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BE Group AB Interim / Quarterly Report 2021
3140_10-q_2021-04-20_582c64b3-6374-4082-b347-7d9a0981fe38.pdf
Interim / Quarterly Report
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First quarter 2021
- Net sales amounted to SEK 1,100 M (1,118)
- The underlying operating result increased to SEK 68 M (42)
- Inventory gains and losses amounted to SEK 18 M (-11) and items affecting comparability to SEK 0 M (-35)
- The operating result increased to SEK 86 M (-4)
- Result after tax increased to SEK 63 M (-23)
- Cash flow from operating activities amounted to SEK 60 M (93)
- Earnings per share increased to SEK 4.88 (-1.75)
| Results overview | 2021 Jan-Mar | 2020 Jan-Mar | Change | 2020 Full-year |
|---|---|---|---|---|
| Tonnage, thousands of tonnes | 88 | 90 | -2 | 307 |
| Net sales, SEK M | 1,100 | 1,118 | -18 | 3,672 |
| Underlying operating result, SEK M | 68 | 42 | 26 | 96 |
| Operating result, SEK M | 86 | -4 | 90 | 39 |
| Profit/loss for the period, SEK M | 63 | -23 | 86 | 4 |
| Earnings per share, SEK | 4.88 | -1.75 | 6.63 | 0.33 |
| Cash flow from operating activities, SEK M | 60 | 93 | -33 | 341 |
BE Group, which is listed on the Nasdaq Stockholm exchange, is a trading and service company in steel, stainless steel and aluminium. BE Group offers efficient distribution and value-adding production services to customers primarily in the construction and manufacturing industries. In 2020, the Group reported sales of SEK 3.7 billion. BE Group has approximately 630 employees, with Sweden and Finland as its largest markets. The head office is located in Malmö, Sweden. Read more about BE Group at www.begroup.com.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
"...and in the first quarter, the company is clearly showing its potential under more favorable market conditions"
Statement from the CEO
BE Group is having its best quarter in terms of earnings in more than ten years. In the previous year, BE Group showed that the possible descent in times of economic downturn had been reduced and in the first quarter, the company is clearly showing its potential under more favorable market conditions.
Sales in the first quarter of 2021 were in line with the same quarter last year, but the underlying operating result improved considerably and ended up at SEK 68 M (42). The background to this is higher gross margin and lower costs.
Rising steel prices during the quarter resulted in inventory gains of SEK 18 M, compared with inventory losses of SEK -11 M the same period last year, and the operating result amounted to SEK 86 M (-4). However, it should be noted that the operating result in the first quarter of 2020 was impacted by items affecting comparability of SEK -35 M concerning the centralization of the warehouse and production to Norrköping and closure of the warehouse in Malmö.
Continued recovery
The market is continuing to gradually recover and material prices that rose quickly and considerably at the end of last year has continued to rise during the quarter. In the main markets, the recovery is clear in both the construction and manufacturing industry. Our hope is that the pandemic is beginning to near its end, but the uncertainty about how it may affect 2021 remains.
Steel price trend
After a long period of somewhat low steel prices, they are now perceived by many to be high, but the steel producers would probably call today's prices more long-term sustainable.
European suppliers of automotive related products are fully booked into the third quarter and the alternative to importing steel to Europe is limited due to better prices and greater need outside Europe. This means rising steel prices in the second quarter and possibly also in the third quarter. Of course, this is on condition that the automotive industry utilizes its allocations.
BE Group is monitoring the market development carefully and making continuous adjustments.
Future outlook
The work of building a stable and long-term profitable company is continuing and in times when things are going well, it is important to not get comfortable and relax. After a number of years of scrimping and structural changes, the word comfortable is fortunately not a part of the company's DNA. Focus right now is on smaller and recurring improvements in every part of the company. The primary aim is to improve the customers' experience of doing business with us. Among other things, this is about expertise, delivery accuracy, offering and availability. The working name is simply customer experience.
Peter Andersson
President and CEO
| Bridge 2020-2021 operating result SEK M | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| Operating result 2020 | -4 | 21 | 4 | 18 |
| Reversal of inventory gains (-)/losses (+) | 11 | 2 | 10 | -6 |
| Items affecting comparability | 35 | 5 | - | - |
| Underlying operating result 2020 | 42 | 28 | 14 | 12 |
| Change in sales | -3 | - | - | - |
| Change in underlying gross margin | 16 | - | - | - |
| Change in overhead costs | 13 | - | - | - |
| Underlying operating result 2021 | 68 | - | - | - |
| Reversal of inventory gains (+)/losses (-) | 18 | - | - | - |
| Items affecting comparability | - | - | - | - |
| Operating result 2021 | 86 | - | - | - |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
Comments on the report
First quarter
Consolidated net sales for the period decreased by 2 percent compared to last year, amounting to SEK 1,100 M (1,118). The decrease is mainly explained by negative currency effects and slightly lower tonnage. The market recovery that occurred during the fourth quarter last year, continued in the first quarter of this year within the construction as well as manufacturing industry.
