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BE Group AB Interim / Quarterly Report 2021
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Interim / Quarterly Report
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BE GROUP
YEAR-END REPORT
BE Group AB (publ)
January – December 2021
Fourth quarter 2021
- Net sales increased by 73% to SEK 1,510 M (875)
- The underlying operating result increased to SEK 135 M (12)
- Inventory gains and losses amounted to SEK 23 M (6)
- The operating result increased to SEK 158 M (18)
- Result after tax increased to SEK 130 M (13)
- Cash flow from operating activities amounted to SEK -115 M (152)
- Earnings per share increased to SEK 10.00 (1.06)
Full-year 2021
- Net sales increased by 47% to SEK 5,388 M (3,672)
- The underlying operating result increased to SEK 529 M (96)
- Inventory gains and losses amounted to SEK 92 M (-17) and items affecting comparability to SEK 0 M (-40)
- The operating result increased to SEK 621 M (39)
- Result after tax increased to SEK 495 M (4)
- Cash flow from operating activities amounted to SEK 32 M (341)
- Earnings per share increased to SEK 38.10 (0.33)
- The Board of Directors proposes dividend of SEK 12 (-) per share for the financial year of 2021
| Results overview | 2021
Oct-Dec | 2020
Oct-Dec | Change | 2021
Jan-Dec | 2020
Jan-Dec | Change |
| --- | --- | --- | --- | --- | --- | --- |
| Tonnage, thousands of tonnes | 79 | 76 | 3 | 342 | 307 | 35 |
| Net sales, SEK M | 1,510 | 875 | 635 | 5,388 | 3,672 | 1,716 |
| Underlying operating result, SEK M | 135 | 12 | 123 | 529 | 96 | 433 |
| Operating result, SEK M | 158 | 18 | 140 | 621 | 39 | 582 |
| Profit/loss for the period, SEK M | 130 | 13 | 117 | 495 | 4 | 491 |
| Earnings per share, SEK | 10.00 | 1.06 | 8.94 | 38.10 | 0.33 | 37.77 |
| Cash flow from operating activities, SEK M | -115 | 152 | -267 | 32 | 341 | -309 |
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 2021, the Group reported sales of SEK 5.4 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 / Year-end report January-December 2021
"Continued good demand combined with high steel prices and increased gross margin"
Statement from the CEO
BE Group again delivered a strong quarter thanks to continued good demand combined with high steel prices and increased gross margin. The operating margin amounted to 10.4% and is by far the best operating margin for the fourth quarter since the stock exchange listing in 2006.
Compared to the corresponding quarter last year, sales increased by 73% and the underlying operating result increased to SEK 135 M (12). The rising steel prices led to inventory gains of SEK 23 M (6) and the operating result increased to SEK 158 M (18).
As mentioned in the report for the third quarter, we saw some marginal contraction in the fourth quarter as prices stabilized and more expensive, recently purchased material was sold.
Continued recovery
A certain slowdown in demand occurred at the end of the quarter as a result of lack of components within the manufacturing and automotive industries and that December had less construction projects compared to 2020. In total, however, the market recovered continuously during the year in both the construction and manufacturing industries. Measured in tonnage, Finland is, both for the fourth quarter and for the full year, slightly above 2018 which was a good year in terms of tonnage. Sweden is slightly below, but there are clear signals from both large and medium-sized customers of higher demand and increased forecasts for 2022.
Steel price trend
Steel prices continued to rise in the fourth quarter, but not at all at the same pace as earlier in the year. In total, the opening prices in the first quarter are somewhat balanced. Some product types are going up while others are going down. A continued generally high price level is supported by high costs for input materials and high energy prices together with strong demand where customers have real needs and a good market for their products. In the longer term, the transition to sustainable steel production will also require more sustainable prices for the steel producers.
Future outlook
The ambition is to build further on a good company that is profitable in the long term and to create a stable foundation for the future. As previously mentioned, the work takes place mainly around two focus areas. Sales culture and Customer experience.
Another focus area is sustainability and in the fourth quarter, BE Group announced that a letter of intent was signed with H2 Green Steel regarding cooperation and distribution of fossil-free steel in the Nordic market beginning in 2025. As an independent steel distributor, we conduct discussions with multiple steel producers throughout Europe and already today 100% carbon offset steel is part of the offering to the customers.
We have a good history in our work with sustainability, but in the future the work will be further intensified in various ways. An important part of the sustainability work is helping small and medium-sized companies, which usually do not buy steel in large quantities, to buy sustainable steel at competitive prices.
