BE Group AB

Quarterly Report • Oct 17, 2024

Third quarter 2024

• Net sales decreased by 11% to SEK 1,057 M (1,187)
• The underlying operating result increased to SEK 6 M (4)
• The operating result increased to SEK 5 M (-42), including inventory losses of SEK -9 M (-40) and items affecting comparability of SEK 8 M (-6)
• Result after tax increased to SEK 18 M (-42)
• Cash flow from operating activities amounted to SEK -13 M (-17)
• Earnings per share increased to SEK 1.36 (-3.27)

First nine months 2024

• Net sales decreased by 12% to SEK 3,634 M (4,151)
• The underlying operating result increased to SEK 66 M (47)
• The period was affected by items affecting comparability of SEK -19 M (-6) related to closure of the Baltic unit
• The operating result increased to SEK 20 M (-15), including inventory losses of SEK -27 M (-56) and items affecting comparability
• Result after tax increased to SEK 15 M (-26)
• Cash flow from operating activities amounted to SEK 52 M (341)
• Earnings per share increased to SEK 1.15 (-2.02)

"I now note a decent increase in tonnage in the main markets Sweden and Finland in the third quarter despite a rather difficult market situation, particularly in the construction sector. The increase amounted to 4 percent and, excluding the rebar business, which is exclusively construction-related, the increase amounted to 9 percent. The gross margin has also improved, although the level is not yet satisfactory."

Peter Andersson, President and CEO

	2024	2023		2024	2023
Results overview	Jul-Sep	Jul-Sep	Change	Jan-Sep	Jan-Sep	Change
Tonnage, thousands of tonnes	62	64	-2	211	218	-7
-of which organic tonnage, thousands of tonnes	62	59	3	204	203	1
Net sales, SEK M	1,057	1,187	-130	3,634	4,151	-517
Underlying operating result, SEK M	6	4	2	66	47	19
Operating result, SEK M	5	-42	47	20	-15	35
Profit/loss for the period, SEK M	18	-42	60	15	-26	41
Earnings per share, SEK	1.36	-3.27	4.63	1.15	-2.02	3.17
Cash flow from operating activities, SEK M	-13	-17	4	52	341	-289

BE Group AB (publ), which is listed on the Nasdaq Stockholm exchange, is a leading independent steel distributor that stores and processes steel, stainless steel, and aluminium for customers primarily in the construction and manufacturing industries. Through the company's production services, customers can order customized steel components to optimize their production processes. In 2023, the Group reported sales of SEK 5.3 billion. BE Group has approximately 640 employees, with Sweden and Finland as its largest markets. The headquarters is located in Malmö, Sweden. Read more about BE Group at www.begroup.com.

A decent increase in tonnage despite a rather difficult market situation

A year ago, I wrote that "a lot of steel is needed even in worse times and now it is important to secure as many deals as possible at healthy margins". I now note a decent increase in tonnage in the main markets Sweden and Finland in the third quarter despite a rather difficult market situation, particularly in the construction sector. The increase amounted to 4 percent and, excluding the rebar business, which is exclusively construction-related, the increase amounted to 9 percent. The gross margin has also improved, although the level is not yet satisfactory.

Overall, net sales fell by 11 percent to SEK 1,057 M (1,187), with lower market prices and the closure of the Baltic unit accounting for the lion's share of the explanation. The underlying operating result amounted to SEK 6 M (4), corresponding to an operating margin of 0.6 percent (0.3).

The closure of the Baltic unit, which was communicated at the end of March, was essentially concluded in the third quarter and went better than planned, resulting in a positive impact on the result for the quarter of approximately SEK 8 M. The Group's future results will be affected positively by the closure.

Outlook

Demand in the fourth quarter is expected to be in line with the third quarter. Producers of flat products and analyst firms believe in a stronger market in 2025. For the first half of the year, I believe that is more a hope. The automotive sector is cutting back and the construction sector has not recovered yet. In addition, it takes a long time before it is time for roof and facade sheet metal even if construction begins now.

For long products, it is reasonable to believe in better times. Mostly because the market is really weak now and when interest rates fall, a number of construction projects that have been "pending" will be activated again. For our part, it should first be noticed in the area of rebar. I wouldn't be surprised if there was a shortage of construction workers, materials and equipment in the second half of 2025.

Our focus

Our most important focus is to maintain momentum in our strategic efforts to continue improving the result. Simply put, this means increasing and deepening our cooperation with our customers to win as much new deals as possible, streamline the supply chain and lower the costs in order to create conditions for a healthy margin throughout the business.

Lastly, I would also like to mention our work on occupational health and safety. The Swedish part of the company has now worked for a year without an accident that requires absence from work. In Finland, one of our facilities has more than 1,000 days without accidents. A fantastic improvement over a few years ago and I strongly believe that a safe and sound workplace is the foundation for good business. If we can't take care of our employees and offer a safe workplace, we can't reasonably take care of our business and customers either.

