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Bewi Invest AS
Quarterly Report • Nov 6, 2024
3556_rns_2024-11-06_232bb9db-8397-48b4-8272-36d307eb6586.pdf
Quarterly Report
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Quarterly report
Contents
2
| Comments from the CEO | 3 |
|---|---|
| Highlights | 5 |
| Group | 5 |
| Segment | 7 |
| Financial review | 8 |
| APM | 20 |
| Financial statements | 25 |
| Consolidated condensed interim statement of income | 25 |
| Consolidated condensed interim statement of comprehensive income | 26 |
| Profit attributable to | 26 |
| Consolidated condensed interim statements of financial position | 27 |
| Consolidated condensed interim statements of changes in equity | 29 |
| Consolidated condensed interim statements of cash flows | 30 |
| Notes to the financial statements | ||
|---|---|---|
| Note 01 | General information | 31 |
| Note 02 | Accounting policies | 31 |
| Note 03 | Related party transactions | 32 |
| Note 04 | Segment information | 33 |
| Note 05 | Depreciation/amortisation and impairment of tangible and intangible fixed assets |
36 |
| Note 06 | The group's borrowings | 37 |
| Note 07 | Fair value and financial instruments | 38 |
| Note 08 | Net financial items | 39 |
| Note 9 | Shares in associates | 40 |
| Note 10 | Earnings per share | 40 |
| Note 11 | Five-year summary | 41 |
| Note 12 | Quarterly data | 42 |
Comments from the CEO
Improved earnings for downstream in a market showing signs of recovery
In the third quarter of 2024, BEWI's downstream business improved its EBITDA compared to the same quarter last year, as a result of cost reductions and successful margin management. Despite lower volumes, the insulation business managed to improve its underlying earnings. Packaging delivered solid results for the quarter, up 11 per cent from last year, making up more than half of the result for the quarter. For the upstream segments RAW and Circular, the market conditions remain challenging, and an extensive cost reduction programme is initiated.
Net sales came in at 252.1 million euro for the third quarter of 2024, compared to 266.6 million euro for the same quarter of 2023. Adjusted EBITDA was 23.1 million euro, slightly down from 24.0 million euro for the third quarter of 2023. Operational cash flow came in strong at 49.1 million euro, including a decrease in working capital of 38.3 million euro coming from receivables financing.
The building and construction market in general was weak, impacting all our segments. As a consequence of the tough market, RAW saw a further contraction of the GAP in the quarter, as the styrene prices increased more than the EPS prices in the market. We have therefore initiated an extensive cost reduction programme for the segment with estimated annual savings of approximately 6 million euro.
On a positive note, there are signs of improvement in the insulation markets. Benelux, our largest and most profitable region, shows stable volumes in general and increased volumes for foundation systems. This is an indicator of increased activity going forward. Despite a continued challenging market, our German insulation business delivered strong result improvements after a successful turnaround. Also in Lithuania, where conditions continue to be tough, we have a solid improvement over the previous quarter following measures implemented. Interest rate cuts across Europe are expected to boost activity in the building and construction industry, however the timing of when this will materialise in our volumes is uncertain. As expected, the packaging business delivered a solid quarter. The contribution from EPS fish boxes increased, following higher volumes, in line with communications in previous reports.
We are seeing signs of recovery in several of our markets. In the meantime, we continue the focused efforts to adjust cost and capacity to the existing markets
For Circular, it is a constant battle to collect EPS for recycling. Six years ago, we sat a very ambitious collection target. At that time, we did not fully realize how immature and fragmented this market was – and still is. With the new circular hub in Sweden that opened in May this year, and the new production line for RAW in the Netherlands, we have significantly increased our capacity to recycle and use the recycled material. Collected volumes were approximately 9 000 tonnes this quarter and 20 000 so far this year, which is significant in today's market.
BEWI has clearly stated a strong ambition for growth going forward. To position ourselves to capture attractive opportunities, in particular within insulation and HVAC, we steadily work with operational, strategic, and financial measures.
As part of this positioning, we recently announced that we will be merging a part of our packaging business with the Danish company STOK Emballage. This entails the traded packaging business in Norway and Iceland, which are the value-added distribution of products we do not produce in-house. STOK's product range complements ours very well, allowing us to significantly expand the offering to customers, which is one of the reasons why we retain an ownership of approximately 15 per cent in the combined company. The transaction allows a strengthened focus on the core packaging business, and aligns with our communicated strategy on finding partners, and re-allocating capital and resources toward high-potential growth areas. Upon completion of the transaction, we will receive 20 million euro in cash, in addition to the ownership.
Furthermore, in September, we entered into a new financing agreement, under which we have the opportunity to finance accounts receivables for up to 75 million euro. This financing provides us with more attractive terms than the existing credit facility, as well as a more flexible financing. We are therefore evaluating to further expand on this type of financing to fuel growth.
As mentioned, we are seeing signs of recovery in several of our markets. In the meantime, we continue the focused efforts to adjust cost and capacity to the existing markets. We benefit from a broad offering of sustainable solutions, and we remain confident in our strategy and the long-term potential for our value proposition. With a strengthened balance sheet, and an operational organisation with a lower cost base, we are well positioned to swiftly capitalise on higher demand when the market rebounds.
Trondheim, Norway, 5 November 2024,
Christian Bekken, CEO BEWI ASA
Group highlights
(numbers in parenthesis refers to comparable figures for the corresponding period of 2023)
Highlights for the third quarter of 2024
- Net sales of EUR 252.1 million (266.6), down by 5.4 per cent
- Adj. EBITDA of EUR 23.1 million (24.0), down by 3.8 per cent
- Opening of new production line of XPS construction boards in Olen, Belgium
- Reduced working capital and strengthened balance sheet through receivables financing
Highlights for the first nine months of 2024
- Net sales of EUR 773.3 million (852.6), down by 9.3 per cent
- Adjusted EBITDA of EUR 71.1 million (83.7) down by 15.0 per cent
- Compensation of EUR 7.6 million related to a company acquired in 2018
- Completed divestment of real estate portfolio
- Initiated strategic review of the automotive business
Subsequent events
2021 Artbox Report Template All rights reserved © Artbox AS 2021
- Agreement to merge traded food packaging business with STOK Emballage
- Initiated cost reduction programme in RAW with estimated annual savings of EUR 6 million
Adj. EBITDA EUR million
Net sales distribution across segments
For Q3 2024, the share of net sales per segment was rather stable and in line with the previous quarter, with a slight increase in the contribution from Packaging & Components (P&C), and a corresponding decrease from RAW and Insulation & Construction (I&C). I&C continue to be the group's largest segment in terms of sales.
Adj. EBITDA distribution across segments
The downstream segments account for an increasing share of the group's EBITDA, a trend that continued in the third quarter this year following reduced margins for the upstream segments RAW and Circular while EBITDA increased for the downstream segments, driven by P&C.
Consolidated key figures1
| Amounts in million EUR (except percentage) | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
|---|---|---|---|---|---|
| Net sales | 252.1 | 266.6 | 773.3 | 852.6 | 1 105.3 |
| Operating income (EBIT) | 4.5 | 3.7 | 20.6 | 27.7 | 33.5 |
| EBITDA | 22.4 | 22.1 | 72.9 | 79.7 | 101.9 |
| EBITDA margin (%) | 8.9% | 8.3% | 9.4% | 9.3% | 9.2% |
| Adj. EBITDA | 23.1 | 24.0 | 71.1 | 83.7 | 108.8 |
| Adj. EBITDA margin (%) | 9.2% | 9.0% | 9.2% | 9.8% | 9.8% |
| Items affecting comparability | -0.7 | -2.0 | 1.7 | -4.0 | -7.0 |
| Adj. EBITA | 8.5 | 8.8 | 29.1 | 41.0 | 53.5 |
| Adj. EBITA margin (%) | 3.4% | 3.3% | 3.8% | 4.8% | 4.8% |
| Net profit/loss for the period | -8.8 | -8.3 | -15.7 | -6.1 | -15.6 |
| Earnings per share, adj. (EUR) | -0.03 | -0.02 | -0.05 | -0.02 | 0.01 |
| Capital Expenditure (CAPEX) | -6.9 | -12.6 | -23.4 | -40.1 | -51.7 |
| Return on average capital employed (ROCE)% | 4.3% | 5.9% | 4.3% | 5.9% | 5.4% |
| Total number of outstanding shares | 191 722 290 |
191 722 290 |
191 722 290 |
191 722 290 |
191 722 290 |
1 See definitions of alternative performance measures not defined by IFRS
Net sales distribution across countries
Norway, Germany, and the Netherlands are the group's three largest markets. In Norway, the seafood industry is the group's most important end market, to which it sells EPS fish boxes and traded packaging products. In Germany and the Netherlands, the building and construction industry is the most important end market, to which the group sells insulation solutions and raw materials.
92.8
13.7
Segment highlights
Net sales decreased by 3 per cent from Q3 2023. Sales prices increased compared to Q3 last year, partly compensating for a decrease in volume. Expectations of lower prices in October resulted in customers keeping low inventories towards the end of the quarter, impacting volumes in addition to the already slow market.
Adj. EBITDA decreased by 44 per cent explained by lower volumes and decrease in GAP, partly compensated by improved production cost structure and lower fixed cost.
Adj. EBITDA EUR million
RAW Insulation & Construction (I&C) Packaging & Components (P&C) Circular
Net sales decreased by 5 per cent from Q3 2023. Volumes were down, partly offset by higher prices. The building and construction market was weak, and the seasonal impact of the summer was stronger than normal. There are signs of improvements, and in Benelux, an important region to BEWI, volumes were in line with last year.
Adj. EBITDA was in line with Q3 2023, despite lower volumes and contribution from shares in associates, as underlying operations delivered an improved EBITDA through margin management and cost control.
Adj. EBITDA EUR million
Net sales were in line with Q3 2023. Overall, volumes were in line with last year, however, with variations across product types and regions.
Adj. EBITDA increased by 11 per cent, mainly explained by the favorable raw material price development and cost control within the segment. In addition, the contribution from the automotive business increased compared to last year, mainly as a result of higher volumes and improved product mix.
Q3-23 Q4-23 Q1-24 Q2-24 Q3-24
Q3-23 Q4-23 Q1-24 Q2-24 Q3-24
Net sales EUR million
Adj. EBITDA EUR million
Net sales were down by 9 per cent from Q3 2023. The volumes were in line with last year, but the sales prices were lower.
Adj. EBITDA amounted to a negative EUR 1.5 million compared to a negative EUR 0.7 million in Q3 2023.
The collection of used EPS for recycling has increased each quarter during the year, reaching almost 9 000 tonnes in the quarter.
Financial review
(Information in parentheses refers to the corresponding periods the previous year).
Profit and loss
Changes compared to the corresponding periods in 2023 relate to organic developments (i.e., change in volumes or prices) or currency effects.
Third quarter of 2024
Net sales amounted to EUR 252.1 million for the third quarter of 2024 (266.6), a decrease of 5.4 per cent, of which currency effects had a negative impact of 0.2 per cent. The decrease is explained by lower volumes partly compensated by higher sales prices following higher raw material prices.
The activity in the building and construction industry remained low in the quarter, however, still with signs of improvement in some markets. Due to the soft markets, the seasonal effect of the summer vacation in Europe had a more negative impact on the volumes than normal. In addition, as raw material prices were expected to go down in October, RAW's customers kept low inventories in September, also negatively impacting volumes.
