Interim report for BEWiSynbra Group for the period January to September 201930-10-2019
Interim report for BEWiSynbra Group for the period January to September 2019
HIGHLIGHTS for 2019
Numbers in parentheses refers to the corresponding periods in the previous year
- BEWiSynbra Group reported net sales of SEK 1,145.8 million for the third quarter (SEK 1,160.2 million), a decrease of 1.2 per cent compared to the corresponding quarter last year
- Adjusted EBITDA was SEK 137.2 million (SEK 98.3 million), while adjusted EBITA amounted to SEK 84.3 million (SEK 65.3 million)
- Earnings were negatively impacted by items affecting comparability of SEK 5.6 million for the quarter (negatively impacted by SEK 20.1 million)
- EBIT for the Group was SEK 60.7 million (SEK 33.2 million)
- In July, BEWiSynbra acquired 51 per cent of the Danish recycling company Eurec
First nine months
- Net sales amounted to SEK 3,443.6 million for the first nine months of 2019 (SEK 2,685.8 million), an increase of 28.2 per cent compared to the corresponding period last year
- Adjusted EBITDA was SEK 447.2 million (SEK 216.1 million), while adjusted EBITA amounted to SEK 286.1 million (SEK 149.2 million)
- Earnings have been negatively impacted by items affecting comparability of SEK 31.6 million (negatively impacted by SEK 4.2 million)
- EBIT for the Group was SEK 202.2 million (SEK 122.7 million)
- In March, BEWiSynbra acquired 51 per cent of the Belgian recycling company EcoFill and in July, 51 per cent of the Danish recycling company Eurec
- On 24 October, BEWiSynbra announced the launch of the world’s first 100% recycled EPS
Rik Dobbelaere, CEO of BEWiSynbra Group:
BEWiSynbra Group delivers a stable performance. Revenues are affected by lower market prices in all our segments. The trend this quarter remains the same as for the first half year with decreasing volumes in the Nordics, besides in Finland, stable volumes in the Netherlands and positive volume development in Portugal. In Sweden we have have been working hard during the year with a turnaround as previously communicated. We are now starting to see the results from those activities in our earnings. In Norway, volumes are affected by lower slaughter volumes in the factories we supply fish boxes to in 2019 compared to last year, which can vary from one year to another due to biological reasons.
In 2019, an increase in the general market supply of the EPS raw material, has put pressure on prices, and thus impacted both revenues and profitability in our RAW segment. On the other hand, lower raw material prices have positively impacted the margins in our downstream segments, Packaging & Components and Insulation. This proves that our integrated business model, from raw material to production of end-products, serves as a stabilizing factor for the Group, making us well positioned to meet various market scenarios.
As previously communicated, we have had operational challenges in one production line of the RAW segment this year. Unfortunately, the challenges are still affecting our profitability in this segment, but we expect to have the issues resolved by early 2020.
We are pleased to see that most of our regions are delivering positive contribution to our margin development both this quarter and for the first nine months of this year. Although this can partly be explained by the favourable raw material prices, there are numerous other factors also contributing; The measures we have implemented to reduce cost and improve efficiency in the Swedish operations are yielding positive results and so is the growth in Finland and Portugal as well as the synergies achieved from the merger with Synbra.
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 – September 2019 attached.
For further information, please contact:
Charlotte Knudsen, Director of IR and Communications, 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 30 October 2019.