Higher steel prices and inventory gains contributed to an increased gross profit of SEK 207 M (170) and also resulted in a stronger gross margin compared to last year of 18.9 percent (15.2). The operating result increased to SEK 86 M (-4), corresponding to an operating margin of 7.8 percent (-0.4). The operating result for the first quarter 2020 was impacted by items affecting comparability of SEK -35 M. Adjusted for inventory gains and losses of SEK 18 M (-11) and items affecting comparability of SEK 0 M (-35), the underlying operating result increased to SEK 68 M (42). The underlying operating margin during the period increased to 6.1 percent (3.8). The higher underlying result is mainly explained by an improved gross margin and lower costs.
Covid-19 summary
The full scope and duration of the on-going pandemic are not yet known, which means, as previously reported, that it is not possible to fully quantify its future impact on BE Group. The uncertain market situation has led BE Group to take several measures necessary to mitigate the effects of Covid-19. This primarily concerned the operations in Sweden and the company made use of Government grants up until the end of February 2021, such as the introduction of short-term lay-offs, for example. Government grants linked to Covid-19 contributed around SEK 1 M during the first quarter. These grants are recognized as cost-reductions of the items the grants pertains to. The previous granted deferral of tax payments of approximately SEK 30 M will be refunded in the beginning of the second quarter 2021. All of the companies in the Group focus extensively on cost control, savings and efficiency enhancements and report developments to Group Management weekly.
BE Group is monitoring the development closely and is prepared to take further actions to reduce the negative impact on the business. The company acts in accordance with decisions and recommendations from governments and authorities in the respective markets and with the health and well-being of its employees as a top priority.
THE GROUP'S SALES GROWTH AND UNDERLYING OPERATING RESULT PER QUARTER
THE GROUP'S GROSS MARGIN AND GROSS PROFIT PER QUARTER
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
BUSINESS AREA SWEDEN & POLAND
The business area includes the Group's operations in Sweden consisting of the companies BE Group Sverige and Lecor Stålteknik, as well as the Polish operation BE Group Poland.
First quarter
Net sales decreased by 1 percent in the first quarter compared to last year and amounted to SEK 550 M (558). The slightly lower sales is explained by a decrease in tonnage by 5 percent at the same time as price and mix effects contributed positively by 4 percent. The operating result increased to SEK 36 M (-24). Adjusted for inventory gains and losses of SEK 12 M (-6) and items affecting comparability of SEK 0 M (-35), the underlying operating result increased to SEK 24 M (16).
BE Group Sverige delivered a stronger underlying operating result compared to last year. In the wake of the pandemic, tonnage decreased but was compensated by an increased gross margin through higher steel prices, inventory gains and a lower costs. The recovery within the automotive industry continued to be strong and the demand from the mining industry as well as subcontractors to the energy sector increased.
In the Polish operations and Lecor Stålteknik, profitability declined as a result of decreased volume. Our joint venture AMBE provided an increased operating result compared to last year, despite limited material availability, through higher steel prices and improved gross margin.
BUSINESS AREA SWEDEN & POLAND, SALES GROWTH AND UNDERLYING OPERATING RESULT PER QUARTER
4
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
BUSINESS AREA FINLAND & BALTICS
The business area includes the Group's operations in Finland and the three Baltic countries.
First quarter
Net sales decreased by 1 percent in the first quarter compared to last year and amounted to SEK 556 M (562). Tonnage was unchanged while positive price and mix effects of 4 percent was counteracted by negative currency effects of 5 percent. The operating result increased to SEK 52 M (23) mainly due to a strong development in the Finnish operations. Adjusted for inventory gains and losses of SEK 6 M (-6), the underlying operating result increased to SEK 46 M (29).
Tonnage decreased somewhat in the Finnish operations, despite this they delivered increased net sales and gross margin and a very strong underlying result compared to last year. This was achieved through higher steel prices, proactive pricing and lower costs. There has been a gradual increase in demand mainly from the manufacturing industry.
The Baltic operations showed positive profitability through increased volume.