Adjusted EBITDA came in at EUR 23.1 million for the quarter (24.0), representing a decrease of 3.8 per cent, of which currency had a negative effect of 0.9 per cent.
The decrease is mainly explained by reduced volumes and pressure on margins in segment RAW, in addition to reduced contribution to I&C from shares in associates. On a positive note, underlying operations in I&C delivered a 3.3 per cent improved EBITDA, while P&C demonstrated 10.9 per cent improvement in its EBITDA.
Following strict cost control and measures to reduce cost, all segments have managed to reduce its fixed costs compared to the third quarter last year, despite the underlying inflation.
The adjusted EBITDA margin was 9.2 per cent for the quarter (9.0).
For more information on the development in net sales and EBITDA, see explanations under each segment and the revenue and EBITDA bridges.
Operating income (EBIT) was EUR 4.5 million for the quarter (3.7). The lower EBIT is largely explained by the lower adjusted EBITDA.
Net financial items amounted to a negative EUR 12.6 million for the quarter (-11.3). The higher financial expenses are mainly explained by increased interest expenses from additional leasing contracts.
Taxes amounted to a negative EUR 0.7 million (-0.7).
Net profit for the third quarter of 2024 ended at negative EUR 8.8 million (-8.3).
First nine months of 2024
Net sales amounted to EUR 773.3 million for the first nine months of 2024 (852.6), corresponding to a decrease of 9.3 per cent due to lower volumes as explained for the quarter.
Adjusted EBITDA ended at EUR 71.1 million for the first nine months of 2024 (83.7), a decrease of 15.0 per cent from 2023.
Operating income (EBIT) came in at EUR 20.6 million for the period (27.7).
Net financial items amounted to a negative EUR 34.8 million for the first nine months of 2024 (-31.0).
Taxes amounted to a negative EUR 1.5 million for the first nine months (-2.8).
Net profit for the first nine months of 2024 was negative EUR 15.7 million (-6.1).
and volatile market prices, resulting in pressure on the GAP
Market development
The building and construction industry accounts for approximately 70 per cent of the sales from segment RAW. The downturn in this industry the past years has therefore had a significant negative impact on the volumes for the segment.
Producers of the EPS raw material are running at reduced capacity but the competition in the market remains strong. In addition, customers are cautious, resulting in low visibility.
Compared to the third quarter of 2023, the official styrene price increased by 11 per cent while the market price for EPS only increased by 3 per cent, resulting in a lower GAP. From the second to the third quarter this year, the styrene price decreased by 6 per cent and the market price for EPS by 7 per cent.
Operational review
Launch of cost reduction programme in RAW
In October 2024, BEWI launched an extensive cost reduction programme in segment RAW. The programme is expected to yield effects from 2025, with estimated annual savings of EUR 6 million.
The cost programme will improve efficiency and thus increase the competitiveness and profitability of RAW.BEWI anticipates a significant increase in demand for materials for the improved energy-efficiency of buildings in the coming years, including the company's white and grey EPS raw materials.
Ramp-up of volumes at new production line in Etten-Leur, the Netherlands
In December 2023, BEWI opened a new production line for EPS at the raw material facility in Etten-Leur. The new line, with an annual capacity of up to 25 000 tonnes of EPS, significantly strengthens BEWI's production capacity for grey EPS and for using recycled material, enabling a broadened product offering to the customers.
During the third quarter, all material from the new extruder have been fire certified which increase the commercial reach.
EPS grades with reduced CO2 footprint
BEWI's raw material production facilities are certified through the REDcert+ scheme, enabling BEWI to allocate recycled material into selected products, based on customer preferences.
Segment RAW develops and produces raw material for use in end products. The materials include a range of white and grey EPS, GPPS, and Biofoam, a fully bio-based particle foam. The materials are based on virgin and/ or recycled feedstock. The raw material is sold internally and externally for production of end products. Raw material is produced at 3 facilities located in Finland, the Netherlands, and Germany.
In April 2024, RAW launched new EPS grades called Circulum Balance, which is based on recycled feedstock. The products are mainly directed at packaging products. RAW has also recently introduced a new product line of recycled grey EPS raw material, designed for use in insulation solutions, with up to 40 per cent recycled feedstock.
Financial review
Third quarter of 2024
Net sales for segment RAW amounted to EUR 79.2 million for the quarter (81.8), a decrease of 3.2 per cent compared to the corresponding quarter of 2023. The decrease is driven by lower volumes partly off-set by higher market price on EPS.
The activity in the building and construction industry remained low in the quarter, with a stronger seasonal effect from summer holidays due to the soft markets. Furthermore, expectations of lower prices in October resulted in customers keeping extra low inventories towards the end of the third quarter, impacting volumes.
Adjusted EBITDA EBITDA came in at EUR 1.9 million for the third quarter of 2024 (3.3), corresponding to a decrease of 44.3 per cent. The decrease is explained by lower volumes and GAP.
On a positive note, segment RAW has managed to reduce fixed costs, despite inflation. Also, the ramp-up of the new production line (extruder) in Etten-Leur has progressed well, resulting in improved cost structure for the line.
First nine months of 2024
Net sales for the first nine months of 2024 were EUR 242.0 million (260.8), a decrease of 7.2 per cent from the same period last year explained by lower volumes partly offset by increased sales prices.
Adjusted EBITDA ended at EUR 14.3 million for the first nine months of the year (17.3).
| Amounts in million EUR | |||||
|---|---|---|---|---|---|
| (except percentage) | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
| Net sales | 79.2 | 81.8 | 242.0 | 260.8 | 338.1 |
| Of which internal | 34.7 | 31.3 | 104.0 | 102.3 | 129.0 |
| Of which external | 44.5 | 50.5 | 138.0 | 158.4 | 209.1 |
| Net operating expenses | -77.3 | -78.5 | -227.7 | -243.5 | -314.1 |
| Adjusted EBITDA | 1.9 | 3.3 | 14.3 | 17.3 | 24.1 |
| Adjusted EBITDA % | 2.3% | 4.1% | 5.9% | 6.6% | 7.1% |
| Items affecting comparability | - | - | - | - | -0.4 |
| EBITDA | 1.9 | 3.3 | 14.3 | 17.3 | 23.7 |
| Depreciations | -1.1 | -1.4 | -3.6 | -3.9 | -5.0 |
| CAPEX | -0.4 | -3.1 | -2.3 | -8.8 | -9.9 |
| Full-time equivalents | 261 | 274 | 262 | 266 | 266 |
1 Based on total net sales for operating segments 2 Based on total adj. EBITDA for operating segments
Segment Insulation & Construction (I&C)
Improved EBITDA from underlying operations (excl. shares in associates). Signs of improvement in certain markets
Market development
The I&C segment is primarily exposed to the building and construction industry, where the activity has been significantly reduced the last two years. Although volumes are still at low levels, there have been signs of improvement in some markets the past couple of months. Housing prices are increasing in many countries and the issuance of building permits has risen. In addition, at the beginning of the construction value chain, volumes of building materials (eg. concrete, cement and bricks) have started to recover.
BEWI experience variations across regions. For the Nordics, Baltics and Germany, volumes were down this quarter compared to the same quarter last year, while for the Netherlands, the most important market for BEWI's insulation business in terms of EBITDA contribution, volumes were in line with the third quarter last year
The third quarter is seasonally weaker than the second quarter due to summer vacations. This year, the seasonal impact was larger than normal, due to the soft markets.
Most of the segment's products and solutions can be used for both newbuilds and renovations. Currently, approximately 25 per cent of the sales are to renovation. The share is lower in the Nordics and higher in other European markets.
Operational review
New production line for construction boards in Olen, Belgium
In July 2024, BEWI opened a new production line for construction boards in Olen in Belgium. The new line complements the existing facility in Mechau in Germany, significantly strengthening the capacity of this high value solution. Most of this solution is sold to renovation projects.
Capacity and cost adjustments
From early 2023 and to date, BEWI has implemented significant measures in its insulation business to reduce capacity and costs to adapt to the lower activity, as well as to optimise its production footprint following acquisitions. The measures have been important to maintain margins at satisfactory levels in declining markets.
As part of these adjustments, the number of full-time equivalents (FTEs) was reduced by approximately 10 per cent in 2023 and was further reduced by approximately 7 per cent during the first nine month of 2024.
Segment I&C develops and manufactures an extensive range of insulation solutions for the building and construction industry, including solutions for foundations, walls, roofs, and ceilings, as well as infrastructure projects. BEWI's insulation solutions are produced at 28 facilities in 11 countries. In addition, BEWI has minority interests in 5 facilities in France and 6 facilities in Germany.
Segment Insulation & Construction (I&C)
Financial review
Third quarter of 2024
Net sales came in at EUR 107.6 million for the quarter (113.1), 4.9 per cent down from the corresponding quarter of 2023. The decrease is explained by lower volumes, partly compensated by higher prices.
Following the continued soft markets, the seasonal impact from the summer vacations had a stronger impact this year than normal.
Adjusted EBITDA ended at EUR 9.9 million for the quarter (10.1), a decrease of 1.1 per cent, or EUR 0.2 million.
The result was negatively impacted by the lower volumes, in addition to a EUR 0.5 million lower contribution from shares in associates compared to the third quarter last year.
Despite the lower volumes, underlying operations (excl. shares in associates) delivered a 3.3 per cent increase in EBITDA, and the segment improved its EBITDA margin to 9.2 per cent, up from 8.9 per cent in the third quarter last year. The improved results follow successful cost and capacity reductions in the segment the past year, combined with strong margin management. The latter includes both actively adjusting prices, as well as a sharpened focus on profitable
volumes. In parallel, the segment works to maintain its market positions, to capture growth when the demand returns.
Furthermore, the segment has reduced its fixed cost by 10.2 per cent compared to the third quarter of 2024, despite underlying inflation.
First nine months of 2024
Net sales for the first nine months of 2024 were EUR 326.5 million (358.5), a decrease of 8.9 per cent from the same period last year explained by lower volumes partly offset by higher prices.
Adjusted EBITDA ended at EUR 27.5 million for the first nine months of the year (30.7).
| Amounts in million EUR | |||||
|---|---|---|---|---|---|
| (except percentage) | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
| Net sales | 107.6 | 113.1 | 326.5 | 358.5 | 458.4 |
| Of which internal | 0.4 | 0.8 | 1.6 | 1.7 | 2.4 |
| Of which external | 107.2 | 112.3 | 324.9 | 356.7 | 456.0 |
| Net operating expenses | -97.6 | -103.0 | -299.0 | -327.8 | -417.8 |
| Adjusted EBITDA | 9.9 | 10.1 | 27.5 | 30.7 | 40.6 |
| Adjusted EBITDA % | 9.2% | 8.9% | 8.4% | 8.6% | 8.9% |
| Items affecting comparability | 0.0 | -1.9 | 0.8 | -3.6 | -4.9 |
| EBITDA | 10.0 | 8.1 | 28.2 | 27.0 | 35.7 |
| Depreciations | -5.9 | -6.9 | -16.6 | -19.4 | -23.9 |
| CAPEX | -0.8 | -3.1 | -3.9 | -10.5 | -15.6 |
| Full-time equivalents | 1 242 | 1280 | 1 229 | 1 332 | 1 322 |
Nordics & Baltics 39% Germany 11% Benelux 24% Other 27% 37% of total net sales1 in Q3 2024 41% of total adj. EBITDA2 in Q3 2024 1 Based on total net sales for operating segments Based on segment's Q3 2024 net sales and customer location
2 Based on total adj. EBITDA for operating segments
Jointly owned
Segment Packaging & Components (P&C)
Market development
The P&C segment offers a wide range of products to different end-markets. For the third quarter of 2024, approximately 65 per cent of the segment's sales was related to food packaging, including EPS fish boxes and traded products. Fish box volumes increased somewhat compared to the third quarter last year.
