BEWI has achieved another record quarter according to its Q2 and first half 2022 results presented today, with sales up 40% compared to the same quarter last year. Solid demand, strong price management and accredited acquisitions are the key points behind this positive result, according to the Norwegian leader in packaging, components and insulation solutions.
According to results reported today, in the second quarter of 2022, BEWI recorded net sales of €277.0 million compared to €198.1 million in the same quarter last year, an increase of 40 percent. 19 percent of that growth was organic, something the company explains by higher selling prices. Adjusted EBITDA reached €40.3 million, up from €31.6 million in the second quarter of 2021. Turning to the half-year results, in the first half of 2022, the Frøya company had revenues of €507.2 million, compared with €347.0 million in the same period last year, representing a growth of 46 percent, of which 27 percent was organic.
In the announcement, the CEO of BEWI ASA appreciates the good results, while also noting that the market is going through a turbulent time. "We are pleased to deliver another record quarter for BEWI. The results are backed by continued solid demand from our key markets, good operational performance, and strong price management", said Christian Bekken. "Although market demand has remained solid, the business landscape has been challenging and to a certain degree unpredictable this year. Despite this, our organisation has managed to manoeuvre impressively well, delivering the strong results", he added.
In this "challenging business landscape" referred to by Christian Bekken, raw materials are a factor to be taken into account. According to BEWI's earnings report presented today, styrene prices continued to increase in Q2, with stable demand for expanded polystyrene (EPS) raw material resulting in a continued strong GAP. The company notes that due to solid price management, all business segments contributed to organic growth.
"Challenges and uncertainty related to the global supply chain shortages, high energy prices, and concerns around inflation and increasing interest rates are closely monitored and managed in the daily operations", the company says in the announcement and adds that, so far, "these factors have not had any material impact on demand". Going forward, and based on what the Norwegian company describes as "strong underlying fundamentals", BEWI expects long-term stable demand in its key markets, including food packaging, insulation, HVAC (heating, ventilation, air-condition) and automotive components.
As mentioned at the beginning, one of the cornerstones of this new record quarter for BEWI in Q2 2022 was the company's accredited acquisitions. In the first half of 2022, the Frøya company completed the acquisition of Norwegian paper packaging company Trondhjems Eskefabrikk and recycling platform company Berga Recycling. In addition, it also increased its ownership of the UK-based insulation and packaging company Jablite from 49 percent to 100 percent.
Also, last February the company announced the acquisition of Lithuanian packaging and insulation company BalPol. Then, acquisition closing was expected in the second quarter of 2022, however, now expected to be completed in the third quarter of this year. In addition, the company has received approval from all relevant competition authorities to close the Jackon transaction subject to certain conditions. In view of the results, the company will continue with this strategy. "BEWI's strong results and solid financial position, enable the company to continue its active M&A strategy going forward, pursuing attractive growth opportunities within selected industries and markets", the announcement highlights.
Founded in 1980 on the island of Frøya, off the coast of central Norway, BEWI is a leading international provider of packaging, components, and insulation solutions innovatively and efficiently. From the production of raw materials and end goods to the recycling of used products, their commitment to sustainability is integrated throughout the value chain. The company has also a strong commitment to leading the change toward a circular economy.