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Interim report for BEWiSynbra Group for the period January to March 2020
HIGHLIGHTS for the first quarter of 2020
Numbers in parentheses refers to the corresponding periods in the previous year
- BEWiSynbra Group reported net sales of SEK 1,121 million for the first quarter (SEK 1,076 million), an increase of 4.1 per cent compared to the corresponding quarter last year
- Adjusted EBITDA was SEK 158 million (SEK 139 million), while adjusted EBITA amounted to SEK 96 million (SEK 86 million)
- Earnings were negatively impacted by items affecting comparability of SEK 11 million for the quarter (negatively impacted by SEK 23 million)
- EBIT for the Group was SEK 69 million (SEK 47 million)
- Improved volumes in most operating markets
- Limited financial effects of covid-19
- Several strategic acquisitions during the quarter
Jonas Siljeskär, CEO of BEWiSynbra Group:
The first quarter of the year BEWiSynbra Group delivered a stable performance. Our volumes increased in most operating markets, even if revenues were affected by lower market prices in all segments. Due to the good volumes and favourable raw material prices for downstream, our segments for finished products, we improved adj. EBITDA by 14% compared to the corresponding period last year. Towards the end of the quarter, the world focused on the global outbreak of the covid-19. With the help of immediate actions, the financial effects of the pandemic during the quarter on our company were limited.
We continued to work and deliver in accordance with our strategic priorities; innovation, circular economy, and acquisitions that will strengthen and develop existing operations as well as create synergies and long-term value. During the quarter an insulation facility in Sweden was acquired, which will be key to secure further growth for our Nordic insulation business. Through the acquisition, we get access to high volumes of XPS, enabling us to offer our customers a combination of EPS and XPS. Our dedicated efforts to make our industry more sustainable is another strategic priority, and during the quarter two more companies were added to the Circular activities of BEWiSynbra. Circular Portugal, which was communicated at the end of Q4 2019, still in the start-up phase. Poredo, an existing company located in the Netherlands with a proven performance that started contributing to the financial performance directly. With the expansion of our Circular business, we are closer to our ambitious recycling target of 60,000 tonnes EPS per year.
The covid-19 outbreak started affecting our operations in late March. We were quick to protect most importantly health and safety among the employees, but also the commitments to our customers. We continue to actively monitor developments and have implemented measures to mitigate the effects on our staff, customer operations and earnings. Gladly, the impact on our operations and ability to deliver products has been limited, as was the effect on sales during the quarter. The covid-19 and the measures taken by communities around the world will affect BEWiSynbra Group, and even though the impact for the rest of the year is still uncertain, being well diversified both geographically and industrially in terms of end customers means that we are in a good position to handle this kind of disruption. Certain customer segments will be more affected than others, but we will have a competitive advantage towards many of our competitors.
I’d like to close this CEO statement by saying a big thank you to all our customers who are working hard to manage the situation, and all my colleagues for your commitment and work in these challenging times.
Please see the full interim report for the period January – March 2020 attached.
For further information, please contact:
Hanna Laurentz, Dir. Communication & IR, tel: +46 701 774400
Marie Danielsson, CFO, BEWiSynbra Group AB, tel: +46 70 661 0047
About BEWiSynbra Group AB
BEWiSynbra Group is one of the largest vertically integrated producers of expandable polystyrene (EPS) in Europe, focusing on sustainable solutions for packaging and technical components, as well as insulation. Sustainability and innovation are key drivers for the Group’s competitive advantage, and BEWiSynbra has an ambitious approach to its recycling initiatives.
The information is such that BEWiSynbra Group AB (publ) 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 08:00 CET on 15 May 2020.