Peter Andersson
President and CEO
| Bridge 2020-2021 operating result SEK M | Q1 | Q2 | Q3 | Q4 | Jan-Dec |
|---|---|---|---|---|---|
| Operating result 2020 | -4 | 21 | 4 | 18 | 39 |
| Reversal of inventory gains (-)/losses (+) | 11 | 2 | 10 | -6 | 17 |
| Items affecting comparability | 35 | 5 | - | - | 40 |
| Underlying operating result 2020 | 42 | 28 | 14 | 12 | 96 |
| Change in sales | -3 | 70 | 97 | 94 | 258 |
| Change in underlying gross margin | 16 | 66 | 90 | 46 | 218 |
| Change in overhead costs | 13 | -31 | -8 | -17 | -43 |
| Underlying operating result 2021 | 68 | 133 | 193 | 135 | 529 |
| Reversal of inventory gains (+)/losses (-) | 18 | 25 | 26 | 23 | 92 |
| Items affecting comparability | - | - | - | - | - |
| Operating result 2021 | 86 | 158 | 219 | 158 | 621 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2021
Comments on the report
Fourth quarter
The Group's consolidated net sales for the period increased by 73 percent compared to last year, amounting to SEK 1,510 M (875). The increase is explained by organic growth of 4 percent, positive price and mix effects of 70 percent and negative currency effects of -1 percent. The market continued to recover in the beginning of the fourth quarter, mainly within the manufacturing industry and OEM customers, in combination with continuous rising steel prices. A certain slowdown in demand occurred by the end of the quarter as a result of the lack of components within the manufacturing and automotive industries and that December contained fewer construction projects compared to 2020.
The gross profit increased to SEK 283 M (135) with a stronger gross margin compared to last year of 18.7 percent (15.5). The operating result increased to SEK 158 M (18), corresponding to an operating margin of 10.4 percent (2.1). Adjusted for inventory gains of SEK 23 M (6), the underlying operating result thus increased to SEK 135 M (12). The underlying operating margin during the period increased to 9.0 percent (1.4).
Full-year 2021
During the year, the Group's consolidated net sales increased by 47 percent compared to last year and amounted to SEK 5,388 M (3,672). Tonnage in business area Sweden & Poland increased by 14 percent compared to last year, while Finland & Baltics delivered 10 percent more. Net sales has also been positively affected by rising steel prices and mix effects of 38 percent and negative currency effects of -2 percent.
Gross profit increased to SEK 1,102 M (548) with a strong gross margin of 20.4 percent (14.9).
The operating result increased to SEK 621 M (39), corresponding to an operating margin of 11.5 percent (1.1). Adjusted for inventory gains and losses of SEK 92 M (-17) and items affecting comparability of SEK 0 M (-40), the underlying operating result increased to SEK 529 M (96). The underlying operating margin thus increased to 9.8 percent (2.6).
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 / Year-end report January-December 2021
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.
Fourth quarter
Net sales increased by 70 percent in the fourth quarter compared to last year and amounted to SEK 744 M (439). The higher sales is explained by an increase in tonnage by 5 percent at the same time as steel prices were higher. The operating result increased to SEK 96 M (7). Adjusted for inventory gains and losses of SEK 16 M (0), the underlying operating result increased to SEK 80 M (7).
The Swedish and Polish operations delivered a strong underlying operating result compared to last year. The result development is mainly explained by increased demand from OEM customers and steel structure suppliers, rising steel prices and positive mix effects. Also our joint venture AMBE provided a strong operating result as a result of increased demand and high prices on thin sheets and coils. Lecor Stålteknik improved profitability as a result of higher order intake and occupancy.
Full-year 2021
Net sales increased by 47 percent compared to last year, amounting to SEK 2,625 M (1,782). Sales growth is explained by increase in tonnage of 14 percent, higher steel prices and positive mix effects. Operating result increased to SEK 282 M (-14).
Adjusted for inventory gains and losses of SEK 61 M (-11) and items affecting comparability of SEK 0 M (-35), the underlying operating result increased to SEK 221 M (32). The recovery in demand was clear both within the construction and manufacturing industries.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2021
The business area includes the Group's operations in Finland and the three Baltic countries.
Fourth quarter
Compared to the fourth quarter last year, net sales increased by 77 percent to SEK 771 M (436). Sales growth is explained by an increase in tonnage by 4 percent and higher steel prices. The operating result increased to SEK 84 M (17). Adjusted for inventory gains of SEK 7 M (6), the underlying operating result improved to SEK 77 M (11).
The Finnish operations provided a strong underlying operating result compared to last year. The result development is explained by increased demand, higher steel prices, positive mix effects and increased gross margin.
The Baltic operations provided a positive result through higher steel prices and strengthened gross margin. The restructuring of the business that began last year was completed in the quarter.