BUSINESS AREA FINLAND & BALTICS
SALES GROWTH AND UNDERLYING
OPERATING RESULT PER QUARTER
SEK M
50
40
30
20
10
0
-10
-0
-0.13037
0.13037
0.13037
uEBIT, SEK M
Sales growth, %
5
Parent Company & consolidated items
Parent Company & consolidated items include the Parent Company, Group eliminations and also parts of the Group's operations undergoing restructuring. For additional information see the Annual Report for 2020.
The effects regarding IFRS 16 were reported under Parent Company & consolidated items and have not been allocated to the two business areas.
Sales for the first quarter of the Parent Company, BE Group AB (publ), amounted to SEK 22 M (24) during the period and derived from intra-Group services. These intra-Group services mainly include central expenses for IT and business systems, the subsidiaries' use of the BE Group brand 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 11 M (12), SEK 9 M (10) was allocated to the subsidiaries. The operating result amounted to SEK 11 M (13).
Net financial items for the quarter amounted to SEK 96 M (15) and were affected by Group-internal dividends. Profit before tax amounted to SEK 107 M (28) and profit after tax amounted to SEK 105 M (30). Investments in the Parent Company amounted to SEK 1 M (0). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 272 M (17).
Group
Net financial items and tax
The Group's consolidated net financial items in the first quarter amounted to SEK -8 M (-25), of which net interest amounted to SEK -4 M (-5). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -2 M (-3).
Taxes for the first quarter amounted to SEK -15 M (6). Profit after tax amounted to SEK 63 M (-23).
Cash flow
The Group's consolidated working capital amounted to SEK 376 M (520) at the end of the period and the average working capital tied-up for the first quarter was 8.2 percent (11.9). Cash flow from operating activities amounted to SEK 60 M (93) during the quarter. Cash flow from investing activities amounted to SEK -3 M (-7). Cash flow after investments thus amounted to SEK 57 M (86).
Financial position and liquidity
At the end of the period, consolidated cash and cash equivalents, including overdraft facilities, amounted to SEK 442 M (195) and the interest-bearing net debt excl. IFRS 16 was SEK 124 M (322). Equity amounted to SEK 981 M (937) at the end of the period.
Organization, structure and employees
The number of employees amounted to 609 compared to 635 at the same time last year. The average number of employees during the year amounted to 613 (637).
THE GROUP'S CASH FLOW FROM OPERATING ACTIVITIES, SEK M
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
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.
Annual General Meeting 2021
BE Group's Annual General Meeting will take place on April 20, 2021, in Malmö, Sweden. Due to the coronavirus and to curb the spread of the virus, the Board of Directors has decided that the annual general meeting should be conducted by way of postal vote pursuant to temporary legislation being in effect in 2021. This means that the annual general meeting will be held without the physical presence of shareholders, representatives or third parties. The shareholders will only be able to exercise their voting rights by postal voting. Please visit www.begroup.com for more information.
Proposed dividend
According to BE Group's dividend policy, the Group will distribute at least 50 percent of profit after tax, over time. Dividends shall be distributed taking BE Group's financial position and prospects into account. The Board of Directors proposes that no dividend be paid for the financial year of 2020.
Proposed composition of the Board
The Nominating Committee has proposed re-election of Board members Carina Andersson, Lars Olof Nilsson, Mats O Paulsson, Petter Stillström and Jörgen Zahlin. It is proposed that Jörgen Zahlin be re-elected as Chairman.
Proposal for election of auditors
Based on the recommendation of the Audit Committee, the Nominating Committee proposes re-election of the auditing firm Öhrlings PricewaterhouseCoopers AB as the Company's auditor.
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 2020 Annual Report, which was published in March 2021. For risks related to the consequences of Covid-19, see below.
Risks related to Covid-19 and measures taken
It is not possible to fully quantify the impact that Covid-19 may have on the company. BE Group is continuing to monitor developments closely and is adjusting the measures that have been implemented in the Group in the short term to counteract the effects, such as Government grants, renegotiated agreements and increased control of working capital and costs. The company acts in accordance with decisions and recommendations from governments and authorities in the respective markets and with the health and well-being of its employees as a top priority.
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.
Government grants are reported at fair value when there is reasonable assurance that the grant will be received and the conditions associated with the grant will be met. Government grants relating to costs are reported in the income statement. During the period, grants received have been reported as cost reductions.
Refer to the 2020 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 2021 have had no significant effect on the financial reporting.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
Future information
Future reporting dates
BE Group AB (publ) intends to publish financial information on the following dates:
- The Interim Report for January–June 2021 will be published on July 15, 2021.
- The Interim Report for January–September 2021 will be published on October 21, 2021.
- The Year-end Report for 2021 will be published in January 2022.
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: [email protected].
