In This Article:
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Revenue: EUR 277 million for Q2 2024, down 4% year-over-year.
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EBITDA: EUR 29 million, including EUR 7 million compensation related to Synbra acquisition costs.
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Operational Cash Flow: EUR 23 million for the quarter.
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Available Liquidity: Over EUR 100 million at the end of the quarter.
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Inventory Reduction: EUR 20 million reduction in working capital since last year.
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Net Debt Reduction: EUR 30 million reduction since June last year.
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Styrene Monomer Price Increase: 20% increase since Q2 last year.
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EPS Price Increase: 6% increase compared to last year.
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CapEx: Reduced investment levels, expected to remain low into 2025.
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Net Debt Leverage: Decreased to 4.8%.
Release Date: August 21, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bewi ASA (STU:5T0) reported a solid operational cash flow of EUR23 million for the quarter, supported by a reduction in working capital.
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The company ended the quarter with over EUR100 million in available cash and liquidity, indicating strong financial positioning.
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Bewi ASA has started selling certified recycled EPS (CR EPS), which is expected to increase market volumes and provide a competitive advantage.
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The company has doubled its capacity in construction boards with a new production line, which is expected to boost sales in high-value products.
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Bewi ASA is strategically positioned to capitalize on market recovery, with a focus on energy-efficient solutions and insulation, which are expected to provide synergies across divisions.
Negative Points
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Revenues for the quarter were down by 4% to EUR277 million, reflecting the challenging market conditions.
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The company experienced weak margins in its RAW segment due to volatile styrene monomer prices, impacting gross margins negatively.
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Sales in the Circular segment decreased by approximately 15% compared to last year, with ongoing challenges in accessing waste streams and profitability.
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The Packaging & Components segment saw a decline in sales and EBITDA, with lower margins due to pricing lags in the fish box segment.
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Despite efforts to reduce costs, personnel costs increased due to salary hikes influenced by underlying inflation.
Q & A Highlights
Q: Can you provide an overview of BEWI's financial performance for the second quarter of 2024? A: Christian Bekken, CEO, reported revenues of EUR277 million, a 4% decrease, and an EBITDA of EUR29 million, including EUR7 million from acquisition-related compensation. Despite challenging markets, the company maintained a strong focus on cash flow and balance sheet strength, achieving an operational cash flow of EUR23 million.