solid outlook for P&C and impact from implemented measures as described above, however lower than predicted in previous guiding. This is explained by the drop in construction activity in recent months being sharper than what the company based its guidance on. 

BEWI remains confident in the long-term potential for its solutions, supported by strong underlying fundamentals, such as the need to improve energy efficiency in buildings and transporting and preserving food. The company maintains its key priorities to secure a strong platform for long-term growth, including continuously adjusting capacity and costs to the current market conditions and extracting synergies from integrating acquired companies.

Please find attached the full report for the second quarter and first half of 2023, the presentation of the results and the financials spreadsheet.

CEO Christian Bekken and CFO Marie Danielsson will present the results from 10:00 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.

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 17 August 2023