Malmö, April 20, 2021
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: [email protected]
Christoffer Franzén, CFO
Tel: +46 (0)705 46 90 05, e-mail: [email protected]
BE Group AB (publ), Box 225, 201 22 Malmö, Sweden; Street address: Krangatan 4B
Corp. Reg. No: 556578-4724, Tel: +46 (0)40 38 42 00
[email protected], www.begroup.com
This report has not been reviewed by the company’s auditors.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
Condensed consolidated income statement
| (SEK M) | Note | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months |
|---|---|---|---|---|---|
| Net sales | 1,100 | 1,118 | 3,672 | 3,654 | |
| Cost of goods sold | 1 | -893 | -948 | -3,124 | -3,069 |
| Gross profit | 207 | 170 | 548 | 585 | |
| Selling expenses | 1 | -100 | -105 | -371 | -366 |
| Administrative expenses | 1 | -26 | -31 | -110 | -105 |
| Other operating income and expenses | 2 | -1 | -39 | -35 | 3 |
| Participation in joint venture | 6 | 1 | 7 | 12 | |
| Operating profit/loss | 86 | -4 | 39 | 129 | |
| Financial items | -8 | -25 | -28 | -11 | |
| Profit/loss before tax | 78 | -29 | 11 | 118 | |
| Tax | -15 | 6 | -7 | -28 | |
| Profit/loss for the period | 63 | -23 | 4 | 90 | |
| Earnings per share | 4.88 | -1.75 | 0.33 | 6.96 | |
| Earnings per share before and after dilution | 4.88 | -1.75 | 0.33 | 6.96 |
Consolidated statement of comprehensive income
| (SEK M) | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Profit/loss for the period | 63 | -23 | 4 | 90 |
| Other comprehensive income | ||||
| Items that have, or may be, reclassified to profit/loss for the period | ||||
| Translation differences | 13 | 37 | -21 | -46 |
| Hedging of net investments in foreign subsidiaries | 0 | 0 | 0 | 0 |
| Tax attributable to items in other comprehensive income | 0 | 0 | 0 | 0 |
| Total other comprehensive income | 13 | 37 | -21 | -46 |
| Comprehensive income for the period | 76 | 14 | -17 | 44 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
Condensed consolidated balance sheet
| (SEK M) | Note | 2021 | 2020 | 2020 |
|---|---|---|---|---|
| Mar 31 | Mar 31 | Dec 31 | ||
| Goodwill | 562 | 582 | 557 | |
| Other intangible assets | 4 | 6 | 5 | |
| Tangible assets | 88 | 93 | 89 | |
| Right of use assets | 519 | 565 | 541 | |
| Investment in joint venture | 123 | 112 | 117 | |
| Financial assets | 0 | 0 | 0 | |
| Deferred tax assets | 22 | 31 | 24 | |
| Total non-current assets | 1,318 | 1,389 | 1,333 | |
| Inventories | 534 | 646 | 501 | |
| Accounts receivable | 615 | 583 | 376 | |
| Other receivables | 37 | 40 | 42 | |
| Cash and equivalents | 292 | 45 | 166 | |
| Total current assets | 1,478 | 1,314 | 1,085 | |
| Total assets | 3 | 2,796 | 2,703 | 2,418 |
| Equity | 981 | 937 | 905 | |
| Non-current interest-bearing liabilities | 414 | 362 | 321 | |
| Non-current leasing liabilities | 430 | 477 | 457 | |
| Provisions | 0 | 0 | 0 | |
| Deferred tax liability | 43 | 47 | 42 | |
| Total non-current liabilities | 887 | 886 | 820 | |
| Current interest-bearing liabilities | 2 | 5 | 1 | |
| Current leasing liabilities | 89 | 90 | 84 | |
| Accounts payable | 598 | 568 | 414 | |
| Other current liabilities | 212 | 181 | 162 | |
| Other current provisions | 27 | 36 | 32 | |
| Total current liabilities | 928 | 880 | 693 | |
| Total equity and liabilities | 3 | 2,796 | 2,703 | 2,418 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
Condensed consolidated cash-flow statement
| (SEK M) | 2021
Jan-Mar | 2020
Jan-Mar | 2020
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- |
| Operating result | 86 | -4 | 39 | 129 |
| Adjustment for non-cash items | 21 | 59 | 134 | 96 |
| – of which, amortization/depreciation | 30 | 29 | 115 | 116 |
| – of which, other items | -9 | 30 | 19 | -20 |
| Interest paid/received and other financial items | -4 | -6 | -21 | -19 |
| Income tax paid | -2 | -3 | -10 | -9 |
| Change in working capital | -41 | 47 | 199 | 111 |
