In This Article:
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Net Sales: EUR191 million for Q4, up 3% from last year.
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EBIT: EUR19 million excluding raw and trading, up 10% from the same quarter last year.
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EBIT Margin: 9.7%, up by 0.5 percentage points.
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Full Year EBIT Margin: Decreased slightly from 9.5% to 9.3%.
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Operating Cash Flow: EUR33 million for the quarter, driven by positive working capital development.
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Inventory Reduction: EUR13 million reduction in inventory, approximately 10% decrease.
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CapEx: Target not to exceed EUR20 million for the year, with significant reduction compared to previous years.
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Leverage: Slight increase in Q4, with net interest-bearing debt reduced by EUR67 million during the year.
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Cash Position: EUR73 million at year-end, with an additional EUR30 million in available facilities.
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Recycled Material Collection: 35,000 tonnes collected in 2024, a 30% increase from the previous year.
Release Date: February 13, 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 (OSL:BEWI) achieved organic growth in both top line and EBIT for the first time in nine quarters.
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The company reported a 3% increase in net sales for the fourth quarter, reaching EUR191 million.
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Bewi ASA (OSL:BEWI) has increased its collection of used EPS by nearly 30% in 2024, reaching 35,000 tonnes.
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The merger with Unipol positions Bewi ASA (OSL:BEWI) as the most cost-efficient producer in Europe with a strong recycled offering.
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The company has strengthened its financial position by reducing net interest-bearing debt by EUR67 million in 2024.
Negative Points
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Bewi ASA (OSL:BEWI) did not reach its ambitious target of collecting 45,000 tonnes of used EPS in 2024.
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The EBIT margin for the fourth quarter was 9.7%, which, although an improvement, still falls short of the company's financial target of 15%.
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The insulation and construction segments experienced a loss, with more than 50% of this loss coming from joint ventures in Germany and France.
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The company's raw material division reported lower volumes in the fourth quarter due to regional market differences and cautious customer inventory buildup.
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Despite improvements, the leverage remains above target, with a slight increase in the fourth quarter.
Q & A Highlights
Q: Can you elaborate on the strategic transactions mentioned in the earnings call? A: Christian Bekken, CEO, explained that Bewi ASA announced the merger of BEWI RAW with the Dutch raw material company, Unipol. This transaction, along with a packaging transaction announced in October, positions the company for further growth in higher margin segments. The merger is expected to create a competitive and large player in the market, with synergies estimated to be around 2% of revenue, translating to at least EUR8 million.