BEWI – Results for the second quarter of 202111-08-2021
BEWI – Results for the second quarter of 2021
BEWI, a leading provider of packaging, components, and insulation solutions, today reported its results for the second quarter and first half of 2021.
BEWI recorded net sales of 198.1 million euro for the second quarter of 2021, compared to 105.1 million euro for the same quarter last year, corresponding to an increase of 88 per cent. Of this, 60 per cent is organic growth driven by improved volumes and higher sales prices in all segments, following strong demand.
Adjusted EBITDA came in at 31.6 million euro for the quarter, up from 15.7 million for the second 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 were challenged by the higher cost of the raw material, due to a lag in contractual price indexation towards customers of approximately one quarter.
“We are delivering record-high results for the second quarter, driven by strong demand in our markets, and consequently high sales prices. Our net sales are up by 88 per cent over the same quarter last year and we more than double our adjusted EBITDA,” says Christian Bekken, CEO of BEWI ASA.
For the first half of 2021, BEWI recorded net sales of 347.0 million euro, up from 210.2 million euro. Of the growth of 65 per cent, 39 per cent is organic, following higher volumes and prices in all segments. Adjusted EBITDA came in at 48.3 million euro for the first six months, compared to 30.5 million for the same period of 2020.
BEWI is experiencing strong demand in most of its end-markets, and the positive volume development have remained also into the third quarter. Styrene prices seem to be stabilising, while the demand for EPS-based products remains high.
Market demand is expected to continue to be strong also for the second half of 2021 and according to market analysts, the average EPS contract price for the third quarter is expected to be at the same level in the third quarter as for the second quarter. Further, the analysts also currently forecast a GAP for the third quarter high above the historical range of EUR 360-400 per tonnes, even higher than for the second quarter. This will have full drop-through impact on sold volumes for segment RAW.
As previously communicated, the increase in raw material prices positively impacted margins for segment RAW for the second quarter, while putting pressure on margins for the downstream segments, due to the lag in sales price indexation. Margins in the downstream segments are expected to catch up when raw material prices stabilise or decrease.
The Board considers BEWI to be very well-positioned for further profitable growth. The company experiences strong demand and has a proven business model with solid operational performance. Combined with an attractive pipeline of M&A opportunities and a solid financial position, the company will continue pursuing growth opportunities in line with its strategy.
Please see the full report for the second quarter and first half of 2021 and the presentation of the results attached.
CEO Christian Bekken and CFO Marie Danielsson will present BEWI’s results through a webcast from 09:30 CEST today. Link to the webcast is available from the company’s website, www.bewi.com (go to “Reports and presentation”).
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 11 August 2021