Acquisition-driven growth pumped up packaging giant BEWI’s earnings

Aslak Berge

BEWI had revenues for the fourth quarter of 2020 of EUR 130.2 million, up 25 per-cent from the corresponding period in 2019. Adjusted EBITDA for the quarter ended at EUR 16.4 million, up from EUR 9.5 million for the same period in 2019.

“We are delivering another quarter of solid operations. We have an increase of 25 per-cent compared to the fourth quarter of 2019, driven by increased volumes in all segments and by contributions from acquired companies. Most of our operating units also deliver an improved EBITDA, which is impressive considering how challenging the pandemic has been,” said BEWI CEO Christian Bekken in a stock exchange announcement.

Its facilities are primarily known for making polystyrene fish boxes.

During the fourth quarter, the integration of the Norwegian packaging and insulation company BDH Holding acquired in August, progressed as planned. Also, BEWI divested properties in the Netherlands of approximately EUR 33 million in the fourth quarter, continuing its strategy to divest properties to release capital for growth.

In the fourth quarter, segment RAW experienced a strong underlying demand, while the insulation segment recorded slightly improved volumes, coming from the Nordic market. The industrial construction market in the Benelux region continues to be weak, but an improvement was noted in the housing market in the region. In the packaging and components segment, BEWI recorded volume increase
in all regions, with the strongest increase in Norway.

In BEWI, both organic and M&A growth initiatives, remain a high priority. The company continued its investments in its recycling facility in Portugal and new fish box facility at Senja in the quarter and invested in new machinery and technology at other facilities.

“Going into 2021, our well-performing operations and recent divestments provide us with a strong cash position. This, combined with ongoing growth initiatives and a solid pipeline of M&A opportunities, give us a very solid foundation for further growth,” Bekken continued.

Based on the company’s financial position, investment plans and growth ambitions, the board of directors of BEWI proposes to pay a dividend of NOK 0.42 per share for the 2020 financial year.


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