Full-year 2021
Net sales increased by 47 percent compared to last year, amounting to SEK 2,790 M (1,896). The higher sales is explained by increase in tonnage of 10 percent, positive price and mix effects of 40 percent and negative currency effects of -3 percent. The operating result increased to SEK 370 M (63) and adjusted for inventory gains and losses of SEK 31 M (-6) and items affecting comparability of SEK 0 M (-5), the underlying operating result increased to SEK 339 M (74). The development is attributable to increased demand, positive price and mix effects and strengthened gross margin.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2021
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 fourth quarter of the Parent Company, BE Group AB (publ), amounted to SEK 39 M (7) 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 (10), SEK 8 M (4) was allocated to the subsidiaries. The operating result amounted to SEK 28 M (12) in the quarter. For the full-year, net sales amounted to SEK 104 M (79) and the operating result to SEK 60 M (53).
Net financial items for the quarter amounted to SEK 1 M (15). Profit before tax amounted to SEK 153 M (12) and profit after tax amounted to SEK 121 M (15). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 38 M (152).
Net financial items for the full-year amounted to SEK 98 M (37). Profit before tax amounted to SEK 282 M (75) and profit after tax was SEK 244 M (73). Investments in the Parent Company amounted to SEK 3 M (2).
Group
Net financial items and tax
The Group's consolidated net financial items in the fourth quarter amounted to SEK 0 M (1), of which net interest amounted to SEK -3 M (-4). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -2 M (-2). Net financial items for the full-year amounted to SEK -17 M (-28) and net interest to SEK -14 M (-18), of which SEK -10 M (-11) is related to leasing according to IFRS 16.
Taxes for the fourth quarter amounted to SEK -28 M (-6). Profit after tax amounted to SEK 130 M (13) and to SEK 495 M (4) for the full-year including items affecting comparability of SEK 0 M (-40).
Cash flow
The Group's consolidated working capital amounted to SEK 856 M (343) at the end of the period and the average working capital tied-up for the fourth quarter was 12.1 percent (11.7). Cash flow from operating activities amounted to SEK -115 M (152) during the quarter and to SEK 32 M (341) for the full-year. As a result of rising steel prices and long delivery times on incoming material, working capital increased by SEK 202 M in the quarter and by SEK 535 M for the full-year. Cash flow from investing activities amounted to SEK -10 M (-5) during the fourth quarter and SEK -25 M (-21) for the full-year. Cash flow after investments thus amounted to SEK -125 M (147) during the fourth quarter and SEK 7 M (320) for the full-year.
Financial position and liquidity
At the end of the period, consolidated cash and cash equivalents, including overdraft facilities, amounted to SEK 154 M (316) and the interest-bearing net debt excl. IFRS 16 was SEK 241 M (156). Equity amounted to SEK 1,413 M (905) at the end of the period and the net debt/equity ratio amounted to 17 percent (17).
Organization, structure and employees
The number of employees increased to 627 compared to 618 at the same time last year. The average number of employees during the year amounted to 621 (633).
THE GROUP'S CASH FLOW FROM OPERATING ACTIVITIES, SEK M
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 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 2022
BE Group's Annual General Meeting will take place on April 21, 2022, at 4:00 pm in Malmö, Sweden. Further information will be published on the company's website.
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 dividend of SEK 12 (-) to be paid for the financial year of 2021 which corresponds to approximately SEK 156 M.
The Board of Directors is pleased to state that BE Group during the year shows its best result since the stock exchange listing in 2006 and that the company exceed its targets to achieve an underlying profit margin of at least 5 percent and to achieve at least 15 percent return on capital employed. The outcome of the year was 9,8 percent and 42 percent respectively. When deciding on the proposed dividend, the Board of Directors has taken into account the sharp increase in working capital, as a consequence of higher material prices and longer lead times, and the company's potential business opportunities where a continuous strong balance sheet means a significant competitive advantage.
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 monitoring 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 wellbeing 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 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 / Year-end report January-December 2021
Future information
Future reporting dates
BE Group AB (publ) intends to publish financial information on the following dates:
- The Annual Report for 2021 will be available in late March 2022.
- The Interim Report for January–March 2022 will be published on April 21, 2022.
- The Interim Report for January–June 2022 will be published on July 13, 2022.
- The Interim Report for January–September 2022 will be published on October 19, 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, January 27, 2022
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.