| Cash flow from operating activities | 60 | 93 | 341 | 308 |
| Investments in intangible assets | 0 | 0 | 0 | 0 |
| Investments in tangible assets | -3 | -7 | -21 | -17 |
| Divestments of tangible assets | 0 | 0 | 0 | 0 |
| Other cash flow from investing activities | 0 | 0 | 0 | 0 |
| Cash flow after investments | 57 | 86 | 320 | 291 |
| Cash flow from financing activities | 66 | -213 | -318 | -39 |
| Cash flow for the period | 123 | -127 | 2 | 252 |
| Exchange-rate difference in cash and equivalents | 3 | 4 | -4 | -5 |
| Change in cash and equivalents | 126 | -123 | -2 | 247 |
Condensed statement of changes in equity
| (SEK M) | 2021
Jan-Mar | 2020
Jan-Mar | 2020
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- |
| Equity at beginning of period | 905 | 922 | 922 | 937 |
| Comprehensive income for the period | 76 | 14 | -17 | 44 |
| Dividend | - | - | - | - |
| Equity at end of period | 981 | 937 | 905 | 981 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
Note 1 Amortizations and depreciations
| (SEK M) | 2021
Jan-Mar | 2020
Jan-Mar | 2020
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- |
| Amortization of intangible assets | 1 | 1 | 3 | 3 |
| Depreciation of tangible assets | 6 | 6 | 23 | 23 |
| Depreciation of right of use assets | 23 | 22 | 89 | 90 |
| Total amortizations and depreciations | 30 | 29 | 115 | 116 |
Note 2 Items affecting comparability
| (SEK M) | 2021
Jan-Mar | 2020
Jan-Mar | 2020
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- |
| Restructuring expenses | - | -35 | -40 | -5 |
| Total items affecting comparability | - | -35 | -40 | -5 |
Note 3 Valuation of financial assets and liabilities
In all material respects fair value coincides with the carrying amount in the balance sheet for financial assets and liabilities.
The assessment of the fair value of the financial assets has been carried out in accordance with level 2, with the exception of cash and equivalents, which are valued in accordance with level 1. For additional information, see Note 31 in the 2020 Annual Report. No material changes have taken place in relation to the valuation as per December 31.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
Segment reporting
Net sales by business area
| (SEK M) | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 550 | 558 | 1,782 | 1,774 |
| Finland & Baltics | 556 | 562 | 1,896 | 1,890 |
| Parent Company & consolidated items | -6 | -2 | -6 | -10 |
| Group | 1,100 | 1,118 | 3,672 | 3,654 |
Net sales by business area and product group
| (SEK M) | Sweden & Poland | Finland & Baltics | Parent company & consolidated items | Total | |
|---|---|---|---|---|---|
| 2020 Jan-Mar | 2020 Jan-Mar | 2020 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | |
| Long steel products | 246 | 149 | 0 | 395 | 1,363 |
| Flat steel products | 175 | 275 | 0 | 450 | 1,428 |
| Stainless steel | 92 | 101 | 0 | 193 | 611 |
| Aluminium | 19 | 32 | 0 | 51 | 170 |
| Other | 26 | 5 | -2 | 29 | 100 |
| Total | 558 | 562 | -2 | 1,118 | 3,672 |
| (SEK M) | Sweden & Poland | Finland & Baltics | Parent company & consolidated items | Total | |
| --- | --- | --- | --- | --- | --- |
| 2021 Jan-Mar | 2021 Jan-Mar | 2021 Jan-Mar | 2021 Jan-Mar | Rolling 12 months | |
| Long steel products | 265 | 150 | 0 | 415 | 1,383 |
| Flat steel products | 163 | 282 | 0 | 445 | 1,423 |
| Stainless steel | 81 | 86 | 0 | 167 | 585 |
| Aluminium | 18 | 30 | 0 | 48 | 167 |
| Other | 23 | 8 | -6 | 25 | 96 |
| Total | 550 | 556 | -6 | 1,100 | 3,654 |
Net sales by country based on customer's domicile
| (SEK M) | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden | 539 | 542 | 1,743 | 1,740 |
| Finland | 482 | 505 | 1,681 | 1,658 |
| Other | 79 | 71 | 248 | 256 |
| Group | 1,100 | 1,118 | 3,672 | 3,654 |
Shipped tonnage per segment
| (Thousands of thonnes) | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 41 | 44 | 144 | 141 |
