BEWI ASA (BEWI) Earnings Call Transcript & Summary

[Audio Gap] bring us up to a larger size in recycling from our 20,000 tonnes now up to 35,000 tonnes, bringing us 1 major step closer to our target in terms of reaching 60,000 tonnes and becoming 100% Circular. And we have now a platform with a very solid and profitable company. We started this journey back in 2018. At that time, there was great difficulties and challenges connected with trying to take out the technology, which we had at that time. Profitability were not priority then either, but we have developed since then, both via acquisitions and also via greenfields, and now we are actually leading recycler in our business and industry and the target of collecting 45,000 tonnes within '24, and tonnes within 2026, each is now very realistic, and we are doing this, again, repeating myself with profitability. As we have reported also on the quarterly reports, you can see BEWI Circular as is in BEWI today. It is a business model that has brought us up to EUR 33 million in turnover with a tremendous growth since we started and we are now at an EBITDA margin at 10%. BEWI Circular is responsible for increasing BEWI's group collection and recycling of EPS. And Circular businesses now have a capacity of 25,000 to 30,000 tonnes, and have a run rate at 23,000 tonnes. And our target is to reach 60,000 tonnes within 2026. And we have stated all along that this is fundamental for the company. It's crucial to be a circular company. And now we have taken a big step towards becoming Circular. Next. The Berga company was established by Gaëtan Dumas in 2011, and they have proven also that their digital platform and the way of doing business with over thousands -- of almost 100 suppliers, connecting them with reproduction and also customers which then recycle their materials, traded 82,000 tonnes of recycled material back in 2021, increasing now. And we have the -- glad to say that we have the management on board for developing the company together. The company has a turnover of EUR 31 million and also have an EBITDA level of 10%. Meaning, that we will increase our collection of 15,000 tonnes. We have a platform for trading, recycled material all over the world, taking care of the streams, filling up our extruders and to continue to grow our Circular business with our high-end technology and a robust ET infrastructure through artificial intelligence and analytic reached for further growth in our company. And this creates, which I am proud to say, a large Circular industry partner for our customers and also for our suppliers, having a turnover of EUR 63 million with an EBITDA of almost 10%. Collecting over 100,000 tonnes, ensuring that 100,000 tonnes are recycled back to new products. And of them, of course, 35,000 tons of which is EPS our core materials. And we are still committed to make a difference by creating a Circular system for waste systems, and Berga is the platform that will bring us 1 large step closer to this structure, both in combining their knowledge and IT infrastructure, as I have said before, and our technology and knowledge about recycling the material. And we will continue to add on new M&A opportunities due to this very strong platform. So by that, I leave the room open for questions if there are any?

Joachim, please go ahead.

Yes so how much of these revenues will be into group revenues? And how much will be external revenues? I assume that a majority of it will be intragroup revenues?

No, everything is external and the way we report these external revenues. And also add on to that, obviously, Berga is today selling and buying material from other players than us. We are creating a platform which will grow on basis of that, we will continue to sell externally and we will continue to source externally. And this mostly is a platform to strengthen our further growth as -- also as a isolated division inside our business because as you can see on the figures as well, this is very profitable. And if you see how the Circular business has developed itself, this is not only so -- of course, we do this of idealistic reason, but this is also one of the most fantastic business opportunity has ever seen. And as you can see on the numbers, both Berga and BEWI Circular is leading the change really in that sense that it is very profitable today also. So on the contrary, this is a self-made division. Any other questions?

There seem to be no more questions about the transaction or BEWI Circular. I think concluding, we can say that we have a lot of exciting opportunities going forward as well within this segment, we intend to continue growing. And we look forward to presenting BEWI Circular further to investors and stakeholders about the business opportunities in the Circular model and how we see the market going forward. So thank you for taking the time, and we'll see you hopefully in August. Thank you. Bye-bye.

Bye-bye.