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BWX Ltd Refinances Debt on Improved Terms

Jordan Baird

Jordan Baird is the head ASR Wealth Advisers client services desk and has been with the organisation since 2017. He first started investing in his early years. While he believes that investors should leave no stone unturned he has a particular interest in trading based on broad macroeconomic trends along with specific analysis of innovative up-and-coming companies.

BWX Ltd. (ASX: BWX) is a vertically integrated developer, manufacturer, distributor and marketer of branded skin and hair care products with an emphasis on the natural segment of the beauty and personal care market. The Sukin brand is its most well-known product in Australia. BWX was listed in November 2015 and has a market capitalisation of $303 million.


BWX’s shares hit an all-time high of around $8.00 in January 2018 and then slumped to a low of around $1.30 in January 2019. The sharp fall in the share price reflects an earnings downgrade in December 2018 and the company losing focus on its business during the period of the failed takeover led by BWX’s former CEO which was finally resolved in September 2018. The company also had another earnings downgrade in May 2019.

Since early June 2019, BWX’s share price has rallied from around $1.60 to $2.20 (18 July 2019) on the back of positive news. First, BWX’s major shareholder (Bennelong Australian Equity Partners Ltd) announced on 13 June 2019 that it has increased its interest in BWX from 20.7 per cent to 22.2 per cent. Second, BWX announced on 12 July 2019 that it has extended the term on its debt facility from June 2020 to July 2022 and cost of this finance has been reduced.

Investors may be interested in BWX as a potential recovery stock at the small-end of the market. The annual results due to be released in August 2019 may provide evidence of a recovery in earnings going forward into 2019-20.




This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978) (“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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