| Finland & Baltics | 47 | 47 | 164 | 164 |
| Parent Company & consolidated items | 0 | -1 | -1 | 0 |
| Group | 88 | 90 | 307 | 305 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
Operating result (EBIT) per segment
| (SEK M) | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 36 | -24 | -14 | 46 |
| Finland & Baltics | 52 | 23 | 63 | 92 |
| Parent Company & consolidated items | -2 | -3 | -10 | -9 |
| Group | 86 | -4 | 39 | 129 |
Operating margin per segment
| 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months | |
|---|---|---|---|---|
| Sweden & Poland | 6.6% | -4.4% | -0.8% | 2.6% |
| Finland & Baltics | 9.3% | 4.1% | 3.3% | 4.9% |
| Parent Company & consolidated items | neg | neg | neg | neg |
| Group | 7.8% | -0.4% | 1.1% | 3.5% |
Underlying operating result (uEBIT) per segment 1)
| (SEK M) | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 24 | 16 | 32 | 40 |
| Finland & Baltics | 46 | 29 | 74 | 91 |
| Parent Company & consolidated items | -2 | -3 | -10 | -9 |
| Group | 68 | 42 | 96 | 122 |
Underlying operating margin per segment 2)
| 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months | |
|---|---|---|---|---|
| Sweden & Poland | 4.4% | 2.8% | 1.8% | 2.3% |
| Finland & Baltics | 8.2% | 5.1% | 3.9% | 4.8% |
| Parent Company & consolidated items | neg | neg | neg | neg |
| Group | 6.1% | 3.8% | 2.6% | 3.3% |
Depreciation per segment
| (SEK M) | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 3 | 3 | 13 | 13 |
| Finland & Baltics | 3 | 3 | 13 | 13 |
| Parent Company & consolidated items | 24 | 23 | 89 | 90 |
| Group | 30 | 29 | 115 | 116 |
Investments in tangible and intangible assets per segment
| (SEK M) | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 1 | 7 | 17 | 11 |
| Finland & Baltics | 1 | 0 | 2 | 3 |
| Parent Company & consolidated items | 1 | 0 | 2 | 3 |
| Group | 3 | 7 | 21 | 17 |
1) 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.
2) Underlying operating result (uEBIT) as a percentage of net sales.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
Key data
| (SEK M unless otherwise stated) | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Net sales | 1,100 | 1,118 | 3,672 | 3,654 |
| Earnings measurements | ||||
| Gross result | 207 | 170 | 548 | 585 |
| Underlying gross result | 193 | 180 | 563 | 576 |
| Operating result (EBIT) | 86 | -4 | 39 | 129 |
| Underlying operating result (uEBIT) | 68 | 42 | 96 | 122 |
| Margin measurements | ||||
| Gross margin | 18.9% | 15.2% | 14.9% | 16.0% |
| Underlying gross margin | 17.5% | 16.1% | 15.3% | 15.8% |
| Operating margin | 7.8% | -0.4% | 1.1% | 3.5% |
| Underlying operating margin | 6.1% | 3.8% | 2.6% | 3.3% |
| Capital structure | ||||
| Net debt excl. IFRS 16 1) | 124 | 322 | 156 | 124 |
| Net debt/equity ratio excl. IFRS 16 1) | 13% | 34% | 17% | 13% |
| Working capital at end of period | 376 | 520 | 343 | 376 |
| Working capital (average) | 360 | 534 | 468 | 434 |
| Capital employed (average) excl. IFRS 16 1) | 1,318 | 1,389 | 1,305 | 1,292 |
| Working capital tied-up | 8.2% | 11.9% | 12.8% | 11.9% |
| Return | ||||
| Return on capital employed excl. IFRS 16 1) | 25.1% | -1.2% | 2.3% | 9.2% |
| Per share data | ||||
| Earnings per share (SEK) | 4.88 | -1.75 | 0.33 | 6.96 |
| Earnings per share after dilution (SEK) | 4.88 | -1.75 | 0.33 | 6.96 |
| Equity per share (SEK) | 75.55 | 72.19 | 69.73 | 75.55 |
| Cash flow from operating activities per share (SEK) | 4.62 | 7.18 | 26.28 | 23.72 |
| Shares outstanding at period end (thousands) | 12,983 | 12,983 | 12,983 | 12,983 |
| Number of shares (thousands) before and after dilution | 12,983 | 12,983 | 12,983 | 12,983 |
| Growth | ||||
| Sales growth | -2% | -7% | -16% | -14% |
| - of which organic tonnage growth | -3% | -5% | -10% | -9% |
| - of which price and mix changes | 4% | -3% | -5% | -4% |
| - of which currency effects | -3% | 1% | -1% | -1% |
| Other | ||||