Sales of automotive components accounted for nearly 20 per cent in the quarter and was up by 10 per cent compared to the third quarter of 2023. Industrial products make up the remaining 15 per cent and include protective packaging and technical components such as components to HVAC systems. The volumes of these products started to decline in the third quarter of 2023, following a slowdown in many industries in Europe. Demand for HVAC systems follows the building and construction industry and will gradually improve in line with increases in the newbuild and refurbishment markets, and on the back of regulations requiring a more energy-efficient building sector.
Operational review
Strategic review and strengthening of the Automotive business
In June 2024, BEWI initiated a strategic review of its automotive business, targeting to further develop this business, as well as to potentially re-allocate capital to accelerate growth in insulation and other energy-efficient solutions. In 2023, the automotive business had an annual turnover of approximately EUR 75 million.
In the third quarter of 2024, BEWI completed an agreement to acquire assets from Philippine Group, including equipment from two facilities, inventory, customer stock, and personnel, in addition to IPR and certificates. The acquisition increases BEWI's capacity and broadens the customer base.
Investing in increased capacity for paperbased packaging solutions
BEWI experiences increased demand for paper-based packaging solutions. The group is therefore investing in expansion of its production capacity at its facility in Thorsøe, Denmark, where it is currently producing protective paper packaging (honeycomb structure). The project is expected to double the production capacity, with an estimated completion in 2024.
Segment P&C develops and manufactures packaging solutions, and technical components for customers in many industrial sectors, including boxes for transportation of fresh fish, protective packaging for pharmaceuticals and electronics, and automotive components. The material is mainly composed of expanded polystyrene (EPS), expanded polypropylene (EPP), or fibre. In addition, the company sells traded products for food packaging. The solutions are produced at 33 facilities in 9 ccountries.
Segment Packaging & Components (P&C)
Financial review
Third quarter of 2024
Net sales amounted to EUR 92.8 million for the third quarter of 2024 (93.6), which was in line with the corresponding quarter of 2023.
Volumes of EPS fish boxes and automotive components increased compared to the third quarter last year, while volumes of traded products and HVAC components decreased.
Adjusted EBITDA amounted to EUR 13.7 million for the third quarter of 2024 (12.4), up by 10.9 per cent, mainly explained by increased contribution from the fish box - and automotive business. In addition, the segment has managed to reduce fixed costs despite underlying inflation.
Currency effects had a negative impact of EUR 0.2 million, or 1.3 per cent.
The EBITDA for the quarter was also significantly improved from the first and second quarter this year, as expected, mainly as a result of higher volumes for the fish box business following increased slaughter volumes. The segment has also had positive contribution from strong cost control and price management, as well as from restructuring activities initiated in 2023.
Items affecting comparability mainly consist of a negative adjustment on historical transactional cost.
First nine months of 2024
Net sales for the first nine months of 2024 were EUR 281.0 million (303.1), a decrease of 7.3 per cent from the same period last year explained by lower volumes.
Adjusted EBITDA ended at EUR 36.2 million for the first nine months of the year (40.5).
| Amounts in million EUR | |||||
|---|---|---|---|---|---|
| (except percentage) | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
| Net sales | 92.8 | 93.6 | 281.0 | 303.1 | 397.1 |
| Of which internal | 0.4 | 0.7 | 1.5 | 2.5 | 3.1 |
| Of which external | 92.4 | 93.0 | 279.5 | 300.5 | 394.0 |
| Net operating expenses | -79.1 | -81.3 | -244.8 | -262.6 | -345.1 |
| Adjusted EBITDA | 13.7 | 12.4 | 36.2 | 40.5 | 52.0 |
| Adjusted EBITDA % | 14.8% | 13.2% | 12.9% | 13.4% | 13.1% |
| Items affecting comparability | -0.2 | -0.6 | 3.0 | -0.7 | -1.3 |
| EBITDA | 13.5 | 11.8 | 39.2 | 39.8 | 50.7 |
| Depreciations | -6.5 | -6.2 | -18.8 | -17.3 | -23.1 |
| CAPEX | -4.8 | -4.4 | -11.5 | -13.7 | -16.2 |
| Full-time equivalents | 1 425 |
1361 | 1 416 |
1 371 |
1 377 |
Significantly increased collection in the quarter. The market for recycled EPS remains challenging
Market development
Segment Circular's key strategic priority is to secure waste streams, i.e. increase the collected volumes of material for recycling. This market is fragmented and immature.
The availability of EPS feedstock has been challenging in 2024. Partly due to less available volumes of packaging materials, and partly due to increased competition in the market for purchase of used EPS feedstock.
The demand for recycled material is currently impacted by the low activity in the building and construction industry to which most volumes are currently sold. However, packaging customers increasingly show interest in products based on recycled material as solutions for certified recycled EPS are now also available for food packaging.
Prices for recycled material correlate to some extent to the virgin raw material price. As the supply chain for Circular is longer than for the other segments, the segment is more sensitive to volatile raw material prices.
Operational review
Collection of EPS for recycling
During the third quarter BEWI collected 8 948 tonnes of EPS for recycling, which is a significant improvement from the previous quarters this year. So far this year, BEWI has collected 20 072 tonnes of EPS for recycling, down 4 per cent from the same period of 2023.
BEWI has many ongoing initiatives targeting to significantly increase the collection and has an ambitious target to collect 45 000 tonnes in 2024. This target is also one of the defined sustainability performance targets (SPT) in the group's sustainability linked bond loan.
Production of rGPPS
For the first nine months of 2024, Circular sold approximately 12 058 tonnes of recycled GPPS, an increase of 33 per cent compared to the same period of 2023. Recycled GPPS is mainly used in the production of XPS-based products or as feedstock in EPS raw material.
Segment Circular is responsible for BEWI's collection and recycling of used material. The segment offers different solutions for waste management and a range of recycled materials. As of 30 September 2024, BEWI operated 5 recycling facilities in 6 countries.
Financial review
Third quarter of 2024
Net sales for segment Circular amounted to EUR 12.3 million for the third quarter of 2024 (13.6), a decrease of 9.3 per cent, mainly explained lower sales prices in the market.
Adjusted EBITDA amounted to a negative EUR 1.5 million for the quarter (-0.7), also explained by the lower sales prices.
As earlier communicated, Circular has strengthened its organisation related to the new production line in Norrköping, adding cost compared to previous year. On the other hand, strict cost control has reduced the segment's fixed cost compared to previous year, despite the underlying inflation.
First nine months of 2024
Net sales for the first nine months of 2024 were EUR 38.9 million (45.6), a decrease of 14.6 per cent from the same period last year.
Adjusted EBITDA ended at EUR a negative 3.8 million for the first nine months of the year (-1.2).
| Amounts in million EUR | |||||
|---|---|---|---|---|---|
| (except percentage) | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
| Net sales | 12.3 | 13.6 | 38.9 | 45.6 | 57.7 |
| Of which internal | 4.3 | 2.8 | 8.0 | 8.9 | 11.7 |
| Of which external | 8.0 | 10.8 | 30.8 | 36.7 | 45.9 |
| Net operating expenses | -13.8 | -14.3 | -42.7 | -46.8 | -60.9 |
| Adjusted EBITDA | -1.5 | -0.7 | -3.8 | -1.2 | -3.2 |
| Adjusted EBITDA % | -12.2% | -5.4% | -9.7% | -2.6% | -5.5% |
| Items affecting comparability | - | -0.0 | -0.3 | -0.0 | -0.2 |
| EBITDA | -1.5 | -0.7 | -4.1 | -1.2 | -3.4 |
| Depreciations | -0.8 | -0.6 | -2.4 | -1.7 | -2.8 |
| CAPEX | -0.4 | -0.7 | -2.7 | -1.6 | -1.7 |
| Full-time equivalents | 133 | 112 | 129 | 116 | 113 |
1 Based on total net sales for operating segments 2 Based on total adj. EBITDA for operating segments
Corporate costs
Revenues and costs related to group functions that do not belong to any specific business segment are booked as unallocated corporate costs.
For the third quarter of 2024, the unallocated contribution to adjusted EBITDA amounted to a negative EUR 0.9 million (-1.0). For the first nine months of 2024, the contribution was negative EUR 3.0 million (-3.5).
Financial position and liquidity
Consolidated financial position
Total assets amounted to EUR 1 236.1 million on 30 September 2024, compared to EUR 1 253.4 million at year-end 2023.
Total equity was EUR 393.8 million on 30 September 2024, down from EUR 415.7 million at the end of 2023.
Net debt amounted to EUR 524.9 million at the end of September 2024 (285.2 excluding IFRS 16), compared to EUR 547.6 million at the end of 2023 (331.1 excluding IFRS 16).
Cash and cash equivalents were EUR 79.2 million on 30 September 2024, compared to EUR 63.6 million at year-end 2023.
Consolidated cash flow
Cash flow from operating activities amounted to EUR 49.1 million for the third quarter of 2024 (14.2), including a decrease in working capital of EUR 38.3 million (decrease of EUR 3.5 million).
The decrease in working capital was largely a result of the financing agreement entered into in the quarter, under which accounts receivable worth of EUR 40.9 million were financed (see more details under Events in the third quarter). Other measures to reduce the working capital continued in the quarter, although offset by the effect of lower accounts payable, partly due to the timing of styrene payments.
For the first nine months of 2024, cash flow from operating activities amounted to EUR 51.8 million (47.7), including a decrease in working capital of EUR 20.9 million (increase of 9.2). The improved cash flow was mainly explained by the financing of accounts receivables. Cash flow from working capital last year noted a positive effect from lower market prices compared to the year before. Cash flow from financial items last year was distorted by the EUR 15.0 million positive effect from the settlement of currency swaps.
Cash flow used for investing activities amounted to a negative EUR 7.6 million for the third quarter of 2024 (-12.4), mainly related to capital expenditures, which came in below those of the same period last year (see separate section below).
For the first nine months of 2024, cash flow from investing activities amounted to a positive EUR 11.8 million (-21.7). The period was positively impacted by the sale and leaseback transactions of properties in Germany, Poland and Belgium in sale and leaseback transactions, resulting in a cash inflow of EUR 37.0 million, net of transfer tax. Similar sale and leaseback transactions were recorded in the same period last year.
Cash flow from financing activities was negative EUR 29.3 million for the third quarter of 2024 (-2.0), mainly due to reduced utilisation of credit facilities, as well as repaid leasing liabilities.
For the first nine months of 2024, cash flow from financing activities amounted to a negative EUR 47.8 million (-29.4), for the same reasons as for the quarter.
Capital expenditures (CAPEX)
CAPEX amounted to EUR 6.9 million (12.6) for the third quarter this year.
