Q2 2024 Bewi ASA Earnings Call Transcript
Key Points
- Bewi ASA (STU:5T0) reported a solid operational cash flow of EUR23 million for the quarter, supported by a reduction in working capital.
- The company ended the quarter with over EUR100 million in available cash and liquidity, indicating strong financial positioning.
- Bewi ASA has started selling certified recycled EPS (CR EPS), which is expected to increase market volumes and provide a competitive advantage.
- The company has doubled its capacity in construction boards with a new production line, which is expected to boost sales in high-value products.
- 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.
- Revenues for the quarter were down by 4% to EUR277 million, reflecting the challenging market conditions.
- The company experienced weak margins in its RAW segment due to volatile styrene monomer prices, impacting gross margins negatively.
- Sales in the Circular segment decreased by approximately 15% compared to last year, with ongoing challenges in accessing waste streams and profitability.
- The Packaging & Components segment saw a decline in sales and EBITDA, with lower margins due to pricing lags in the fish box segment.
- Despite efforts to reduce costs, personnel costs increased due to salary hikes influenced by underlying inflation.
Hello, and welcome to the presentation of the results for the second quarter of 2024 for BEWI. My name is Christian Bekken, and together with me, as always, our CFO, Marie Danielsson. Today, we will focus on three things. The market is still tough, but there are clear signs of improvements. How are we positioned in order to accelerate growth when the market comes back? And number three, what makes BEWI better positioned than our competitors? Put your attention to the disclaimer.
We had revenues of EUR277 million for the quarter, down by 4%, which we are relatively pleased with given the tough markets. An EBITDA of EUR29 million, of which approximately EUR7 million is compensation for costs we have had related to the acquisition of Synbra.
Weak margins from RAW but more positive results and development from downstream. Marie will go more into the details later. We have now had a challenging and declining markets for almost two years. Throughout this period, we have clearly shown our ability to adapt for the market situation, good or
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