| Average number of employees | 613 | 637 | 633 | 633 |
| Inventory gains and losses | 18 | -11 | -17 | 12 |
| Shipped tonnage (thousands of tonnes) | 88 | 90 | 307 | 305 |
1) 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.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
Condensed parent company income statement
| (SEK M) | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Net sales | 22 | 24 | 79 | 77 |
| Administrative expenses | -11 | -12 | -42 | -41 |
| Other operating income and expenses | 0 | 1 | 16 | 15 |
| Operating profit/loss | 11 | 13 | 53 | 51 |
| Financial items | 96 | 15 | 37 | 118 |
| Profit/loss after financial items | 107 | 28 | 90 | 169 |
| Appropriations | – | – | -15 | -15 |
| Profit/loss before tax | 107 | 28 | 75 | 154 |
| Tax | -2 | 2 | -2 | -6 |
| Profit/loss for the period, or comprehensive income for the period | 105 | 30 | 73 | 148 |
Condensed parent company balance sheet
| (SEK M) | 2021 Mar 31 | 2020 Mar 31 | 2020 Dec 31 |
|---|---|---|---|
| Intangible assets | 1 | 1 | 1 |
| Tangible assets | 3 | 0 | 2 |
| Financial assets | 905 | 914 | 906 |
| Total non-current assets | 909 | 915 | 909 |
| Current receivables | 91 | 206 | 108 |
| Cash and equivalents | 272 | 17 | 152 |
| Total current assets | 363 | 223 | 260 |
| Total assets | 1,272 | 1,138 | 1,169 |
| Equity | 820 | 672 | 715 |
| Non-current liabilities | 210 | 350 | 305 |
| Current liabilities | 242 | 116 | 149 |
| Total equity and liabilities | 1,272 | 1,138 | 1,169 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
Key data – multi-quarter summary
| (SEK M unless otherwise stated) | 2021 Jan-Mar | 2020 Oct-Dec | 2020 Jul-Sep | 2020 Apr-Jun | 2020 Jan-Mar | 2019 Oct-Dec | 2019 Jul-Sep | 2019 Apr-Jun | 2019 Jan-Mar |
|---|---|---|---|---|---|---|---|---|---|
| Net sales | 1,100 | 875 | 744 | 935 | 1,118 | 984 | 977 | 1,193 | 1,205 |
| Earnings measurements | |||||||||
| Gross result | 207 | 135 | 105 | 138 | 170 | 138 | 137 | 164 | 166 |
| Underlying gross result | 193 | 129 | 114 | 140 | 180 | 138 | 136 | 163 | 172 |
| Operating result (EBIT) | 86 | 18 | 4 | 21 | -4 | 8 | 14 | 32 | 34 |
| Underlying operating result (uEBIT) | 68 | 12 | 14 | 28 | 42 | 9 | 13 | 32 | 40 |
| Margin measurements | |||||||||
| Gross margin | 18.9% | 15.5% | 14.1% | 14.7% | 15.2% | 14.0% | 14.0% | 13.8% | 13.8% |
| Underlying gross margin | 17.5% | 14.8% | 15.3% | 14.9% | 16.1% | 14.1% | 13.9% | 13.7% | 14.2% |
| Operating margin | 7.8% | 2.1% | 0.5% | 2.2% | -0.4% | 0.8% | 1.5% | 2.7% | 2.8% |
| Underlying operating margin | 6.1% | 1.4% | 1.8% | 3.0% | 3.8% | 0.9% | 1.4% | 2.6% | 3.3% |
| Capital structure | |||||||||
| Net debt excl. IFRS 16 1) | 124 | 156 | 281 | 254 | 322 | 373 | 431 | 402 | 418 |
| Net debt/equity ratio excl. IFRS 16 1) | 13% | 17% | 30% | 27% | 34% | 40% | 46% | 44% | 45% |
| Working capital at end of period | 376 | 343 | 474 | 455 | 520 | 549 | 608 | 553 | 568 |
| Working capital (average) | 360 | 409 | 464 | 487 | 534 | 578 | 580 | 560 | 570 |
| Capital employed (average) excl. IFRS 16 1) | 1,318 | 1,272 | 1,258 | 1,258 | 1,389 | 1,463 | 1,477 | 1,481 | 1,459 |
| Working capital tied-up | 8.2% | 11.7% | 15.6% | 13.0% | 11.9% | 14.7% | 14.8% | 11.7% | 11.8% |
| Return | |||||||||
| Return on capital employed excl. IFRS 16 1) | 25.1% | 5.1% | 0.5% | 5.8% | -1.2% | 1.5% | 4.0% | 8.2% | 9.2% |
| Per share data | |||||||||
| Earnings per share (SEK) | 4.88 | 1.06 | -0.32 | 1.34 | -1.75 | 0.57 | 0.30 | 1.44 | 1.56 |
| Earnings per share after dilution (SEK) | 4.88 | 1.06 | -0.32 | 1.34 | -1.75 | 0.57 | 0.30 | 1.44 | 1.56 |
| Equity per share (SEK) | 75.55 | 69.73 | 70.87 | 70.92 | 72.19 | 71.05 | 71.80 | 71.00 | 71.03 |
| Cash flow from operating activities per share (SEK) | 4.62 | 11.72 | 0.06 | 7.32 | 7.18 | 6.50 | -1.03 | 5.11 | 4.79 |
| Shares outstanding at period end (thousands) | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 |
