Norway's Bewi Q3 sales rise on broad-based growth across segments

Overview

• Europe packaging and insulation provider's Q3 net sales rose 12% yr/yr to 226.8 mln EUR

• Adjusted EBITDA for Q3 increased 30% yr/yr, with margin up to 13.3%

• Company proposed extraordinary cash dividend, subject to shareholder approval

Outlook

• Company says cost reductions and efficiency will remain key priorities going forward

• Company sees growth opportunities in its key markets

Result Drivers

• OPERATIONAL EFFICIENCY - Co said improved operational efficiency and margin management drove earnings in Insulation & Construction despite lower volumes

• FISH BOX DEMAND - Norwegian fish box business contributed to Packaging & Components growth, supported by strong salmon harvest volumes

• CIRCULAR SEGMENT GROWTH - Higher sales prices and increased recycled GPPS volumes boosted Circular segment results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-paper containers & packaging peer group is "buy"

• Wall Street's median 12-month price target for Bewi ASA is NOK21.00, about 20% above its November 3 closing price of NOK17.50

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 38 three months ago

Reuters Recommended Reads

• Nov 3 - SalMar Q3 operational EBIT tops estimates on record volume

• Nov 4 - Seafood producer Mowi Q3 EBIT hits record highs on strong salmon volumes

• Nov 2 - Fish farmer Bakkafrost Q3 operational EBIT rises on FOF segment growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)