Peter Andersson President and CEO

"Our most important focus is to maintain momentum in our strategic efforts to continue improving the result"

Bridge 2023-2024 operating result SEK M	Q1	Q2	Q3	Q4	Jan-Sep
Operating result 2023	1	26	-42	-37	-15
Reversal of inventory gains (-)/losses (+)	9	7	40	20	56
Items affecting comparability	–	–	6	–	6
Underlying operating result 2023	10	33	4	-17	47
Change in sales	-26	-17	-15	–	-58
Change in underlying gross margin	39	-6	4	–	37
Change in overhead costs	19	8	13	–	40
Underlying operating result 2024	42	18	6	–	66
Reversal of inventory gains (+)/losses (-)	-11	-7	-9	–	-27
Items affecting comparability	-27	–	8	–	-19
Operating result 2024	4	11	5	–	20

Comments on the report

Third quarter

The Group's consolidated net sales for the period decreased by 11 percent compared to last year and amounted to SEK 1,057 M (1,187). The decline is mainly explained by negative price and mix effects of -7 percent, closure of the Baltic unit of -6 percent and negative currency effects of -2 percent partly compensated by organic tonnage growth of 4 percent. Prices for flat products continued to fall in the third quarter, primarily as a consequence of a lower pace in the European automotive sector, while prices for long products remained relatively stable. Tonnage to the manufacturing sector rose organically by 6 percent and deliveries to the sub-supplier segment increased by 12 percent. Tonnage to the construction segment was organically unchanged and was affected by low demand for rebar. However, excluding rebar, the construction segment rose by 23 percent as sales of long products increased strongly.

Increased tonnage on the main markets and more stable steel prices led to an increase in gross profit to SEK 118 M (99), resulting in a gross margin of 11.1 percent (8.3). The operating result increased to SEK 5 M (-42), corresponding to an operating margin of 0.5 percent (-3.5). Adjusted for inventory losses of SEK -9 M (-40) and items affecting comparability of SEK 8 M (-6), as a result of reduced provision related to the closure of the Baltic unit, the underlying operating result increased slightly to SEK 6 M (4). The underlying operating margin for the period increased to 0.6 percent (0.3).

First nine months

During the first nine months, the Group's net sales decreased by 12 percent compared to last year and amounted to SEK 3,634 M (4,151). This is explained by negative price and mix effects of -9 percent and closure of unit of -3 percent. Tonnage in business area Sweden & Poland decreased organically by -1 percent, but excluding rebar it increased by 7 percent. In Finland & Baltics organic tonnage increased by 1 percent. Gross profit increased to SEK 435 M (430) and the gross margin rose to 12.0 percent (10.4).

The operating result increased to SEK 20 M (-15), corresponding to an operating margin of 0.5 percent (-0.4). Adjusted for inventory losses of SEK -27 M (-56) and items affecting comparability of SEK -19 M (-6), the underlying operating result increased to SEK 66 M (47). During the period, the underlying operating margin increased to 1.8 percent (1.1).

The business area includes the Group's operations in Sweden consisting of the companies BE Group Sverige, BE Group Produktion Arvika, the joint venture ArcelorMittal BE Group SSC AB as well as the Polish operation BE Group Poland.

Third quarter

Net sales decreased by 5 percent in the third quarter compared to last year and amounted to SEK 512 M (540). The decrease is explained by negative price and mix effects of -6 percent while organic tonnage increased 1 percent. Sales of long products, measured in tonnage, increased strongly compared to last year except for rebar which decreased. The operating result amounted to SEK -10 M (-20). Adjusted for inventory losses of SEK -8 M (-19) and items affecting comparability of SEK 0 M (-4), the underlying operating result amounted to SEK -1 M (3).

In the Swedish operations, tonnage increased with the exception of continued weak demand for rebar from the construction sector. Lower steel prices and a continued low gross margin contributed to a weak underlying operating result. Falling sheet metal prices and weaker demand led to a lower gross margin and our joint venture AMBE therefore provided a lower operating result than last year.

The Polish operations increased in volume but the result was negative due to lower steel prices and a low gross margin.

First nine months

Net sales for the first nine months decreased by 8 percent compared to last year, amounting to SEK 1,862 M (2,020). The decline is explained by negative price and mix effects of -7 percent and organic tonnage growth of -1 percent. The decrease in tonnage is mainly explained by lower demand for rebar. Excluding rebar, tonnage increased by 7 percent. Operating result increased to SEK 14 M (-7). Adjusted for inventory losses of SEK -28 M (-46) and items affecting comparability of SEK 0 M (-4), the underlying operating result amounted to SEK 43 M (43).

The business area includes the Group's operations in Finland and the three Baltic countries. The Baltic unit is under closure.

Third quarter

Net sales during the third quarter decreased by 16 percent compared to last year and amounted to SEK 554 M (656). It is explained by closure of the Baltic unit of -10 percent, negative price and mix effects of -9 percent and negative currency effects of -3 percent partly compensated by organic tonnage growth of 7 percent. Compared to last year, mainly sales of long products, measured in tonnage, increased. The operating result increased to SEK 14 M (-20). Adjusted for inventory losses of SEK -1 M (-21) and items affecting comparability of SEK 8 M (-2), as a result of reduced provision related to the closure of the Baltic unit, the underlying operating result increased to SEK 7 M (3).

The Finnish operations provided a somewhat increased underlying operating result compared to last year. Lower steel prices and turnover is compensated by tonnage growth and strengthened gross margin.

