BEWi (BEWI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was EUR 277.2 million, down 4.3% year-over-year, with adjusted EBITDA at EUR 29.4 million, down 6.5%, aided by a EUR 7.6 million compensation item.

• Building and construction markets remained cautious, impacting all segments, but early signs of recovery are visible in some regions.

• Operational cash flow remained solid, and the balance sheet was strengthened through real estate divestments and inventory reduction.

• Strategic priorities included cost adaptation, new production lines in Belgium and Sweden, and a focus on recycled EPS to leverage regulatory trends.

• Over EUR 50 million invested in recycling since 2018, leveraging certified recycled EPS for "tax-free" products.

Financial highlights

• Net sales for Q2 2024 were EUR 277.2 million, a 4.3% decrease year-over-year; H1 2024 net sales were EUR 521.1 million, down 11.1%.

• Adjusted EBITDA margin was 10.6% in Q2, down 0.3 percentage points year-over-year; H1 margin was 9.2%.

• EBIT for Q2 2024 was EUR 13.5 million, compared to EUR 14.1 million in Q2 2023; H1 EBIT was EUR 16.0 million.

• Net result for Q2 was EUR 1.4 million, down from EUR 3.0 million; H1 net loss was EUR 6.9 million.

• Operating cash flow was EUR 23.0 million in Q2, with CAPEX at EUR 7.8 million.

Outlook and guidance

• Early signs of recovery in building and construction markets, with increased interest in recycled materials and stable food packaging volumes.

• Well positioned to capitalize on higher volumes when the market rebounds, supported by strong fundamentals and growth opportunities.

• Ambition to double revenue in the next 3–5 years, focusing on insulation as a key growth driver.

• Strategic review of Automotive business underway to reduce exposure and focus on insulation and energy-efficient solutions.

• Continued cost and capacity adjustments, with confidence in long-term growth potential.