In This Article:
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bewi ASA (FRA:5T0) reported an increase in net sales, up from 83.6 million, reflecting a positive growth trajectory.
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The company is operating at 60-70% capacity utilization in its insulation production, indicating room for growth without additional investment.
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There is a continuous improvement in order intake, suggesting a positive market outlook.
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Bewi ASA (FRA:5T0) has made strategic investments in the automotive division to meet increasing demand, which could enhance future profitability.
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The company is actively managing costs and has implemented 6 million in cost cuts, with 500,000 taking effect in Q1.
Negative Points
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Bewi ASA (FRA:5T0) is experiencing negative operative cash flows, which could impact financial stability.
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The company faces challenges with negative working capital, which may affect liquidity.
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There are additional startup costs in the automotive division, amounting to 200,000 to 300,000 monthly, impacting overall profitability.
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The leverage ratio is high at 5.5, which includes discontinued operations, indicating potential financial risk.
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The company is cautious about inventory management due to fluctuating raw material prices, which could affect cost control.
Q & A Highlights
Q: How much of Bewi's insulation production is currently being utilized in terms of capacity? A: We are operating at approximately 60 to 70% capacity utilization across our factories. This is based on standard production, though we can increase output with extra shifts on weekends without further investment. (Respondent: Unidentified_4)
Q: Given the recent investments in the automotive division, is it likely that Bewi will retain this business segment? A: We continuously evaluate what is best for our companies. The investments were necessary to meet increasing demand in the automotive sector, and we are still considering our position in this area. (Respondent: Unidentified_4)
Q: How has the start of Q2 compared to the same period last year? A: We are seeing continuous improvements in order intake, and market statistics indicate that the market is picking up. We expect this trend to continue. (Respondent: Unidentified_4)
Q: Can you quantify the startup costs for the automotive segment and their impact on packaging and components? A: The startup costs are approximately 200,000 to 300,000 EUR each month, totaling just under 1 million EUR for the quarter. (Respondent: Unidentified_4)