First nine months

Net sales for the first nine months decreased by 17 percent compared to last year, amounting to SEK 1,807 M (2,165). The decline is explained by negative price and mix effects of -11 percent and closure of unit of -6 percent. Operating result increased to SEK 4 M (-1) and adjusted for inventory gains and losses of SEK 1 M (-10) and items affecting comparability of SEK -19 M (-2), the underlying operating result increased to SEK 22 M (9).

The closure of the Baltic unit, which was communicated at the end of March, went better than planned and has, in all material aspects, been concluded in the third quarter. The closure is expected to generate a positive cash flow of about SEK 30 M and will have a positive impact on the Group's future results.

The Group & Parent Company

Net financial items and tax

The Group's consolidated net financial items in the third quarter amounted to SEK -7 M (-9), of which net interest amounted to SEK -7 M (-7). During the quarter, interest expenses related to leases according to IFRS 16 amounted to SEK -2 M (-3). Net financial items for the first nine months amounted to SEK -20 M (-18) and net interest to SEK -21 M (-20), of which SEK -7 M (-8) relates to leases according to IFRS 16.

Taxes for the third quarter amounted to SEK 20 M (9) and to SEK 15 M (7) for the first nine months. The positive tax effect in the quarter is mainly explained by reversal of a deferred tax liability in the Baltics. Profit after tax amounted to SEK 18 M (-42) and was SEK 15 M (-26) for the first nine months.

Cash flow

The Group's consolidated working capital amounted to SEK 703 M (777) at the end of the period and the working capital tied-up for the third quarter was 16.4 percent (16.5). The lower working capital is mainly explained by decreased accounts receivable, which amounted to SEK 632 M (710) at the end of the period. The decrease in accounts receivable is explained by lower sales as a result of lower steel prices. Cash flow from operating activities amounted to SEK -13 M (-17) during the quarter and to SEK 52 M (341) for the first nine months.

Cash flow from investing activities amounted to SEK -16 M (-10) during the third quarter and to SEK -58 M (-82) for the first nine months and mainly refers to the investment in a new business system. Cash flow after investments thus amounted to SEK -29 M (-27) during the third quarter and to SEK -6 M (259) for the first nine months.

Financial position and liquidity

At the end of the period, consolidated cash and cash equivalents, including overdraft facilities, amounted to SEK 175 M (164) and the net debt excl. IFRS 16 was SEK 341 M (251). Equity amounted to SEK 1,449 M (1,477) at the end of the period.

Organization, structure and employees

The number of employees amounted to 634 compared to 689 at the same time last year. The average number of employees during the third quarter amounted to 636 (692).

Parent Company & consolidated items

Parent Company & consolidated items include the Parent Company and Group eliminations. For additional information see the Annual Report for 2023.

The effects regarding IFRS 16 were reported under Parent Company & consolidated items and have not been allocated to the two business areas.

Parent Company

Sales for the third quarter of the Parent Company, BE Group AB (publ), amounted to SEK 32 M (35) and derived from intra-Group services. These intra-Group services mainly include the subsidiaries' use of the BE Group brand and central expenses for IT and Finance. These expenses are distributed and invoiced to all subsidiaries in the Group. In the result follow-up of the business areas, these intra-group expenses have been eliminated except for expenses for IT and business systems. Out of the total costs for the Parent Company, of SEK -15 M (-16), SEK 15 M (14) was allocated to the subsidiaries. The operating result amounted to SEK 17 M (19). For the first nine months, net sales amounted to SEK 99 M (104) and the operating result to SEK 52 M (51).

Net financial items for the quarter amounted to SEK 2 M (44). Profit before tax amounted to SEK 19 M (63) and profit after tax amounted to SEK 15 M (59). Investments in the Parent Company during the quarter amounted to SEK 12 M (0). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 14 M (4).

Net financial items for the first nine months amounted to SEK 10 M (93). Profit before tax amounted to SEK 62 M (144) and profit after tax amounted to SEK 49 M (132). Investments in the Parent Company amounted to SEK 48 M (0).

Other information

Significant events after the end of the period

No significant events have taken place after the end of the period.

Transactions with related parties

No transactions took place between BE Group and related parties that had a material impact on the company's financial position and results.

Nomination Committee

In accordance with the company's procedures, a Nomination Committee has been appointed. The Nomination Committee consists of Petter Stillström (AB Traction), Alf Svedulf (Svedulf Fastighets AB), Johan Ahldin (own holdings) and Anders Rothstein, Chairman of BE Group AB, who is also the convener for the Nomination Committee.

Annual General Meeting 2025

BE Group's Annual General Meeting will take place on April 23, 2025, at 4:00 pm in Malmö, Sweden. Further information will be published on the company's website.

Significant risks and uncertainties

Through its operations, BE Group is exposed to global macroeconomic factors, the competitive situation, structural changes in the market and the economy, as well as financial risks such as currency risks, interest risks, credit and counterparty risks. Within the companies of the Group, continuous processes are ongoing to identify existing risks and assess how these should be handled. The risk exposure is explained in the 2023 Annual Report, which was published in March 2024.

Accounting principles

The interim report was prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The Parent Company's interim report is prepared in compliance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.

Refer to the 2023 Annual Report for details of the Group's other accounting principles and definitions of certain terms. The principles applied are unchanged in relation to the Annual Report. In other regards, the new standards and interpretations that have come into effect from the financial year 2024 have had no significant effect on the financial reporting.

