BEWi (BEWI) Q2 2024 earnings summary

Executive summary

• Q2 net sales were €277.2m, down 4.3% YoY; adjusted EBITDA was €29.4m, down 6.5%, including €7.6m in acquisition-related compensation benefiting RAW.

• Cautious construction markets weighed on segment volumes, while early recovery signs and stronger interest in certified recycled materials supported the outlook.

• Positive operating cash flow of €23.0m and completed property disposals supported liquidity and balance-sheet actions; priorities included cost and capacity alignment, working-capital reductions, and selective growth investment.

Financial highlights

• Q2 revenue was €277.2m versus €289.6m; adjusted EBITDA was €29.4m versus €31.5m, and EBIT was €13.5m versus €14.1m.

• Net profit was €1.4m versus €3.0m; net financial items were -€10.7m versus -€9.2m, reflecting higher rates and leasing interest.

• H1 revenue was €521.1m, down 11.1% YoY; adjusted EBITDA was €48.0m, down 19.5%, and net result was -€6.9m versus €2.3m profit.

• External costs fell 10% YoY; raw materials and goods for resale represented ~50% of sales, while fixed costs were down in line with the prior year despite inflation.

Outlook and guidance

• Construction markets remained cautious into Q3, with recovery signs; cost and capacity adjustments and balance-sheet strengthening remained priorities.

• FY 2024 CAPEX target was €20m, below the normal target of 2.5% of net sales; CAPEX was expected to remain low in 2025.

• Available cash and credits exceeded €100m at quarter-end; the liquidity target was raised to €150m, supported by working-capital reductions, low CAPEX, and strategic review initiatives.

• Ambition to double revenue over 3–5 years, increasing insulation exposure to ~75% of revenue; growth plans were supported by tuned capacity, certified recycled EPS, and a growing M&A pipeline.

• EPS fish-box volumes were expected to rise in H2 versus H1; food-packaging volumes were otherwise described as more stable.