| Number of shares (thousands) before and after dilution | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 |
| Growth | |||||||||
| Sales growth | -2% | -11% | -24% | -22% | -7% | -15% | -12% | -9% | -2% |
| - of which organic tonnage growth | -3% | -1% | -16% | -17% | -5% | -17% | -11% | -9% | -2% |
| - of which price and mix changes | 4% | -8% | -6% | -5% | -3% | 1% | -2% | -1% | -2% |
| - of which currency effects | -3% | -2% | -2% | 0% | 1% | 1% | 1% | 1% | 2% |
| Other | |||||||||
| Average number of employees | 613 | 625 | 636 | 637 | 637 | 644 | 646 | 652 | 664 |
| Inventory gains and losses | 18 | 6 | -10 | -2 | -11 | -1 | 1 | 0 | -6 |
| Shipped tonnage (thousands of tonnes) | 88 | 76 | 64 | 77 | 90 | 77 | 75 | 92 | 96 |
1) 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.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
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)
| (SEK M) | 2021 Jan-Mar | 2020 Jan-Mar | 2020 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Operating result | 86 | -4 | 39 | 129 |
| Reversal of inventory gains (-)/losses (+) | -18 | 11 | 17 | -12 |
| Adjustment for items affecting comparability | – | 35 | 40 | 5 |
| Group | 68 | 42 | 96 | 122 |
Working capital
| (SEK M) | 2021 Mar 31 | 2020 Mar 31 | 2020 Dec 31 |
|---|---|---|---|
| Inventories | 534 | 646 | 501 |
| Accounts receivable | 615 | 583 | 376 |
| Other receivables | 37 | 40 | 42 |
| Deduction accounts payable | -598 | -568 | -414 |
| Deduction other current liabilities | -212 | -181 | -162 |
| Rounding | – | – | – |
| Group | 376 | 520 | 343 |
Average working capital is an average for each period based on quarterly data.
Net debt excl. IFRS 16
| (SEK M) | 2021 Mar 31 | 2020 Mar 31 | 2020 Dec 31 |
|---|---|---|---|
| Non-current interest-bearing liabilities and leasing liabilities | 844 | 839 | 778 |
| Current interest-bearing liabilities and leasing liabilities | 91 | 95 | 85 |
| Deduction leasing liabilities | -519 | -567 | -541 |
| Deduction financial assets | 0 | 0 | 0 |
| Deduction cash and equivalents | -292 | -45 | -166 |
| Rounding | – | – | – |
| Group | 124 | 322 | 156 |
Net debt/equity ratio excl. IFRS 16 is calculated as net debt excl. IFRS 16 divided by Equity.
Capital employed excl. IFRS 16
| (SEK M) | 2021 Mar 31 | 2020 Mar 31 | 2020 Dec 31 |
|---|---|---|---|
| Equity excl. IFRS 16 | 986 | 942 | 912 |
| Non-current interest-bearing liabilities and leasing liabilities | 844 | 839 | 778 |
| Current interest-bearing liabilities and leasing liabilities | 91 | 95 | 85 |
| Deduction leasing liabilities | -519 | -567 | -541 |
| Rounding | 1 | – | – |
| Group | 1,403 | 1,309 | 1,234 |
Average capital employed excl. IFRS 16 is an average for each period based on quarterly data.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
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 difficult 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 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 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 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 2020 annual report for other definitions of key data.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2021
About BE Group
A leading steel service company in Northern Europe
BE Group is a trading and service company in the steel and metal industry. Customers mainly operate in the construction and manufacturing industries in Sweden, Finland and the Baltic States, where BE Group is one of the market's leading actors.
With extensive expertise and efficient processes in purchasing, logistics and production, BE Group offers inventory sales, production service and direct deliveries to customers based on their specific needs for steel and metal products. BE Group has approximately 630 employees and sales of SEK 3.7 billion in 2020. The head office 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. 630
Net sales
SEK 3.7
billion
20