Future information

Future reporting dates

BE Group AB (publ) intends to publish financial information on the following dates:

• The Year-end report 2024 will be published on January 28, 2025
• The Annual report 2024 will be available by the end of March 2025
• The Interim report for January-March 2025 will be published on April 23, 2025

Financial information is available in Swedish and English from BE Group's website and can be ordered by phone +46 (0) 40 38 42 00 or e-mail: info@begroup.com.

Malmö, October 17, 2024 BE Group AB (publ)

Peter Andersson

President and CEO

Questions concerning this report may be directed to:

Peter Andersson, President and CEO Tel: +46 (0)706 53 76 55, e-mail: peter.andersson@begroup.com

Christoffer Franzén, CFO Tel: +46 (0)705 46 90 05, e-mail: christoffer.franzen@begroup.com

BE Group AB (publ), Box 225, 201 22 Malmö, Sweden; Street address: Krusegatan 19B Corp. Reg. No: 556578-4724, Tel: +46 (0)40 38 42 00 info@begroup.com, www.begroup.com

This report has been reviewed by the company's auditors.

This information is information that BE Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact persons set out above at 2:00 p.m. CEST on October 17, 2024.

Auditor's report

BE Group AB (publ). reg. no. 556578-4724

Introduction

We have reviewed the condensed interim report for BE Group AB (publ) as at September 30, 2024 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.

Malmö den 17 oktober 2024

Ernst & Young AB

Peter Gunnarsson

Authorized Public Accountant

Condensed consolidated income statement

		2024	2023	2024	2023	2023	Rolling
(SEK M)	Note	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Net sales		1,057	1,187	3,634	4,151	5,328	4,811
Cost of goods sold	1	-939	-1,088	-3,199	-3,721	-4,784	-4,262
Gross profit		118	99	435	430	544	549
Selling expenses	1	-98	-107	-323	-356	-473	-440
Administrative expenses	1	-27	-30	-96	-102	-131	-125
Other operating income and expenses	2	9	-11	-10	-7	-15	-18
Participation in joint venture		3	7	14	20	23	17
Operating profit/loss		5	-42	20	-15	-52	-17
Financial items		-7	-9	-20	-18	-23	-25
Profit/loss before tax		-2	-51	0	-33	-75	-42
Tax		20	9	15	7	15	23
Profit/loss for the period		18	-42	15	-26	-60	-19
Earnings per share (SEK)		1.36	-3.27	1.15	-2.02	-4.59	-1.42
Earnings per share after dilution (SEK)		1.36	-3.27	1.15	-2.02	-4.59	-1.42

Consolidated statement of comprehensive income

(SEK M)	2024 Jul-Sep	2023 Jul-Sep	2024 Jan-Sep	2023 Jan-Sep	2023 Full-year	Rolling 12 months
Profit/loss for the period	18	-42	15	-26	-60	-19
Other comprehensive income
Items that may later be reclassified to profit/loss for the period
Translation differences	-3	-17	10	22	3	-9
Total other comprehensive income	-3	-17	10	22	3	-9
Comprehensive income for the period	15	-59	25	-4	-57	-28

Condensed consolidated balance sheet

	2024	2023	2023
(SEK M) Note	Sep 30	Sep 30	Dec 31
Goodwill	587	592	582
Other intangible assets	96	5	49
Tangible assets	219	205	213
Right of use assets	410	489	473
Investment in joint venture	189	188	191
Financial assets	0	0	0
Deferred tax assets	39	21	28
Total non-current assets	1,540	1,500	1,536
Inventories	860	881	792
Accounts receivable	632	710	532
Other receivables	89	149	88
Cash and equivalents	25	14	74
Total current assets	1,606	1,754	1,486
Total assets 3	3,146	3,254	3,022
Equity	1,449	1,477	1,424
Non-current interest-bearing liabilities	366	264	334
Non-current leasing liabilities	314	391	376
Deferred tax liability	32	49	52
Total non-current liabilities	712	704	762
Current interest-bearing liabilities	0	0	0
Current leasing liabilities	102	104	103
Accounts payable	674	627	528
Other current liabilities	204	336	201
Other current provisions	5	6	4
Total current liabilities	985	1,073	836
Total equity and liabilities 3	3,146	3,254	3,022

Condensed consolidated cash-flow statement

	2024	2023	2024	2023	2023	Rolling
(SEK M)	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Operating result	5	-42	20	-15	-52	-17
Adjustment for non-cash items	19	46	72	59	88	101
– of which, amortization/depreciation	32	30	96	91	121	126
– of which, other items	-13	16	-24	-32	-33	-25
Interest received	3	2	10	5	8	13
Interest paid	-9	-9	-30	-25	-33	-38
Income tax paid	7	9	-41	-36	-28	-33
Change in working capital	-38	-23	21	353	508	176
Cash flow from operating activities	-13	-17	52	341	491	202
Changes in intangible assets	-12	0	-49	0	-44	-93
Changes in tangible assets	-4	-10	-25	-82	-101	-44
Changes in shares in joint venture	–	–	16	–	–	16
Other cash flow from investing activities	0	0	0	0	0	0
Cash flow after investments	-29	-27	-6	259	346	81
1) Cash flow from financing activities	6	-147	-43	-296	-322	-69
Cash flow for the period	-23	-174	-49	-37	24	12
Translation differences in cash and equivalents	0	0	0	1	0	-1
Change in cash and equivalents	-23	-174	-49	-36	24	11

