BEWI - Results for the fourth quarter of 2022

16 Feb 2023 07:00 CET

Delivering solid results in continued challenging markets

BEWI, a leading provider of packaging, components, and insulation solutions,
today reported its results for the fourth quarter and full year 2022. The
company recorded net sales of 275.7 million euro for the fourth quarter of 2022,
up by 32 per cent compared to the 208.2 million euro for the same quarter of
2021, with an adjusted EBITDA of 24.4 million, compared to 26.4 million last
year.

"We are very pleased to deliver another quarter with growth and solid results,
despite challenging market conditions. The results are negatively impacted by
the contribution from Jackon's Nordic insulation business. We are of course not
satisfied with this performance, and we are implementing measures to adjust
capacity and reduce costs to meet the current market conditions," says Christian
Bekken, CEO of BEWI ASA.

For the full year 2022, BEWI's net sales amounted to 1 050.4 million euro, an
increase of 40 per cent over 2021, including 17 per cent organic growth
following price increases and additional volumes at the new Senja facility.
Adjusted EBITDA was 133.6 million for the full year, up 23 per cent from the
previous year, of which approximately half of the growth was organic.

Including full effect from companies acquired in 2022, BEWI had annual sales of
more than 1 500 million euro, which is a doubling of the reported sales for
2021. Through acquisitions, the company has significantly strengthened its
market positions, expanded into the UK, the Baltics and Spain, broadened its
product offering, and further developed its recycling platform, all in line with
the company's strategic priorities.

For the fourth quarter, BEWI experienced variations in market demand between
segments and regions. The building and construction industry had reduced
activity, especially in the Nordics, impacting volumes for segment RAW and
Insulation. Food packaging was stable, and the demand from the automotive
industry developed positively.

EPS raw material prices decreased approximately 20 per cent from the third to
the fourth quarter of 2022, resulting in a margin shift from segment RAW to the
downstream segments, in line with the company's communicated outlook in the
third quarter report.

"We are especially pleased to record a significantly improved EBITDA margin for
the Insulation segment, excluding Jackon, given the current market conditions,"
Bekken continues.

Jackon's insulation business, of which approximately 65 per cent of the sales
are to the Nordic markets, had a negative contribution for the fourth quarter,
mainly due to lack of price adjustments to compensate for the higher cost level.
To improve the profitability and in response to the current market conditions,
BEWI has initiated measures to reduce its production capacity. This includes
reduced shifts at several facilities, and planned closure of at least one
facility. In addition, the company is initiating measures to reduce the cost
base of its Nordic Insulation division, with annual savings of approximately 5
million euro.

"In addition to the annual cost savings of 5 million euro, we remain very
comfortable with our communicated range for synergies of more than 15 million
euro, and we also remain very comfortable with how Jackon complements us,"
Bekken continues.

Going forward, BEWI will continue focusing on integrating acquired companies,
extract synergies, and adjust production capacity and cost level to the current
market conditions.

The building and construction industry is expected to decline approximately 10
per cent in 2023 compared to 2022. Approximately 60 per cent of BEWI's business
is exposed to this industry. Still, the long-term demand for insulation
solutions is supported by strong market fundamentals, including the need to
improve energy-efficiency in buildings and related regulations. Food packaging
is expected to remain stable, with positive contribution from organic
initiatives and M&As, and demand for both technical and automotive components is
solid.

The board of directors of BEWI proposes to the general meeting to pay a dividend
of NOK 0.60 per share, in line with the company's dividend policy of 30 to 50
per cent of net profit. The dividends are proposed to be distributed following a
sale of the company's real estate portfolio.

The board of directors remain confident in BEWI's robust business model, strong
organisation, and the outlook for continued profitable and sustainable growth of
the company.

Please find attached the full report for the fourth quarter and full year 2022,
the presentation of the results and the financials spreadsheet.

CEO Christian Bekken and CFO Marie Danielsson will present the results from
08:30 at the premises of Carnegie at the 5th floor of Fjordalleen 16 at Aker
Brygge in Oslo, Norway. The presentation is open to all. The presentation will
also be available through a live webcast. The link to the webcast is available
from BEWI's homepage www.bewi.com. It will be possible to post questions through
the webcast, and a recording of the webcast will be made available from BEWI's
website.

For further information, please contact:

Charlotte Knudsen, Director of IR and Communications BEWi ASA, tel: +47 9756
1959

Marie Danielsson, CFO BEWI ASA, tel: +46 70 661 0047

About BEWI ASA

BEWI is an international provider of packaging, components, and insulation
solutions. The company's commitment to sustainability is integrated throughout
the value chain, from production of raw materials and end goods, to recycling of
used products. With a vision to protect people and goods for a better every day,
BEWI is leading the change towards a circular economy.

BEWI ASA is listed at the Oslo Børs under ticker BEWI.

The information is such that BEWI ASA is required to disclose in accordance with
the EU Market Abuse Regulation. The information was submitted for publication,
through the agency of the contact person set out above, at 07:00 CET on 16
February 2023

More information:
Access the news on Oslo Bors NewsWeb site

582594_BEWI_Q4_2022_report.pdf
582594_BEWI_Q4_2022_presentation.pdf