For the first nine months of the year, CAPEX was EUR 23.4 million (40.1), a reduction of 42 per cent from the same period last year. Of this, EUR 6.0 million relate to strategic investments in the listed automotive company Izoblok.
BEWI has announced a CAPEX target of approximately EUR 20 million for the full year of 2024 and maintains strict operational CAPEX restrictions for the rest of 2024 and full year 2025.
Return on capital employed (ROCE)
Average return on capital employed was 4.3 per cent (5.9 per cent) for the third quarter of 2024 (see details on Alternative Performance Measures (APM)).
ROCE has declined for the last two years and is currently below the target of 20 per cent. This is a consequence of the many and large acquisitions completed in 2022, resulting in a significant increase of the balance sheet, combined with the downturn in the market experienced since then.
Organisation
In the third quarter of 2024, BEWI had 3 107 FTEs, compared to 3 073 in the third quarter of 2023.
Important events in the third quarter of 2024
Segment-specific events are described under each segment above. Below is a description of important events for the group in the third quarter of 2024.
Receivable purchase agreement
In September 2024, BEWI entered into a financing agreement with one of the two banks granting the company's revolving credit facility (RCF), in the form of a receivables purchase agreement (RPA). The RPA has more attractive margins than the RCF and provides a more flexible financing structure.
The RPA is an uncommitted facility with a frame of EUR 75 million. The available credit under the RCF, which has a frame of EUR 150 million , is reduced by the amount utilized under the RPA. At the end of
September, EUR 40.9 million was utilized under the RPA facility.
BEWI is evaluating a potential expansion of funding under an additional RPA programme as part of an attractive form of funding of growth.
Share information
On 30 September 2024, the total number of shares outstanding in BEWI ASA was 191 722 290, each with a par value of NOK 1. Each share entitles to one vote.
During the third quarter, the BEWI share traded between NOK 24.00 and NOK 29.10 per share, with a closing price of NOK 28.50 on 30 September 2024.
Events after the quarter
Agreement to merge traded food packaging business with Danish company STOK Emballage
On 24 October 2024, BEWI entered into agreement to merge its traded food packaging business with STOK Emballage (STOK), to form a leading Northern European packaging solutions business.
The transaction provides BEWI with an opportunity to further expand the traded food packaging business together with a competent partner with a track-record of profitable growth over several years. STOK's product portfolio complements BEWI's portfolio, creating a strong potential for synergies and further growth opportunities
The traded food packaging business is currently
reported under the P&C segment and includes net sales of approximately EUR 75 million, mainly to the seafood industry in Norway and Iceland. In 2023, STOK had sales of EUR 113 million, thus the combined company will have annual sales of close to EUR 190 million.
The agreed consideration will be settled in EUR 20 million cash, and an ownership position in the combined company of approximately 15 per cent. Closing is expected to take place during the fourth quarter of 2024 or first quarter of 2025.
The partnership aligns with BEWI's previous communication regarding the consideration of strategic partners for its divisions and intention to increase exposure to insulation and other energy-efficient solutions.
Outlook
All BEWI's segments are exposed to the building and construction industry, to which the group supplies raw materials, insulation – and other energy efficient solutions such as HVAC components, and recycled material. The activity in this industry has declined substantially the past two years and is still at low levels historically. However, there are signs of recovery in many markets.
Interest rates in Europe have come down, and are expected to drop further, which is positive for this industry. BEWI is experiencing variations across regions and products, with higher activity at its customer centres. In the Netherlands, the orders of foundation systems were up the past two quarters compared to the corresponding periods last year, indicating increased activity at the beginning of the construction value chain.
For food packaging products, the seafood industry is the most important end market for BEWI. Volumes of EPS fish boxes are directly related to the slaughter volumes of salmon, which varies according to biology and biomass. In the first half of 2024, BEWI stated that the group expected volumes of EPS fish boxes to increase in the second half of the year, and the third quarter volumes were in line with this.
BEWI remains confident in its strategy and the longterm potential for its solutions. For the EU to reach its target to become climate neutral by 2050, the building sector in Europe needs to significantly improve its energy efficiency, requiring old buildings to be renovated and new buildings to increase insulation.
The board of directors is confident that BEWI is well positioned to create value for its shareholders ahead by capturing attractive and profitable growth opportunities.
CEO
Trondheim, 5 November 2024
The board of directors and CEO of BEWI ASA
Gunnar Syvertsen
Chair of the Board
Anne-Lise Aukner
Director
Rik Dobbelaere Director
Andreas Akselsen Director
Kristina Schauman Director
Pernille Skarstein Christensen
Director Christian Bekken
Definitions of alternative performance measures not defined by IFRS
| Organic growth | Organic growth is defined as growth in net sales for the reporting period compared to the same period last year, excluding the impact of currency and acquisitions. It is a key ratio as it shows the underlying sales growth. |
|
|---|---|---|
| EBITDA | Earnings before interest, tax, depreciation, and amortisation. EBITDA is a key performance indicator that the group considers relevant for understanding the generation of profit before investments in fixed assets. |
|
| EBITDA margin | EBITDA as a percentage of net sales. The EBITDA margin is a key performance indicator that the group considers relevant for understanding the profitability of the business and for making com parisons with other companies. |
|
| EBITA | Earnings before interest, tax, and amortisations. EBITA is a key performance indicator that the group considers relevant, as it facilitates comparisons of profitability over time independent of corporate tax rates and financing structures but including depreciations of fixed assets used in production to generate the profits of the group. |
|
| EBITA margin | EBITA as a percentage of sales. The EBITA margin is a key performance indicator that the group considers relevant for understanding the profitability of the business and for making comparisons with other companies. |
|
| EBIT | Earnings before interest and tax. EBIT is a key performance indicator that the group considers relevant, as it facilitates comparisons of profitability over time independent of corporate tax rates and financing structures. Depreciations are included, however, which is a measure of resource consumption necessary for generating the result. |
|
| Items affecting comparability |
Items affecting comparability include transaction costs related to acquisition of companies, includ ing the release of negative goodwill from acquisitions, severance costs and other normalisations such as divestment of real estate, closing of facilities, unscheduled raw material production stops and other. |
| Adjusted (adj.) EBITDA | Normalised earnings before interest, tax, depreciation, and amortisation (i.e., items affecting com parability and deviations are added back). Adjusted EBITDA is a key performance indicator that the group considers relevant for understanding earnings adjusted for items that affect comparability. |
|---|---|
| Adjusted (adj.) EBITDA margin |
Normalised EBITDA before items affecting comparability as a percentage of net sales. The adjusted EBITDA margin is a key performance indicator that the group considers relevant for understanding the profitability of the business and for making comparisons with other companies. |
| Adjusted (adj.) EBITA | Normalised earnings before interest, tax, and amortisations (i.e., items affecting comparability and deviations are added back). EBITA is a key performance indicator that the group considers relevant, as it facilitates comparisons of profitability over time independent of corporate tax rates and financing structures but including depreciations of fixed assets used in production to generate the profits of the group. |
| Adjusted (adj.) EBITA margin |
Normalised EBITA before items affecting comparability as a percentage of sales. The EBITA margin is a key performance indicator that the group considers relevant for understanding the profitability of the business and for making comparisons with other companies. |
| ROCE | Return on average capital employed. ROCE is a key performance indicator that the group considers relevant for measuring how well the group is generating profits from its capital in use. ROCE is calculated as rolling 12 months adjusted EBITA as a percentage of average capital employed during the same period. Capital employed is defined as total equity plus net debt, and the average is calculated with each quarter during the measurement period as a measuring point. |
| Net debt | Interest-bearing liabilities excluding obligations relating to employee benefits, minus cash and cash equivalents. Net debt is a key performance indicator that is relevant both for the group's calculation of covenants based on this indicator and because it indicates the group's financing needs. |
| Adjusted (adj.) EPS | Earnings per share (EPS) adjusted for items affecting comparability, depreciations/amortisations attributable to fair adjustments in business combinations and fair value adjustments in financial items, Including tax on those items. Adjusted EPS is a key performance indicator considered rele vant for the group as it presents the EPS generated by the actual operations of the group. |
Reconciliation alternative performance measures
Alternative performance measures not defined by IFRS
| million EUR (except percentage) | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
|---|---|---|---|---|---|
| Operating income (EBIT) | 4.5 | 3.7 | 20.6 | 27.7 | 33.5 |
| Amortisations | 3.3 | 3.1 | 10.3 | 9.3 | 13.1 |