The cash flow from financing activities for the full-year 2023 contains the total decided dividend of SEK -156 M for 2022. 1)

Condensed statement of changes in equity

	2024	2023	2024	2023	2023	Rolling
(SEK M)	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Equity at beginning of period	1,434	1,536	1,424	1,637	1,637	1,477
Comprehensive income for the period	15	-59	25	-4	-57	-28
Dividend	–	–	–	-156	-156	–
Equity at end of period	1,449	1,477	1,449	1,477	1,424	1,449

Note 1 Amortizations and depreciations

	2024	2023	2024	2023	2023	Rolling
(SEK M)	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Amortization of intangible assets	0	1	2	3	3	2
Depreciation of tangible assets	8	6	22	17	24	29
Depreciation of right of use assets	24	23	72	71	94	95
Total amortizations and depreciations	32	30	96	91	121	126

Note 2 Items affecting comparability

	2024	2023	2024	2023	2023	Rolling
(SEK M)	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Restructuring expenses	–	-6	–	-6	-6	0
Closure expenses	8	–	-19	–	–	-19
Total items affecting comparability	8	-6	-19	-6	-6	-19

Note 3 Valuation of financial assets and liabilities

Fair value for long-term borrowing corresponds in all material respects with the carrying amount as the borrowing runs at a variable interest rate and the own credit risk has not changed significantly. Fair value for other financial assets and liabilities corresponds in all material respects with the carrying amount as they are short-term and the discounting effect is not considered to be significant. All financial instruments estimated at fair value is included in level 2.

Derivative instruments

	2024	2023	2023
(SEK M)	Sep 30	Sep 30	Dec 31
Financial assets
Currency derivatives	–	–	–
Total	–	–	–
Financial liabilities
Currency derivatives	-3	–	-14
Total	-3	–	-14

Segment reporting

Net sales by business area

	2024	2023	2024	2023	2023	Rolling
(SEK M)	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Sweden & Poland	512	540	1,862	2,020	2,641	2,483
Finland & Baltics	554	656	1,807	2,165	2,729	2,371
Parent Company & consolidated items	-9	-9	-35	-34	-42	-43
Group	1,057	1,187	3,634	4,151	5,328	4,811

Net sales by business area and product group

2024		Parent company & Sweden & Poland Finland & Baltics consolidated items						Total
(SEK M)	Jul-Sep	Jan-Sep	Jul-Sep	Jan-Sep	Jul-Sep	Jan-Sep	Jul-Sep	Jan-Sep	Rolling 12 months
Long steel products	234	822	165	524	0	0	399	1,346	1,783
Flat steel products	202	774	266	898	0	0	468	1,672	2,220
Stainless steel	59	206	82	256	0	0	141	462	604
Aluminium	10	36	29	88	0	0	39	124	164
Other	7	24	12	41	-9	-35	10	30	40
Total	512	1,862	554	1,807	-9	-35	1,057	3,634	4,811

2023	Sweden & Poland			Finland & Baltics		Parent company & consolidated items		Total
(SEK M)	Jul-Sep	Jan-Sep	Jul-Sep	Jan-Sep	Jul-Sep	Jan-Sep	Jul-Sep	Jan-Sep	2023 Full-year
Long steel products	248	926	188	600	0	0	436	1,526	1,963
Flat steel products	210	777	335	1,104	0	0	545	1,881	2,429
Stainless steel	59	236	93	328	0	0	152	564	706
Aluminium	16	53	28	93	0	0	44	146	186
Other	7	28	12	40	-9	-34	10	34	44
Total	540	2,020	656	2,165	-9	-34	1,187	4,151	5,328

Net sales by country based on customer´s domicile

	2024	2023	2024	2023	2023	Rolling
(SEK M)	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Sweden	481	511	1,748	1,898	2,549	2,399
Finland	547	583	1,699	1,935	2,430	2,194
Other	29	93	187	318	349	218
Group	1,057	1,187	3,634	4,151	5,328	4,811

Shipped tonnage per segment

	2024	2023	2024	2023	2023	Rolling
(Thousands of thonnes)	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Sweden & Poland	30	29	103	103	137	137
Finland & Baltics	34	36	111	117	151	145
Parent Company & consolidated items	-2	-1	-3	-2	-3	-4
Group	62	64	211	218	285	278

Operating result (EBIT) per segment

	2024	2023	2024	2023	2023	Rolling
(SEK M)	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Sweden & Poland	-10	-20	14	-7	-24	-3
Finland & Baltics	14	-20	4	-1	-22	-17
Parent Company & consolidated items	1	-2	2	-7	-6	3
Group	5	-42	20	-15	-52	-17

Operating margin per segment

	2024	2023	2024	2023	2023	Rolling
	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Sweden & Poland	-1.9%	-3.6%	0.8%	-0.3%	-0.9%	-0.1%
Finland & Baltics	2.6%	-3.0%	0.2%	0.0%	-0.8%	-0.7%
Parent Company & consolidated items	N/A	N/A	N/A	N/A	N/A	N/A
Group	0.5%	-3.5%	0.5%	-0.4%	-1.0%	-0.4%

