BEWI – Results for the third quarter of 2022

BEWI, a leading provider of packaging, components, and insulation solutions, today reported its results for the third quarter of 2022. The company recorded net sales of 267.5 million euro for the third quarter of 2022, up by 39 per cent compared to the 193.0 million euro for the same quarter last year. 15 per cent of the growth was organic, mainly explained by higher sales prices. Adjusted EBITDA came in at 34.4 million, up from EUR 34.2 million recorded for the Third quarter of 2021.

“We are very pleased to deliver another quarter with growth and solid results, considering the increasingly challenging market conditions. Through the recent acquisitions, we expand geographically and further strengthen our positions in strategically important markets and segments,” says Christian Bekken, CEO of BEWI ASA.

For the first nine months of 2022, BEWI had revenues of 774.7 million euro, compared to 540.0 million for the same period last year, representing 44 per cent growth, of which 23 per cent was organic.

All segments, except Circular, contribute to the organic growth, mainly due to strong price management. Styrene raw material prices continued to increase into the third quarter and dropped towards the end of the quarter. The gross margin for segment RAW remained solid, but expectations of decreasing raw material prices in combination with increased uncertainty related to the current macro climate impacted the segment’s volumes negatively.

During the third quarter, BEWI closed its acquisition of the Lithuanian insulation company BalPol, and on 19 October, the company closed its acquisition of Jackon transaction.

“We are glad to finally be able to complete the Jackon transaction, welcoming more than 900 new employees to our company. Now, we can focus fully on the integration, including extracting the significant synergies we have identified. We believe this will enable us to maintain a strong EBITDA level going forward, although we expect to see softer volumes to selected industries given the current market conditions,” Bekken continues.

BEWI’s key markets include food packaging, insulation, HVAC (heating, ventilation, air-condition), and the automotive industry. Although the company sees signs of slowdown, there are variations across the end markets. Food packaging is expected to remain stable and the demand for HVAC solutions is strong. The building and construction industry is forecasted to decline next year, impacting some of the company’s portfolio short term. However, the company expect a stable long-term demand for its insulation solutions, supported by strong underlying fundamentals, including the need to improve energy efficiency in buildings and related regulations. Further, growth in automotive demand is improving slightly as supply chain issues seem to be easing.

“We believe BEWI is financially and operationally robust, and well positioned in the current challenging markets. Uncertainty has increased for the short- to medium term outlook, and we have therefore initiated preventive measures for improved cost control, combined with planned activities for cost reduction following integration of Jackon,” Bekken concludes.

Please find attached the full report for the third quarter of 2022, the presentation of the results and the financials spreadsheet.

CEO Christian Bekken and CFO Marie Danielsson will present the results from 08:30 through a live webcast. The link to the webcast is available from BEWI’s homepage www.bewi.com. 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 CET on 9 November 2022