| EBITA | 7.8 | 6.8 | 30.9 | 36.9 | 46.6 |
| Items affecting comparability | 0.7 | 2.0 | -1.7 | 4.0 | 7.0 |
| Adjusted EBITA | 8.5 | 8.8 | 29.1 | 41.0 | 53.5 |
| EBITA | 7.8 | 6.8 | 30.9 | 36.9 | 46.6 |
| Depreciations | 14.6 | 15.2 | 42.0 | 42.7 | 55.3 |
| EBITDA | 22.4 | 22.1 | 72.9 | 79.7 | 101.9 |
| Items affecting comparability | 0.7 | 2.0 | -1.7 | 4.0 | 7.0 |
| Adjusted EBITDA | 23.1 | 24.0 | 71.1 | 83.7 | 108.8 |
| Adjusted EBITA Rolling 12 months | 41.7 | 54.0 | 41.7 | 54.0 | 53.5 |
| Average capital employed | 965.4 | 916.6 | 965.4 | 916.6 | 983.7 |
| Return on average capital employed (ROCE)% | 4.3% | 5.9% | 4.3% | 5.9% | 5.4% |
Items affecting comparability
| million EUR | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
|---|---|---|---|---|---|
| Severance, integration and restructuring costs | -0.2 | -2.4 | -0.3 | -3.9 | -4.6 |
| Transaction costs | -0.7 | -0.2 | -1.0 | -0.5 | -1.4 |
| Capital gains/losses | 0.2 | 0.6 | 3.1 | 0.4 | -0.6 |
| Other | - | - | -0.1 | - | -0.4 |
| Total | -0.7 | -2.0 | 1.7 | -4.0 | -7.0 |
Adjusted EPS
| million EUR (except average number of shares) | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
|---|---|---|---|---|---|
| Profit attributable to the parent company share holders |
-8.3 | -8.7 | -17.1 | -8.4 | -18.0 |
| Reversing adjustment items before tax | |||||
| Items affecting comparability | 0.7 | 2.0 | -1.7 | 4.0 | 7.0 |
| Depreciations/amortisations attributable to fair value adjustments in business combinations |
3.2 | 3.6 | 9.1 | 10.9 | 13.7 |
| Fair value changes in financial items | - | 0.5 | - | 2.7 | 3.1 |
| 3.9 | 6.1 | 7.4 | 17.6 | 23.7 | |
| Reversing tax impact on adjustment items | |||||
| Items affecting comparability | 0.0 | -0.1 | 1.5 | -0.1 | -1.4 |
| Depreciations/amortisations attributable to fair value adjustments in business combinations |
-0.7 | -0.8 | -2.0 | -2.5 | -3.1 |
| Fair value changes in financial items | - | - | - | - | - |
| -0.7 | -0.9 | -0.5 | -2.6 | -4.5 | |
| Total impact on profit/loss for the period | 3.2 | 5.2 | 6.9 | 15.0 | 19.3 |
| Attributable to non-controlling interests | 0.0 | 0.0 | 0.8 | -0.1 | -0.1 |
| Adjusted profit attributable to the parent company shareholders |
-5.1 | -3.6 | -9.4 | 6.5 | 1.1 |
| Average number of shares | 191 722 290 |
191 722 290 |
191 722 290 |
191 655 108 |
191 672 042 |
| Adjusted earnings per share, basic | -0.03 | -0.02 | -0.05 | 0.08 | 0.01 |
| million EUR | RAW | % | I&C | % | P&C | % | Circular | % | Unallocated | % | Intra-group revenue |
Total net sales |
% |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3 2023 | 81.8 | 113.1 | 93.6 | 13.6 | 0.1 | -35.6 | 266.6 | ||||||
| Acquisitions | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Divestments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Currency | - | - | 0.2 | 0.1% | -0.7 | -0.7% | -0.2 | -1.3% | - | - | 0.2 | -0.5 | -0.2% |
| Organic growth | -2.6 | -3.2% | -5.7 | -5.0% | -0.2 | -0.2% | -1.1 | -7.9% | -0.1 | -100.0% | -4.4 | -14.0 | -5.2% |
| Total increase/ decrease | -2.6 | -3.2% | -5.5 | -4.9% | -0.8 | -0.9% | -1.3 | -9.3% | -0.1 | -100.0% | -4.2 | -14.5 | -5.4% |
| Q3 2024 | 79.2 | 107.6 | 92.8 | 12.3 | 0.0 | -39.8 | 252.1 | ||||||
| million EUR | RAW | % | I&C | % | P&C | % | Circular | % | Unallocated | % | Intra-group revenue |
Total net sales |
% |
| 9M 2023 | 260.8 | 358.5 | 303.1 | 45.6 | 0.2 | -115.5 | 852.6 | ||||||
| Acquisitions | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Divestments | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Currency | - | - | 0.5 | 0.1% | -0.6 | -0.2% | -0.3 | -0.6% | - | - | 0.3 | -0.1 | 0.0% |
| Organic growth | -18.8 | -7.2% | -32.4 | -9.0% | -21.5 | -7.1% | -6.4 | -14.1% | -0.2 | -97.1% | 0.1 | -79.2 | -9.3% |
| Total increase/ decrease | -18.8 | -7.2% | -31.9 | -8.9% | -22.0 | -7.3% | -6.7 | -14.6% | -0.2 | -97.1% | 0.4 | -79.3 | -9.3% |
| 9M 2024 | 242.0 | 326.5 | 281.0 | 38.9 | 0.0 | -115.1 | 773.3 |
Revenue bridge: Change in net sales from corresponding periods in 2023
| million EUR | RAW | % | I&C | % | P&C | % | Circular | % | Unallocated | % | Total adj. EBITDA |
% |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3 2023 | 3.3 | 10.1 | 12.4 | -0.7 | -1.0 | 24.0 | ||||||
| Acquisitions | - | - | - | - | - | - | - | - | - | - | - | - |
| Divestments | - | - | - | - | - | - | - | - | - | - | - | - |
| Currency | - | - | 0.0 | -0.3% | -0.2 | -1.3% | -0.1 | -8.7% | 0.0 | 3.8% | -0.2 | -0.9% |
| Organic growth | -1.5 | -44.3% | -0.2 | -0.8% | 1.5 | 12.2% | -0.7 | -98.2% | 0.1 | 6.1% | -0.7 | -2.9% |
| Total increase/ decrease | -1.5 | -44.3% | -0.2 | -1.1% | 1.3 | 10.9% | -0.8 | -106.9% | 0.1 | 9.8% | -0.9 | -3.8% |
| Q3 2024 | 1.9 | 9.9 | 13.7 | -1.5 | -0.9 | 23.1 | ||||||
| million EUR | RAW | % | I&C | % | P&C | % | Circular | % | Unallocated | % | Total adj. EBITDA |
% |
| 9M 2023 | 17.3 | 30.7 | 40.5 | -1.2 | -3.5 | 83.7 | ||||||
| Acquisitions | - | - | - | - | - | - | - | - | - | - | - | - |
| Divestments | - | - | - | - | - | - | - | - | - | - | - | - |
| Currency | - | - | 0.0 | 0.1% | -0.2 | -0.6% | 0.0 | -1.1% | 0.1 | 2.4% | -0.1 | -0.2% |
| Organic growth | -3.0 | -17.4% | -3.2 | -10.5% | -4.1 | -10.0% | -2.6 | -211.8% | 0.4 | 11.1% | -12.4 | -14.9% |
| Total increase/ decrease | -3.0 | -17.4% | -3.2 | -10.3% | -4.3 | -10.6% | -2.6 | -212.9% | 0.5 | 13.5% | -12.6 | -15.0% |
| 9M 2024 | 14.3 | 27.5 | 36.2 | -3.8 | -3.0 | 71.1 |
EBITDA bridge: Change in adjusted EBITDA from corresponding periods in 2023
Consolidated condensed interim financial statements for the period ended 30 September 2024
Consolidated condensed interim statement of income
| million EUR | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
|---|---|---|---|---|---|
| Revenues | |||||
| Net sales | 252.1 | 266.6 | 773.3 | 852.6 | 1 105.3 |
| Other operating income | - | - | 7.6 | - | 1.5 |
| Total revenue | 252.1 | 266.6 | 780.9 | 852.6 | 1 106.8 |
| Operating expenses | |||||
| Raw materials and consumables | -102.6 | -115.4 | -313.4 | -358.1 | -455.3 |
| Goods for resale | -23.9 | -18.4 | -74.8 | -66.4 | -95.3 |
| Other external costs | -52.5 | -59.6 | -167.1 | -195.5 | -249.9 |
| Personnel cost | -50.4 | -52.0 | -155.2 | -154.5 | -205.2 |
| Depreciation/amortisation and impairment of tangible and intangible assets | -17.9 | -18.3 | -52.3 | -52.0 | -68.4 |
| Share of income from associated companies | -0.6 | 0.3 | -1.0 | 1.4 | 1.3 |
| Capital gain/loss from sale of assets, adjustment purchase price acquired companies and sale of business | 0.2 | 0.5 | 3.5 | 0.2 | -0.6 |
| Total operating expenses | -247.6 | -262.9 | -760.4 | -824.9 | -1 073.4 |
| Operating income (EBIT) | 4.5 | 3.7 | 20.6 | 27.7 | 33.5 |
| Financial income | 0.8 | 1.4 | 3.4 | 4.1 | 5.8 |
| Financial expenses | -13.5 | -12.7 | -38.2 | -35.1 | -48.3 |
| Financial income and expense - net | -12.6 | -11.3 | -34.8 | -31.0 | -42.5 |
| Income before taxes | -8.1 | -7.6 | -14.2 | -3.3 | -9.0 |
| Income tax | -0.7 | -0.7 | -1.5 | -2.8 | -6.6 |
| Profit/loss for the period | -8.8 | -8.3 | -15.7 | -6.1 | -15.6 |
Consolidated condensed interim statement of comprehensive income
| million EUR | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
|---|---|---|---|---|---|
| Profit/loss for the period | -8.8 | -8.3 | -15.7 | -6.1 | -15.6 |
| OTHER COMPREHENSIVE INCOME | |||||
| Items that may later be reclassified to profit or loss | |||||
| Exchange rate differences | -4.6 | -0.3 | -0.6 | 4.7 | 2.3 |
| Cash flow hedges | -3.3 | - | -3.2 | - | -0.1 |
| Items that will not be reclassified to profit or loss | |||||
| Remeasurements of net pension obligations | 0.3 | -1.1 | -0.2 | -2.2 | -1.2 |
| Income tax pertinent to remeasurements of net pension obligations |
-0.0 | 0.2 | 0.0 | 0.4 | 0.3 |
| Other comprehensive income after tax | -7.6 | -1.2 | -4.0 | 2.9 | 1.3 |
| Total comprehensive income for the period | -16.4 | -9.6 | -19.7 | -3.2 | -14.3 |
Profit attributable to
| million EUR (except numbers for EPS) | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
|---|---|---|---|---|---|
| Profit for the period attributable to | |||||
| Parent company shareholders | -8.3 | -8.7 | -17.1 | -8.4 | -18.0 |
| Non-controlling interests | -0.5 | 0.4 | 1.4 | 2.3 | 2.4 |
| Total comprehensive income attributable to | |||||
| Parent company shareholders | -15.9 | -9.7 | -21.2 | -5.7 | -17.2 |
| Non-controlling interests | -0.5 | 0.1 | 1.5 | 2.5 | 2.9 |
| Earnings per share | |||||
| Average number of shares: | 191 722 290 | 191 722 290 | 191 722 290 | 191 655 108 | 191 672 042 |
| Diluted average number of shares | 192 020 170 | 192 444 927 | 192 035 790 | 192 545 143 | 192 424 550 |
| Earnings per share (EPS), basic (EUR) | -0.04 | -0.05 | -0.09 | -0.04 | -0.09 |
| Earnings per share (EPS), diluted (EUR) | -0.04 | -0.05 | -0.09 | -0.04 | -0.09 |
| Earnings per share (EPS), basic (NOK) | -0.50 | -0.51 | -1.03 | -0.50 | -1.08 |
| Earnings per share (EPS), diluted (NOK) | -0.50 | -0.51 | -1.03 | -0.49 | -1.08 |
EPS in NOK is calculated using average rates for the period
Consolidated condensed interim statements of financial position
| million EUR | 30 Sep 2024 | 30 Sep 2023 | 31 Dec 2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | |||
| Goodwill | 241.9 | 245.0 | 244.5 |
| Other intangible assets | 133.8 | 144.1 | 142.8 |
| Total intangible assets | 375.6 | 389.1 | 387.3 |
| Tangible assets | |||
| Land and buildings | 233.7 | 239.4 | 244.6 |
| Plant and machinery | 175.2 | 174.1 | 182.9 |
| Equipment, tools, fixtures and fittings | 21.5 | 25.3 | 22.0 |
| Construction in progress and advance payments | 41.9 | 38.0 | 35.9 |
| Total tangible assets | 472.3 | 476.9 | 485.3 |
| Financial assets | |||
| Shares in associates | 10.2 | 12.3 | 11.4 |
| Other financial non-current assets | 3.3 | 16.6 | 3.4 |
| Total financial assets | 13.5 | 28.8 | 14.8 |
| Deferred tax assets | 13.1 | 13.0 | 9.8 |
| Total non-current assets | 874.5 | 907.9 | 897.2 |
| million EUR | 30 Sep 2024 | 30 Sep 2023 | 31 Dec 2023 | |
|---|---|---|---|---|
| Current assets | ||||
| Inventory | 124.3 | 147.5 | 132.6 | |
| Other current assets | ||||
| Accounts receivable | 117.0 | 166.2 | 129.3 | |
| Current tax assets | 1.9 | 2.0 | 1.2 | |
| Other current receivables | 15.0 | 16.5 | 11.8 | |
| Prepaid expenses and accrued income | 22.2 | 19.5 | 14.2 | |
| Other financial assets | 2.0 | 1.8 | 3.6 | |
| Cash and cash equivalents | 79.2 | 43.1 | 63.6 | |
| Total other current assets | 237.2 | 249.1 | 223.6 | |
| Total current assets | 361.6 | 396.6 | 356.2 | |
| TOTAL ASSETS | 1 236.1 |
1 304.5 | 1 253.4 |
Consolidated condensed interim statements of financial position cont.