Underlying operating result (uEBIT) per segment 1)

	2024	2023	2024	2023	2023	Rolling
(SEK M)	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Sweden & Poland	-1	3	43	43	39	39
Finland & Baltics	7	3	22	9	-5	8
Parent Company & consolidated items	0	-2	1	-5	-4	2
Group	6	4	66	47	30	49

Underlying operating margin per segment 2)

	2024	2023	2024	2023	2023	Rolling
	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Sweden & Poland	-0.3%	0.5%	2.3%	2.1%	1.5%	1.6%
Finland & Baltics	1.3%	0.5%	1.2%	0.4%	-0.2%	0.3%
Parent Company & consolidated items	N/A	N/A	N/A	N/A	N/A	N/A
Group	0.6%	0.3%	1.8%	1.1%	0.6%	1.0%

Depreciation per segment

	2024	2023	2024	2023	2023	Rolling
(SEK M)	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Sweden & Poland	4	3	10	9	12	13
Finland & Baltics	4	3	13	9	13	17
Parent Company & consolidated items	24	24	73	73	96	96
Group	32	30	96	91	121	126

Investments in tangible and intangible assets per segment

	2024	2023	2024	2023	2023	Rolling
(SEK M)	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Sweden & Poland	3	4	19	14	27	32
Finland & Baltics	2	6	7	68	75	14
Parent Company & consolidated items	12	0	49	0	44	93
Group	17	10	75	82	146	139

Operating profit/loss (EBIT) adjusted for inventory gains and losses and items affecting comparability. Inventory gains and losses are the differences between the cost of goods sold at acquisition value and the cost of goods sold at replacement cost. The Group's internal model is used to calculate inventory gains and losses and has not been subject for review by the Group's auditor. 1)

Underlying operating result (uEBIT) as a percentage of net sales. 2)

Key data

(SEK M unless otherwise stated)	2024 Jul-Sep	2023 Jul-Sep	2024 Jan-Sep	2023 Jan-Sep	2023 Full-year	Rolling 12 months
Net sales	1,057	1,187	3,634	4,151	5,328	4,811
Earnings measurements
Gross result	118	99	435	430	544	549
Underlying gross result	124	134	455	475	606	586
Operating result (EBIT)	5	-42	20	-15	-52	-17
Underlying operating result (uEBIT)	6	4	66	47	30	49
Margin measurements
Gross margin	11.1%	8.3%	12.0%	10.4%	10.2%	11.4%
Underlying gross margin	11.7%	11.3%	12.5%	11.5%	11.4%	12.2%
Operating margin	0.5%	-3.5%	0.5%	-0.4%	-1.0%	-0.4%
Underlying operating margin	0.6%	0.3%	1.8%	1.1%	0.6%	1.0%
Capital structure
1) Net debt excl. IFRS 16	341	251	341	251	259	341
1) Net debt/equity ratio excl. IFRS 16	23.5%	16.9%	23.5%	16.9%	18.1%	23.5%
Working capital at end of period	703	777	703	777	683	703
Working capital (average)	691	784	688	908	863	706
1) Capital employed (average) excl. IFRS 16	1,800	1,842	1,779	1,932	1,899	1,795
Working capital tied-up	16.4%	16.5%	14.2%	16.4%	16.2%	14.7%
Return
1) Return on capital employed excl. IFRS 16	1.0%	-9.5%	1.4%	-1.5%	-3.1%	-3.8%
Per share data
Earnings per share (SEK)	1.36	-3.27	1.15	-2.02	-4.59	-1.42
Earnings per share after dilution (SEK)	1.36	-3.27	1.15	-2.02	-4.59	-1.42
Equity per share (SEK)	111.59	113.75	111.59	113.75	109.68	111.59
Cash flow from operating activities per share (SEK)	-1.02	-1.31	3.99	26.23	37.85	15.61
Shares outstanding at period end (thousands)	12,983	12,983	12,983	12,983	12,983	12,983
Average number of shares (thousands)	12,983	12,983	12,983	12,983	12,983	12,983
Growth
Sales growth	-11%	-22%	-12%	-23%	-23%	-14%
– of which organic tonnage growth	4%	-6%	0%	-14%	-12%	-4%
– of which price and mix changes	-7%	-21%	-9%	-13%	-15%	-10%
– of which currency effects	-2%	5%	0%	5%	4%	0%
– of which acquisitions	–	0%	–	0%	1%	0%
– of which divestments	-6%	0%	-3%	-1%	-1%	0%
Other
Average number of employees	636	692	644	683	678	653
Inventory gains and losses	-9	-40	-27	-56	-76	-47
Shipped tonnage (thousands of tonnes)	62	64	211	218	285	278

To visualize the development of BE Group's financial position, some information is in the key figure overview that is not defined in IFRS. A reconciliation/bridge between alternative performance measures used in this report and the closest IFRS measure is presented under Alternative performance measures. 1)

