Tear Sheet: BW Holding Inc.

The company is implementing further procurement and other cost-savings actions in response to the softer macroeconomic environment, which has reduced the demand for its premium labels. Despite the elevated selling, general, and administrative (SGA) expenses due to its investments in its e-commerce portal and promotional activities, we anticipate BW will improve its EBITDA margins this year, supported by the realization of synergies from its acquisition and benefits from its cost-savings actions. We forecast the company's S&P Global Ratings-adjusted EBITDA margin will be in the 16-18% range for 2024 up from 14.5% in 2023. In addition, BW was recently awarded a U.S. patent for its recyclable light-blocking shrink sleeve solution for PET packaging. We believe this could accelerate organic growth and

...June 26, 2024 BW Holding's leverage will remain high despite our expectation for operational improvements. The company is implementing further procurement and other cost-savings actions in response to the softer macroeconomic environment, which has reduced the demand for its premium labels. Despite the elevated selling, general, and administrative (SGA) expenses due to its investments in its e-commerce portal and promotional activities, we anticipate BW will improve its EBITDA margins this year, supported by the realization of synergies from its acquisition and benefits from its cost-savings actions. We forecast the company's S&P Global Ratings-adjusted EBITDA margin will be in the 16-18% range for 2024 up from 14.5% in 2023. In addition, BW was recently awarded a U.S. patent for its recyclable light-blocking shrink sleeve solution for PET packaging. We believe this could accelerate organic growth and benefit margins if the company is able to grow into select new markets over the next few...

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