| million EUR | 30 Sep 2024 | 30 Sep 2023 | 31 Dec 2023 | |
|---|---|---|---|---|
| EQUITY | ||||
| Share capital | 18.3 | 18.3 | 18.3 | |
| Additional paid-in capital | 323.0 | 323.2 | 323.0 | |
| Reserves | -19.0 | -13.2 | -14.5 | |
| Accumulated profit (including net profit/loss for the period) | 59.7 | 86.6 | 76.5 | |
| Equity attributable to parent company shareholders | 382.0 | 414.8 | 403.2 | |
| Non-controlling interests | 11.8 | 13.0 | 12.5 | |
| TOTAL EQUITY | 393.8 | 427.8 | 415.7 | |
| LIABILITIES | ||||
| Non-current liabilities | ||||
| Pensions and similar obligations to employees | 1.9 | 2.4 | 2.3 | |
| Provisions | 0.2 | 3.1 | 2.5 | |
| Deferred tax liability | 52.2 | 55.2 | 53.3 | |
| Non-current bond loan | 247.8 | 247.7 | 247.9 | |
| Other non-current interest-bearing liabilities | 318.0 | 311.8 | 326.3 | |
| Other financial non-current liabilities | 0.4 | 0.7 | 0.4 | |
| Total non-current liabilities | 620.6 | 620.9 | 632.9 |
| million EUR | 30 Sep 2024 | 30 Sep 2023 | 31 Dec 2023 | |
|---|---|---|---|---|
| Current liabilities | ||||
| Other current interest-bearing liabilities | 37.8 | 45.8 | 36.6 | |
| Other financial liabilities | 3.8 | 1.6 | 3.2 | |
| Accounts payable | 89.3 | 97.7 | 81.6 | |
| Current tax liabilities | 6.4 | 16.5 | 8.4 | |
| Other current liabilities | 24.2 | 19.8 | 14.6 | |
| Accrued expenses and deferred income | 60.0 | 74.4 | 60.4 | |
| Total current liabilities | 221.7 | 255.8 | 204.8 | |
| TOTAL LIABILITIES | 842.3 | 876.7 | 837.7 | |
| TOTAL EQUITY AND LIABILITIES | 1 236.1 |
1 304.5 | 1 253.4 |
| The board of directors and CEO of BEWI ASA | ||||
|---|---|---|---|---|
| Anne-Lise Aukner | Rik Dobbelaere | Andreas Akselsen | ||
| Director | Director | Director | ||
| Pernille Skarstein Christensen | Christian Bekken | |||
| Director | Trondheim, 5 November 2024 CEO |
Consolidated condensed interim statements of changes in equity
| million EUR | 1 Jan–30 Sep 2024 | 1 Jan–30 Sep 2023 | 1 Jan–31 Dec 2023 |
|---|---|---|---|
| OPENING BALANCE | 415.7 | 429.8 | 429.8 |
| Net profit for the period | -15.7 | -6.1 | -15.6 |
| Other comprehensive income | -4.0 | 2.9 | 1.3 |
| Total comprehensive income | -19.7 | -3.2 | -14.3 |
| New share issue, net of transaction costs | - | 0.8 | 0.8 |
| Dividend | -0.9 | -0.6 | -1.3 |
| Share-based payments | - | 0.2 | 0.2 |
| Acquisition non-controlling interest | -1.3 | - | -0.4 |
| Acquisition of business with non-controlling interest | - | 0.9 | 0.9 |
| Total transactions with shareholders | -2.2 | 1.2 | 0.2 |
| CLOSING BALANCE | 393.8 | 427.8 | 415.7 |
Consolidated condensed interim statements of cash flows
| million EUR | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
|---|---|---|---|---|---|
| Operating income (EBIT) | 4.5 | 3.7 | 20.6 | 27.7 | 33.5 |
| Adjustment for non-cash items, etc. | 17.9 | 22.1 | 48.3 | 55.2 | 71.6 |
| Net financial items | -11.5 | -10.7 | -30.8 | -12.1 | -22.8 |
| Income tax paid | -0.2 | -4.4 | -7.1 | -13.8 | -23.8 |
| Cash flow from operating activities before changes in working capital | 10.7 | 10.7 | 30.9 | 56.9 | 58.5 |
| Increase/decrease in inventories | 1.5 | -1.5 | 6.9 | 14.0 | 28.9 |
| Increase/decrease in operating receivables | 49.9 | -2.8 | -0.7 | -20.4 | 24.9 |
| Increase/decrease in operating liabilities | -13.0 | 7.8 | 14.7 | -2.9 | -35.8 |
| Cash flow from changes in working capital | 38.3 | 3.5 | 20.9 | -9.2 | 18.0 |
| Cash flow from operating activities | 49.1 | 14.2 | 51.8 | 47.7 | 76.5 |
| Acquisitions non-current assets | -6.9 | -12.6 | -23.4 | -40.1 | -51.7 |
| Divestment non-current assets | 0.2 | 0.2 | 37.8 | 18.4 | 48.7 |
| Business acquisitions/financial investments | -0.9 | 0.1 | -2.6 | -0.1 | 0.0 |
| Cash flow from investing activities | -7.6 | -12.4 | 11.8 | -21.7 | -3.1 |
| Proceeds from borrowings | 0.4 | 5.3 | 0.5 | 76.0 | 64.9 |
| Repayment of borrowings and lease liabilities | -29.7 | -6.8 | -47.6 | -105.6 | -121.1 |
| New share issue, net of transaction costs | - | - | - | 0.8 | 0.8 |
| Dividend to non-controlling interest | - | -0.6 | -0.7 | -0.6 | -1.3 |
| Cash flow from financing activities | -29.3 | -2.0 | -47.8 | -29.4 | -56.7 |
| Cash flow for the period | 12.2 | -0.1 | 15.8 | -3.5 | 16.7 |
| Opening cash and cash equivalents | 67.2 | 42.6 | 63.6 | 47.5 | 47.5 |
| Exchange difference in cash | -0.2 | 0.7 | -0.2 | -1.0 | -0.6 |
| Closing cash and cash equivalents | 79.2 | 43.1 | 79.2 | 43.1 | 63.6 |
Notes to the financial statements
Note 01 General information
The company and the group
BEWI ASA, with corporate registration number 925 437 948, is a holding company registered in Norway, Trondheim at the address Dyre Halses gate 1a, 7042 Trondheim, Norway.
Amounts are given in EUR million unless otherwise indicated.
Note 02 Accounting policies
The consolidated accounts for the BEWI ASA group ("BEWI ASA") have been prepared in accordance with IFRS® Accounting Standards and interpretations from the IFRS Interpretations Committee (IFRS IC), as adopted by the EU. The accounting policies comply with those described in BEWI ASA's Annual Report for 2023. This interim report has been prepared in accordance with IAS 34 Interim financial reporting.
Note 03 Related party transactions
Christian Bekken, CEO of BEWI ASA, is together with other members of the Bekken family major shareholders of BEWI ASA through Bekken Invest AS and BEWI Invest AS. Companies owned by the Bekken family are related parties to BEWI ASA.
Other related parties are BEWI's associated companies, for example the two 34 per cent owned companies Hirsch France SAS and Hirsch Porozell GmbH. Transactions with the related parties' companies are presented in the tables below.
During the second quarter of 2024, BEWI sold properties to KMC Properties ASA, now wholly owned by Logistea AB (with BEWI Invest AS as a major shareholder), in sale and leaseback transactions for a total value of EUR 25.0 million, giving rise to a capital gain of EUR 2.2 million. During the first half of the year, properties for a total value of EUR 38.3 million were sold to KMC Properties ASA, now wholly owned by Logistea AB, giving rise to a capital gain of EUR 4.6 million.
Transactions impacting the income statement
| million EUR | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
|---|---|---|---|---|---|
| Sale of goods to | |||||
| Companies with Bekken as significant shareholder | 0.1 | 0.0 | 0.1 | 0.0 | 0.0 |
| HIRSCH France SAS | 2.4 | 4.6 | 11.0 | 16.7 | 21.9 |
| HIRSCH Porozell GmbH | 5.4 | 6.8 | 16.9 | 24.1 | 29.0 |
| BEWI EPS ehf | - | 0.0 | - | 0.2 | 0.7 |
| Energijägarna Dorocell AB | 0.2 | - | 0.7 | - | 1.1 |
| Total: | 8.1 | 11.4 | 28.6 | 41.0 | 52.7 |
| Other income from | |||||
| Companies with Bekken as significant shareholder | 0.0 | 0.1 | 0.0 | 0.2 | 0.3 |
| Total: | 0.0 | 0.1 | 0.0 | 0.2 | 0.3 |
| Purchase of goods from | |||||
| Remondis Technology Spólka z o.o. | 0.9 | 1.0 | 3.2 | 3.5 | 4.4 |
| Total: | 0.9 | 1.0 | 3.2 | 3.5 | 4.4 |
| million EUR | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
|---|---|---|---|---|---|
| Rental expenses to | |||||
| Companies with Bekken as significant shareholder | 6.5 | 5.1 | 17.9 | 14.1 | 18.6 |
| Total: | 6.5 | 5.1 | 17.9 | 14.1 | 18.6 |
| Other external costs to | |||||
| Companies with Bekken as significant shareholder | 0.0 | 0.0 | 0.1 | 0.1 | 0.2 |
| Total: | 0.0 | 0.0 | 0.1 | 0.1 | 0.2 |
Transactions impacting the balance sheet
| million EUR | 30 Sep 2024 | 30 Sep 2023 | 31 Dec 2023 |
|---|---|---|---|
| Non-current receivables | |||
| Companies with Bekken as significant shareholder | 0.0 | 0.0 | 0.0 |
| Total: | 0.0 | 0.0 | 0.0 |
| Current receivables | |||
| Companies with Bekken as significant shareholder | - | 2.1 | 0.1 |
| HIRSCH Porozell GmbH | 0.1 | 0.1 | 0.1 |
| Total: | 0.1 | 2.2 | 0.2 |
| Current liabilities | |||
| Companies with Bekken as significant shareholder | 0.0 | 0.5 | 0.0 |
| Remondis Technology Spólka z o.o. | 0.4 | - | - |
| Total: | 0.4 | 0.5 | 0.0 |
Note 04 Segment information
Operating segments are reported in a manner that corresponds with the internal reporting submitted to the chief operating decision-maker. The executive committee constitutes the chief operating decision maker for the BEWI group and takes strategic decisions in addition to evaluating the group's financial position and earnings. Group management has determined the operating segments based on the information that is reviewed by the executive committee and used for the purposes of allocating
resources and assessing performance. The executive committee assesses the operations based on four operating segments: RAW, Insulation & Construction, Packaging & Components and Circular. Sales between segments take place on market terms. Each segment sells products that are similar in nature. External revenue for the different segments also represents the group's disaggregation of revenue.