Condensed parent company income statement

(SEK M)	2024 Jul-Sep	2023 Jul-Sep	2024 Jan-Sep	2023 Jan-Sep	2023 Full-year	Rolling 12 months
Net sales	32	35	99	104	128	123
Administrative expenses	-15	-16	-47	-53	-64	-58
Other operating income and expenses	0	0	0	0	0	0
Operating profit/loss	17	19	52	51	64	65
Financial items	2	44	10	93	97	14
Profit/loss after financial items	19	63	62	144	161	79
Appropriations	–	–	–	–	-98	-98
Profit/loss before tax	19	63	62	144	63	-19
Tax	-4	-4	-13	-12	7	6
Profit/loss for the period, or comprehensive income for the period	15	59	49	132	70	-13

Condensed parent company balance sheet

	2024	2023	2023
(SEK M)	Sep 30	Sep 30	Dec 31
Intangible assets	93	2	45
Tangible assets	0	0	0
Financial assets	880	873	880
Total non-current assets	973	875	925
Current receivables	205	408	232
Cash and equivalents	14	4	64
Total current assets	219	412	296
Total assets	1,192	1,287	1,221
Equity	1,126	1,139	1,077
Non-current liabilities	–	0	–
Current liabilities	66	148	144
Total equity and liabilities	1,192	1,287	1,221

Key data – multi-quarter summary

(SEK M unless otherwise stated)	2024 Jul-Sep	2024 Apr-Jun	2024 Jan-Mar	2023 Oct-Dec	2023 Jul-Sep	2023 Apr-Jun	2023 Jan-Mar	2022 Oct-Dec	2022 Jul-Sep
Net sales	1,057	1,272	1,305	1,177	1,187	1,406	1,558	1,472	1,514
Earnings measurements
Gross result	118	152	165	114	99	172	159	51	173
Underlying gross result	124	157	174	131	134	181	160	110	197
Operating result (EBIT)	5	11	4	-37	-42	26	1	-119	40
Underlying operating result (uEBIT)	6	18	42	-17	4	33	10	-50	67
Margin measurements
Gross margin	11.1%	12.0%	12.6%	9.6%	8.3%	12.3%	10.2%	3.4%	11.5%
Underlying gross margin	11.7%	12.4%	13.3%	11.1%	11.3%	12.8%	10.3%	7.4%	13.0%
Operating margin	0.5%	0.8%	0.3%	-3.2%	-3.5%	1.9%	0.0%	-8.1%	2.6%
Underlying operating margin	0.6%	1.4%	3.2%	-1.4%	0.3%	2.4%	0.6%	-3.4%	4.4%
Capital structure
1) Net debt excl. IFRS 16	341	289	271	259	251	203	204	357	475
1) Net debt/equity ratio excl. IFRS 16	23.5%	20.1%	18.7%	18.1%	16.9%	13.2%	12.4%	21.7%	27.4%
Working capital at end of period	703	681	686	683	777	792	931	1,130	1,340
Working capital (average)	691	684	684	730	784	861	1,031	1,234	1,204
1) Capital employed (average) excl. IFRS 16	1,800	1,764	1,757	1,757	1,842	1,964	2,023	2,173	2,197
Working capital tied-up	16.4%	13.4%	13.1%	15.5%	16.5%	15.3%	16.5%	21.0%	19.9%
Return
1) Return on capital employed excl. IFRS 16	1.0%	2.1%	1.0%	-8.6%	-9.5%	4.9%	-0.4%	-22.3%	6.8%
Per share data
Earnings per share (SEK)	1.36	0.13	-0.35	-2.58	-3.27	1.47	-0.22	-7.79	2.05
Earnings per share after dilution (SEK)	1.36	0.13	-0.35	-2.58	-3.27	1.47	-0.22	-7.79	2.05
Equity per share (SEK)	111.59	110.45	110.87	109.68	113.75	118.32	126.57	126.11	133.30
Cash flow from operating activities per share (SEK)	-1.02	1.63	3.38	11.62	-1.31	10.16	17.37	11.75	-14.14
Shares outstanding at period end (thousands)	12,983	12,983	12,983	12,983	12,983	12,983	12,983	12,983	12,983
Average number of shares (thousands)	12,983	12,983	12,983	12,983	12,983	12,983	12,983	12,983	12,983
Growth
Sales growth	-11%	-10%	-16%	-20%	-22%	-31%	-16%	-3%	10%
– of which organic tonnage growth	4%	5%	-7%	-6%	-6%	-18%	-15%	-14%	-15%
– of which price and mix changes	-7%	-12%	-10%	-16%	-21%	-17%	-5%	5%	19%
– of which currency effects	-2%	0%	1%	2%	5%	5%	4%	5%	3%
– of which acquisitions	–	–	–	0%	0%	0%	1%	3%	4%
– of which divestments	-6%	-3%	0%	0%	0%	-1%	-1%	-2%	-1%
Other
Average number of employees	636	643	652	673	692	689	674	656	656
Inventory gains and losses	-9	-7	-11	-20	-40	-7	-9	-69	-27
Shipped tonnage (thousands of tonnes)	62	73	76	67	64	73	81	72	68

To visualize the development of BE Group's financial position, some information is in the key figure overview that is not defined in IFRS. A reconciliation/bridge between alternative performance measures used in this report and the closest IFRS measure is presented under Alternative performance measures. 1)

Alternative performance measures

The Group uses a number of alternative performance measures in its report. The alternative performance measures that BE Group considers significant are the following:

