Q3 2024 Bewi ASA Earnings Call Transcript
Key Points
- The market is showing signs of recovery with low inflation and decreasing interest rates, which is positive for the building and construction industry.
- Orders for foundation systems have increased by 15% in the Netherlands over the last two quarters, indicating a promising outlook.
- The downstream units delivered solid results due to strong cost discipline and focus on margin management.
- The packaging business saw a significant improvement, contributing to over half of the group's EBIT for the quarter.
- Bewi ASA (STU:5T0) has launched a cost-cutting program expected to save EUR6 million annually, enhancing competitiveness and profitability.
- The upstream units, particularly raw and circular, experienced weak results due to heavy competition and pressure on margins.
- Net sales for the quarter were EUR252 million, down by 5% compared to last year.
- The HVAC market remains slow, although there is optimism about future growth.
- The automotive business is under strategic review, indicating potential challenges or restructuring needs.
- The financial performance of the circular segment continues to face headwinds, with low availability of waste and low demand in the building construction industry impacting profitability.
Hello and welcome to the presentation of the third quarter result for baby.
My name is Christian Bekken. And together with me as always, our Co Marie Danielsson today, we will touch upon three things.
One, the market is recovering two. We deliver a good result in our downstream but somewhat weak in our upstream units and three what we do to improve and position ourselves for growth.
Let's start with a quick market update here. There are plenty of signs pointing to the right direction.
The inflation is pretty low.
Interest rates have come down and are expecting to drop even further. This is very positive for the building and construction industry in Bavi. We are seeing activity at our customer centers, but more importantly, orders of foundation systems are increasing, especially in the Netherlands. Here we see a 15% increase the last two quarters compared to last year.
A very promising indicator of what's to come.
The market for HVAC system follows the building and construction industry
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