| RAW | Insulation & Construction | Packaging & Components | Circular | Unallocated | Elimination | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| million EUR | Q3 2024 | Q3 2023 | Q3 2024 | Q3 2023 | Q3 2024 | Q3 2023 | Q3 2024 | Q3 2023 | Q3 2024 | Q3 2023 | Q3 2024 | Q3 2023 | Q3 2024 | Q3 2023 |
| Internal net sales | 34.7 | 31.3 | 0.4 | 0.8 | 0.4 | 0.7 | 4.3 | 2.8 | 0.0 | 0.0 | -39.8 | -35.6 | 0.0 | 0.0 |
| External net sales | 44.5 | 50.5 | 107.2 | 112.3 | 92.4 | 93.0 | 8.0 | 10.8 | 0.0 | 0.1 | 252.1 | 266.6 | ||
| Net sales | 79.2 | 81.8 | 107.6 | 113.1 | 92.8 | 93.6 | 12.3 | 13.6 | 0.0 | 0.1 | -39.8 | -35.6 | 252.1 | 266.6 |
| Adj. EBITDA | 1.9 | 3.3 | 9.9 | 10.1 | 13.7 | 12.4 | -1.5 | -0.7 | -0.9 | -1.0 | 23.1 | 24.0 | ||
| EBITDA | 1.9 | 3.3 | 10.0 | 8.1 | 13.5 | 11.8 | -1.5 | -0.7 | -1.4 | -0.4 | 22.4 | 22.1 | ||
| EBITA | 0.8 | 2.0 | 4.0 | 1.2 | 7.0 | 5.6 | -2.3 | -1.3 | -1.6 | -0.6 | 7.8 | 6.8 | ||
| EBIT | 0.7 | 1.9 | 2.7 | -0.2 | 5.9 | 4.4 | -2.6 | -1.6 | -2.2 | -0.8 | 4.5 | 3.7 | ||
| Net financial items | -12.6 | -11.4 | ||||||||||||
| Income before tax | -8.1 | -7.6 |
| RAW | Insulation & Construction | Packaging & Components | Circular | Unallocated | Elimination | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| million EUR | 9M 2024 | 9M 2023 | 9M 2024 | 9M 2023 | 9M 2024 | 9M 2023 | 9M 2024 | 9M 2023 | 9M 2024 | 9M 2023 | 9M 2024 | 9M 2023 | 9M 2024 | 9M 2023 |
| Internal net sales | 104.0 | 102.3 | 1.6 | 1.7 | 1.5 | 2.5 | 8.0 | 8.9 | 0.0 | 0.0 | -115.1 | -115.5 | 0.0 | 0.0 |
| External net sales | 138.0 | 158.4 | 324.9 | 356.7 | 279.5 | 300.5 | 30.8 | 36.7 | 0.0 | 0.2 | 773.3 | 852.6 | ||
| Net sales | 242.0 | 260.8 | 326.5 | 358.5 | 281.0 | 303.1 | 38.9 | 45.6 | 0.0 | 0.2 | -115.1 | -115.5 | 773.3 | 852.6 |
| Adj. EBITDA | 14.3 | 17.3 | 27.5 | 30.7 | 36.2 | 40.5 | -3.8 | -1.2 | -3.0 | -3.5 | 71.1 | 83.7 | ||
| EBITDA | 14.3 | 17.3 | 28.2 | 27.0 | 39.2 | 39.8 | -4.1 | -1.2 | -4.7 | -3.2 | 72.9 | 79.7 | ||
| EBITA | 10.7 | 13.4 | 11.7 | 7.6 | 20.5 | 22.5 | -6.5 | -3.0 | -5.4 | -3.6 | 30.9 | 36.9 | ||
| EBIT | 10.5 | 13.1 | 7.6 | 3.4 | 17.1 | 19.1 | -7.2 | -3.6 | -7.4 | -4.4 | 20.6 | 27.7 | ||
| Net financial items | -34.8 | -31.0 | ||||||||||||
| Income before tax | -14.2 | -3.3 |
| RAW | Insulation & Construction | Packaging & Components | Circular | Unallocated | Elimination | Total | |
|---|---|---|---|---|---|---|---|
| million EUR | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 |
| Internal net sales | 129.0 | 2.4 | 3.1 | 11.7 | 0.0 | -146.3 | 0.0 |
| External net sales | 209.1 | 456.0 | 394.0 | 45.9 | 0.3 | 1 105.3 | |
| Net sales | 338.1 | 458.4 | 397.1 | 57.7 0.3 -146.3 |
1 105.3 | ||
| Adj. EBITDA | 24.1 | 40.6 | 52.0 | -3.2 | -4.7 | 108.8 | |
| EBITDA | 23.7 | 35.7 | 50.7 | -3.4 | -4.8 | 101.9 | |
| EBITA | 18.7 | 11.7 | 27.6 | -6.1 | -5.4 | 46.6 | |
| EBIT | 18.4 | 5.7 | 23.1 | -7.0 | -6.6 | 33.5 | |
| Net financial items | -42.5 | ||||||
| Income before tax | -9.0 |
External revenue by country (buying company's geography)
| million EUR | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
|---|---|---|---|---|---|
| Norway | 51.0 | 53.5 | 147.3 | 158.8 | 211.7 |
| Germany | 28.3 | 30.2 | 93.5 | 102.4 | 132.3 |
| Netherlands | 27.3 | 27.9 | 87.9 | 98.8 | 127.0 |
| UK | 24.1 | 22.3 | 69.3 | 66.0 | 85.3 |
| Sweden | 17.3 | 20.9 | 58.3 | 69.0 | 89.8 |
| Denmark | 17.1 | 16.8 | 54.4 | 59.3 | 76.0 |
| Portugal & Spain | 14.7 | 15.3 | 47.6 | 51.3 | 65.0 |
| Poland | 15.0 | 15.1 | 40.9 | 38.8 | 52.2 |
| France | 7.8 | 10.6 | 31.5 | 37.9 | 49.0 |
| Belgium | 7.4 | 7.3 | 23.6 | 27.2 | 35.1 |
| Finland | 11.9 | 13.1 | 32.3 | 35.8 | 44.9 |
| Iceland | 5.9 | 4.4 | 16.4 | 16.9 | 24.8 |
| Baltics | 7.4 | 10.3 | 18.7 | 26.9 | 30.8 |
| Czech Republic | 2.9 | 2.0 | 7.7 | 7.7 | 10.5 |
| Romania | 0.8 | 1.9 | 5.3 | 5.5 | 7.6 |
| Slovakia | 1.2 | 2.3 | 5.6 | 7.3 | 9.8 |
| Italy | 0.5 | 0.9 | 3.0 | 4.3 | 5.0 |
| Austria | 1.8 | 0.7 | 5.8 | 3.3 | 4.2 |
| Faroe Islands | 2.0 | 0.6 | 3.6 | 3.1 | 5.0 |
| Switzerland | 1.3 | 1.3 | 3.5 | 3.8 | 4.8 |
| Other | 6.4 | 9.0 | 17.0 | 28.6 | 34.7 |
| Total | 252.1 | 266.6 | 773.3 | 852.6 | 1 105.3 |
Note 05 Depreciation/amortisation and impairment of tangible and intangible fixed assets
| million EUR | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
|---|---|---|---|---|---|
| Attributable to operations | -8.3 | -8.3 | -25.1 | -25.2 | -33.7 |
| Attributable to IFRS 16 | -6.5 | -6.5 | -17.3 | -16.0 | -21.1 |
| Attributable to fair value adjustments in business | |||||
| combinations | -3.2 | -3.6 | -10.0 | -10.8 | -13.7 |
| Total | -17.9 | -18.3 | -52.3 | -52.0 | -68.4 |
Note 06 The group's borrowings
| million EUR | 30 Sep 2024 | 30 Sep 2023 | 31 Dec 2023 |
|---|---|---|---|
| Non-current liabilities | |||
| Bond loan | 247.8 | 247.7 | 247.9 |
| Liabilities to credit institutions | 95.2 | 130.0 | 125.0 |
| Liabilities leases | 222.8 | 181.8 | 201.3 |
| Other non-current liabilities | 0.4 | 0.7 | 0.4 |
| Total | 566.3 | 560.2 | 574.6 |
| Current liabilities | |||
| Liabilities to credit institutions | 5.6 | 5.4 | 7.4 |
| Liabilities leases | 28.7 | 22.2 | 24.8 |
| Overdraft | 3.4 | 18.2 | 4.4 |
| Total | 37.8 | 45.8 | 36.6 |
| Total liabilities | 604.1 | 606.0 | 611.2 |
| Cash and cash equivalents | 79.2 | 43.1 | 63.6 |
| Net debt including IFRS 16 impact | 524.9 | 562.9 | 547.6 |
| Subtracting liabilities capitalised in accordance with IFRS 16 | |||
| Non-current liabilities leases | 213.5 | 174.7 | 193.0 |
| Current liabilities leases | 26.2 | 21.1 | 23.5 |
| Total | 239.7 | 195.8 | 216.6 |
| Net debt excluding IFRS 16 impact | 285.2 | 367.1 | 331.1 |
Net debt is also presented excluding the effect of IFRS 16, since the impact of IFRS 16 on net debt and EBITDA is excluded in the relevant covenant calculations.
The group's loan structure
The base funding of the group consists of a bond loan, a revolving credit facility (RCF) and a receivable purchase agreement (RPA). The group also has other liabilities, such as local liabilities to credit institutions and overdraft facilities, in some of its subsidiaries as well as liabilities for lease contracts.
The bond is unsecured and linked to a sustainability framework, with maturity on 3 September 2026, with the possibility for BEWI to unilaterally decide on early redemption after 3 March 2025 of 50 per cent of the bond outstanding at that date. The main term for the bond outstanding during the year is presented in the table below.
| Issued amount | Frame | Amount outstanding | Date of issuance | Maturity | |
|---|---|---|---|---|---|
| EUR 250 million | EUR 250 million | EUR 250 million | 3 September 2021 | 3 September 2026 |
The bond is recognised under the effective interest method at amortised cost after deductions for transaction costs. Interest terms, as well as nominal interest rates and average interest rates recognised during the quarter are presented in the table below.
| Bond loans | Interest terms | Nominal interest 1 Jul-30 Sep 2024 |
Nominal interest 1 Jan-30 Sep 2024 |
Average interest 1 Jul-30 Sep 2024 |
Average interest 1 Jan-30 Sep 2024 |
|---|---|---|---|---|---|
| EUR 250 million | Euribor 3m + 3.15% | 6.64-6.94% | 6.64-7.11% | 7.45% | 7.65% |
The RCF is granted by two banks. As reported in the report for the first half of 2024, BEWI agreed with the two banks to reduce the limit from EUR 150 million to EUR 125 million, effective from the end of the fourth quarter of 2024. The downward adjustment was a result of evaluating the need for credit against the cost of maintaining the current credit levels. As of 30 September 2024, the revolving credit facility was utilised in the amount of EUR 92.7 million.
In September 2024, BEWI entered into a receivables purchase agreement (RPA) with one of the two banks granting the RCF. The RPA has more attractive margins than the RCF and provides a more flexible financing structure for the group's working
capital. The RPA is an uncommitted facility with a frame of EUR 75 million. The utilised portion of the RPA is subject to an interest charge, which is recognised as a financial expense in the statement of income.
The available credit under the RCF, is reduced by the amount utilized under the RPA. On 30 September 2024, EUR 40.9 million was utilized under the RPA facility whereby available not utilized credit under RCF amounted to EUR 16.4 million.