Underlying operating result (uEBIT)

	2024	2023	2024	2023	2023	Rolling
(SEK M)	Jul-Sep	Jul-Sep	Jan-Sep	Jan-Sep	Full-year	12 months
Operating result	5	-42	20	-15	-52	-17
Reversal of inventory gains (-)/losses (+)	9	40	27	56	76	47
Adjustment for items affecting comparability	-8	6	19	6	6	19
Group	6	4	66	47	30	49

Working capital

	2024	2023	2023
(SEK M)	Sep 30	Sep 30	Dec 31
Inventories	860	881	792
Accounts receivable	632	710	532
Other receivables	89	149	88
Deduction accounts payable	-674	-627	-528
Deduction other current liabilities	-204	-336	-201
Rounding	–	–	–
Group	703	777	683

Average working capital is an average for each period based on quarterly data.

Net debt excl. IFRS 16

	2024	2023	2023
(SEK M)	Sep 30	Sep 30	Dec 31
Non-current interest-bearing liabilities and leasing liabilities	680	655	710
Current interest-bearing liabilities and leasing liabilities	102	104	103
Deduction leasing liabilities	-416	-495	-479
Deduction financial assets	0	0	0
Deduction cash and equivalents	-25	-14	-74
Rounding	–	1	-1
Group	341	251	259

Net debt/equity ratio excl. IFRS 16 is calculated as net debt excl. IFRS 16 divided by Equity.

Capital employed excl. IFRS 16

	2024	2023	2023
(SEK M)	Sep 30	Sep 30	Dec 31
Equity excl. IFRS 16	1,455	1,484	1,431
Non-current interest-bearing liabilities and leasing liabilities	680	655	710
Current interest-bearing liabilities and leasing liabilities	102	104	103
Deduction leasing liabilities	-416	-495	-479
Rounding	1	1	–
Group	1,822	1,749	1,765

Average capital employed excl. IFRS 16 is an average for each period based on quarterly data.

Definitions of key data

Adjusted results measurements
Underlying gross result	The underlying gross result is the reported gross result adjusted for inventory gains and losses (deductions for gains and additions for losses).
Underlying operating result (uEBIT)	Operating result (EBIT) before items affecting comparability adjusted for inventory gains and losses (deductions for gains and additions for losses).
Items affecting comparability	Items that do not have any link to the normal operations of the Group or that are of a non-recurring nature, where a reporting together with other items in the consolidated comprehensive income statement would have given a comparison distortion effect that would have made it diffcult to judge the development of the ordinary operations for an outside viewer.
Adjusted margin measurements
Underlying gross margin	Underlying gross result as a percentage of net sales.
Underlying operating margin	Underlying operating result (uEBIT) as a percentage of net sales.
Capital structure
Net debt excl. IFRS 16	Interest-bearing liabilities excluding leasing liabilities acc. to IFRS 16 less cash and equivalents and financial assets.
Net debt/equity ratio excl. IFRS 16	Net debt excl. IFRS 16 divided by equity excl. IFRS 16.
Working capital	Inventories and current receivables less current liabilities, excluding provisions and interest-bearing liabilities.
Working capital (average)	Inventories and current receivables less current liabilities, excluding provisions and interest-bearing liabilities.This measure represents an average for each period based on published quarterly data.
Capital employed excl. IFRS 16	Equity excl. IFRS 16 plus interest-bearing liabilities excl. leasing liabilities acc. to IFRS 16.
Capital employed (average) excl. IFRS 16	Equity excl. IFRS 16 plus interest-bearing liabilities excl. leasing liabilities acc. to IFRS 16. This measure represents an average for each period based on published quarterly data.
Working capital tied-up	Average working capital, as a percentage of annually adjusted net sales.
Return on capital
Return on capital employed excl. IFRS 16	Annually adjusted operating result excl. IFRS 16, as a percentage of average capital employed excl. IFRS 16.
Per share data
Earnings per share	Profit/loss for the period divided by the average number of shares (before and after dilution) outstanding during the period.
Equity per share	Equity divided by the number of shares outstanding at the end of the period.
Cash flow per share from operating activities	Cash flow from operating activities divided by the average number of shares for the period.
Shares outstanding at the end of the period	Shares outstanding at the end of the period adjusted for rights issues and share splits.
Average number of shares	Weighted average number of shares outstanding during the period, adjusted for rights issued and share splits.
Growth
Sales growth	Change in net sales from the preceding period in percent.
Other
Inventory gains and losses	The difference between the cost of goods sold at acquisition value and the cost of goods sold at replacement cost.

Please refer to the 2023 annual report for other definitions of key data.

About BE Group

A leading independent steel distributor in Northern Europe

BE Group is a leading independent steel distributor that stores and processes steel, stainless steel, and aluminium for customers primarily in the construction and manufacturing industries. Through the company's production services, customers can order customized steel components to optimize their production processes.

BE Group has approximately 640 employees and sales of SEK 5.3 billion in 2023. The headquarters is located in Malmö, Sweden.

BUSINESS IDEA

BE Group is an independent efficient distributor of steel, stainless steel, aluminum and value adding services to Nordic manufacturing and construction companies.

Number of employees

approx. 640

Net sales

SEK 5.3 billion

Sales Production Warehouse