Pledged assets
In total, the group has pledged asset amounting to EUR 25.9 million, securing interest bearing liabilities of EUR 11.6 million in companies as described above. The bond loan and the revolving credit facility are unsecured.
Contingent liabilities
A number of parent company guarantees have been issued towards suppliers of subsidiaries. These parent company guarantees have prior years been reported under contingent liabilities. The obligations of the group to these suppliers can however never exceed the liabilities already recognised in the consolidated balance sheet. As a consequence, parent company guarantees to suppliers are no longer reported as contingent liabilities.
Note 07 Fair value and financial instruments
| million EUR | Level 1 | Level 2 | Level 3 | Total | Carrying amount |
|---|---|---|---|---|---|
| Financial assets measured at fair value through profit and loss |
|||||
| Participation in other companies | - | - | 0.5 | 0.5 | 0.5 |
| Derivative asset | - | 2.0 | - | 2.0 | 2.0 |
| Total | - | 2.0 | 0.5 | 2.5 | 2.5 |
| Financial liabilities measured at fair value through profit and loss |
|||||
| Derivative liabilities | - | 0.5 | - | 0.5 | 0.5 |
| Other financial non-current liabilities | - | - | 0.4 | 0.4 | 0.4 |
| Total | - | 0.5 | 0.4 | 0.9 | 0.9 |
| Financial liabilities measured at fair value through other comprehensive income |
|||||
| Derivative liabilities | - | 3.3 | - | 3.3 | 3.3 |
| Total | - | 3.3 | - | 3.3 | 3.3 |
| Financial liabilities measured at amortised cost | |||||
| Bond loan | 250.0 | - | - | 250.0 | 247.8 |
| Total | 250.0 | - | - | 250.0 | 247.8 |
Financial instruments are initially measured at fair value, adjusted for transaction costs, except for financial instruments subsequently measured at fair value through profit and loss. For those instruments, transactions costs are recognized immediately in profit and loss. The group is classifying its financial instruments based on the business model applied for groups of financial instruments within the group and whether separate financial instruments meet the criteria for cash flows that are solely being payments of principal and interest on the principal amount outstanding. The group is classifying its financial instruments into the group's financial assets and financial liabilities measured at fair value through profit and loss and financial assets and financial liabilities measured at amortised cost. However, fair value changes in financial instruments used for cash flow hedges are recognised in other comprehensive income. The table above shows the fair value of financial instruments measured at fair value, or where fair value differs from the carrying amount because the item is recognized at amortised cost (the bond loans). The carrying amount of the groups' other financial assets and liabilities is considered to constitute a good approximation of the fair value since they either carry floating interest rates or are of a non-current nature.
| Level 3 – Changes during the period (EUR million) | Participation in other companies |
Other financial non-current liabilities |
|---|---|---|
| As of 31 December 2023 | 0.5 | 0.4 |
| Fair value adjustment through profit and loss | 0.0 | 0.0 |
| As of 30 September 2024 | 0.5 | 0.4 |
• Level 1 – listed prices (unadjusted) on active markets for identical assets and liabilities.
• Level 2 – Other observable data for the asset or liability are listed prices included in Level 1, either directly (as price) or indirectly (derived from price).
• Level 3 – Data for the asset or liability that is not based on observable market data.
Note 08 Net financial items
| million EUR | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 |
|---|---|---|---|---|---|
| Interest revenue and other financial income | 0.8 | 1.4 | 3.4 | 4.1 | 5.8 |
| Exchange rate differences, net of fair value changes in derivatives |
- | - | - | - | - |
| Total financial income | 0.8 | 1.4 | 3.4 | 4.1 | 5.8 |
| Interest expenses and other financing costs | -8.2 | -8.8 | -26.0 | -24.4 | -33.8 |
| IFRS 16 interest expenses | -4.5 | -2.7 | -11.7 | -7.9 | -10.8 |
| Fair value adjustments shares and participations | - | -0.5 | - | -2.7 | -3.1 |
| Exchange rate differences, net of fair value derivatives | -0.7 | -0.7 | -0.5 | -0.0 | -0.6 |
| Total financial expenses | -13.5 | -12.7 | -38.2 | -35.1 | -48.3 |
| Net financial items | -12.6 | -11.3 | -34.8 | -31.0 | -42.5 |
Note 9 Shares in associates
BEWI has four interests in Shares in associates: HIRSCH Porozell GmbH, HIRSCH France SAS, Energijägarna & Dorocell AB (E&D AB) and Remondis Technology Spólka z o.o.
The table below presents key aggregated financial data as reflected in BEWI's consolidated accounts.
| million EUR (except percentages and sites) | Total |
|---|---|
| Number of production sites | 13 |
| Book value as of 30 September 2024 | 10.2 |
| Key financials YTD 2024 | |
| Net Sales YTD 2024 | 122.3 |
| EBITDA YTD 2024 | 4.0 |
| Of which owned share of EBITDA | 1.3 |
| EBIT | -3.2 |
| Net Profit | -2.7 |
| Consolidated into BEWI's EBITDA, share of Net profit | -1.0 |
| BEWI's share of EBITDA minus impact on consolidated EBITDA | 2.3 |
| Net debt | 22.2 |
| Of which owned share Net Debt | 7.5 |
Note 10 Earnings per share
| Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | 2023 | |
|---|---|---|---|---|---|
| Profit for the period attributable to parent company shareholders (million EUR) |
-8.3 | -8.7 | -17.1 | -8.4 | -18.0 |
| Average number of shares | 191 722 290 |
191 722 290 |
191 722 290 |
191 655 108 |
191 672 042 |
| Effect of options to employees | 297 880 |
722 637 |
313 500 |
890 035 |
752 508 |
| Diluted average number of shares | 192 020 170 |
192 444 927 |
192 035 790 |
192 545 143 |
192 424 550 |
| Earnings per share (EPS), basic (EUR) | -0.04 | -0.05 | -0.09 | -0.04 | -0.09 |
| Earnings per share (EPS), diluted (EUR) | -0.04 | -0.05 | -0.09 | -0.04 | -0.09 |
| Earnings per share (EPS), basic (NOK) | -0.50 | -0.51 | -1.03 | -0.50 | -1.08 |
| Earnings per share (EPS), diluted (NOK) | -0.50 | -0.51 | -1.03 | -0.49 | -1.08 |
EPS in NOK is calculated using the average rate in the period
The number shares outstanding (191 722 290) are unchanged compared to 31 December 2023. Earnings per share is calculated by dividing profit attributable to parent company shareholders by the weighted number of ordinary shares during the period.
Note 11 Five-year summary
| million EUR (except percentage) | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| Net sales | 1 105.3 | 1 050.4 |
748.2 | 462.6 | 429.9 |
| Operating income (EBIT) | 33.5 | 68.0 | 67.8 | 39.5 | 20.3 |
| EBITDA | 101.9 | 115.2 | 105.5 | 70.0 | 48.0 |
| EBITDA margin (%) | 9.2% | 11.0% | 14.1% | 15.1% | 11.1% |
| Adjusted EBITDA | 108.8 | 133.6 | 109.0 | 65.0 | 51.8 |
| Adj. EBITDA margin (%) | 9.8% | 12.7% | 14.6% | 14.0% | 12.1% |
| Items affecting comparability | -7.0 | -18.3 | -3.4 | 5.0 | -3.9 |
| EBITA | 46.6 | 77.7 | 75.4 | 45.8 | 27.5 |
| EBITA margin (%) | 4.2% | 7.4% | 10.1% | 9.9% | 6.4% |
| Adjusted EBITA | 53.5 | 96.1 | 78.8 | 40.8 | 31.4 |
| Adj. EBITA margin (%) | 4.8% | 9.1% | 10.5% | 8.8% | 7.3% |
| Net profit/loss for the period | -15.6 | 35.4 | 34.4 | 30.0 | 5.6 |
| Cash flow from operating activities | 76.5 | 40.9 | 67.4 | 33.2 | 35.9 |
| Capital Expenditure (CAPEX) | -51.7 | -43.7 | -34.7 | -26.6 | -14.3 |
| Average capital employed | 983.7 | 629.1 | 409.6 | 322.0 | 301.1 |
| Return on average capital employed (ROCE) % | 5.4% | 15.3% | 19.2% | 12.6% | 10.4% |
As from 2019, the group applies IFRS 16. The impact from IFRS 16 in 2019 was EUR 7.5 million on EBITDA, EUR -5.4 million on depreciations, EUR -2.5 million on financial expenses, EUR 0.1 million on income tax and EUR -0.3 million on net profit.
1 without IFRS 16 effects
Note 12 Quarterly data
| million EUR (except percentage) | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 |
|---|---|---|---|---|---|---|---|---|---|
| Net sales | 252.1 | 277.2 | 244.0 | 252.7 | 266.6 | 289.6 | 296.4 | 257.7 | 267.5 |
| Operating income (EBIT) | 4.5 | 13.5 | 2.6 | 5.8 | 3.7 | 14.1 | 9.8 | -10.7 | 21.1 |
| EBITDA | 22.4 | 30.9 | 19.6 | 22.2 | 22.1 | 30.7 | 26.9 | 4.0 | 32.9 |
| EBITDA margin (%) | 8.9% | 11.1% | 8.0% | 8.8% | 8.3% | 10.6% | 9.1% | 1.5% | 12.3% |
| Adjusted EBITDA | 23.1 | 29.4 | 18.6 | 25.1 | 24.0 | 31.5 | 28.2 | 24.4 | 34.4 |
| Adj. EBITDA margin (%) | 9.2% | 10.6% | 7.6% | 9.9% | 9.0% | 10.9% | 9.5% | 8.8% | 12.9% |
| Items affecting comparability | -0.7 | 1.5 | 1.0 | -2.9 | -2.0 | -0.8 | -1.3 | -20.4 | -1.5 |
| EBITA | 7.8 | 17.2 | 5.9 | 9.6 | 6.8 | 17.5 | 12.6 | -7.3 | 23.2 |
| EBITA margin (%) | 3.1% | 6.2% | 2.4% | 3.8% | 2.6% | 6.0% | 4.2% | -2.7% | 8.7% |
| Adjusted EBITA | 8.5 | 15.7 | 4.9 | 12.6 | 8.8 | 18.3 | 13.9 | 13.0 | 24.7 |
| Adj. EBITA margin (%) | 3.4% | 5.7% | 2.0% | 5.0% | 3.3% | 6.3% | 4.7% | 4.7% | 9.2% |
| Net profit/loss for the period | -8.8 | 1.4 | -8.3 | -9.5 | -8.3 | 3.0 | -0.7 | -7.8 | 10.0 |
| Cash flow from operating activities | 49.1 | 23.0 | 20.2 | 28.8 | 14.2 | 26.0 | 7.4 | 13.2 | 16.8 |
| Capital Expenditure (CAPEX) | -6.9 | -7.8 | -8.7 | -11.6 | -12.6 | -16.2 | -11.3 | -20.4 | -8.9 |
| Average capital employed | 965.4 | 980.7 | 984.3 | 983.7 | 916.6 | 836.7 | 735.2 | 629.1 | 520.6 |
| Return on average capital employed (ROCE) % | 4.3% | 4.3% | 4.5% | 5.4% | 5.9% | 8.4% | 11.4% | 15.3% | 19.3% |
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