This information is information that BE Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication through the agency of the contact persons set out above at 2:00 p.m. CET on January 27, 2022.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2021
Condensed consolidated income statement
| (SEK M) | Note | 2021 Oct-Dec | 2020 Oct-Dec | 2021 Full-year | 2020 Full-year |
|---|---|---|---|---|---|
| Net sales | 1,510 | 875 | 5,388 | 3,672 | |
| Cost of goods sold | 1 | -1,227 | -740 | -4,286 | -3,124 |
| Gross profit | 283 | 135 | 1,102 | 548 | |
| Selling expenses | 1 | -106 | -96 | -418 | -371 |
| Administrative expenses | 1 | -27 | -27 | -110 | -110 |
| Other operating income and expenses | 2 | -17 | 4 | -18 | -35 |
| Participation in joint venture | 25 | 2 | 65 | 7 | |
| Operating profit/loss | 158 | 18 | 621 | 39 | |
| Financial items | 0 | 1 | -17 | -28 | |
| Profit/loss before tax | 158 | 19 | 604 | 11 | |
| Tax | -28 | -6 | -109 | -7 | |
| Profit/loss for the period | 130 | 13 | 495 | 4 | |
| Earnings per share | 10.00 | 1.06 | 38.10 | 0.33 | |
| Earnings per share before and after dilution | 10.00 | 1.06 | 38.10 | 0.33 |
Consolidated statement of comprehensive income
| (SEK M) | 2021 Oct-Dec | 2020 Oct-Dec | 2021 Full-year | 2020 Full-year |
|---|---|---|---|---|
| Profit/loss for the period | 130 | 13 | 495 | 4 |
| Other comprehensive income | ||||
| Items that have, or may be, reclassified to profit/loss for the period | ||||
| Translation differences | 2 | -28 | 13 | -21 |
| Hedging of net investments in foreign subsidiaries | – | 0 | – | 0 |
| Tax attributable to items in other comprehensive income | – | 0 | – | 0 |
| Total other comprehensive income | 2 | -28 | 13 | -21 |
| Comprehensive income for the period | 132 | -15 | 508 | -17 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2021
Condensed consolidated balance sheet
| (SEK M) | Note | 2021 Dec 31 | 2020 Dec 31 |
|---|---|---|---|
| Goodwill | 561 | 557 | |
| Other intangible assets | 9 | 5 | |
| Tangible assets | 90 | 89 | |
| Right of use assets | 479 | 541 | |
| Investment in joint venture | 182 | 117 | |
| Financial assets | 0 | 0 | |
| Deferred tax assets | 5 | 24 | |
| Total non-current assets | 1,326 | 1,333 | |
| Inventories | 1,033 | 501 | |
| Accounts receivable | 653 | 376 | |
| Other receivables | 39 | 42 | |
| Cash and equivalents | 54 | 166 | |
| Total current assets | 1,779 | 1,085 | |
| Total assets | 3 | 3,105 | 2,418 |
| Equity | 1,413 | 905 | |
| Non-current interest-bearing liabilities | 287 | 321 | |
| Non-current leasing liabilities | 394 | 457 | |
| Provisions | - | 0 | |
| Deferred tax liability | 42 | 42 | |
| Total non-current liabilities | 723 | 820 | |
| Current interest-bearing liabilities | 8 | 1 | |
| Current leasing liabilities | 87 | 84 | |
| Accounts payable | 641 | 414 | |
| Other current liabilities | 229 | 162 | |
| Other current provisions | 4 | 32 | |
| Total current liabilities | 969 | 693 | |
| Total equity and liabilities | 3 | 3,105 | 2,418 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2021
Condensed consolidated cash-flow statement
| (SEK M) | 2021 Oct-Dec | 2020 Oct-Dec | 2021 Full-year | 2020 Full-year |
|---|---|---|---|---|
| Operating result | 158 | 18 | 621 | 39 |
| Adjustment for non-cash items | -8 | 22 | 28 | 134 |
| – of which, amortization/depreciation | 29 | 29 | 118 | 115 |
| – of which, other items | -37 | -7 | -90 | 19 |
| Interest paid/received and other financial items | -3 | -5 | -15 | -21 |
| Income tax paid | -60 | 0 | -67 | -10 |
| Change in working capital | -202 | 117 | -535 | 199 |
| Cash flow from operating activities | -115 | 152 | 32 | 341 |
| Investments in intangible assets | -1 | 0 | -1 | 0 |
| Investments in tangible assets | -9 | -5 | -25 | -21 |
| Divestments of tangible assets | 0 | 0 | 1 | 0 |
| Other cash flow from investing activities | 0 | 0 | 0 | 0 |
| Cash flow after investments | -125 | 147 | 7 | 320 |
| Cash flow from financing activities | -2 | -79 | -121 | -318 |
| Cash flow for the period | -127 | 68 | -114 | 2 |
| Exchange-rate difference in cash and equivalents | 5 | -4 | 2 | -4 |
| Change in cash and equivalents | -122 | 64 | -112 | -2 |
Condensed statement of changes in equity
| (SEK M) | 2021 Oct-Dec | 2020 Oct-Dec | 2021 Full-year | 2020 Full-year |
|---|---|---|---|---|
| Equity at beginning of period | 1,281 | 920 | 905 | 922 |
| Comprehensive income for the period | 132 | -15 | 508 | -17 |
| Dividend | - | - | - | - |
| Equity at end of period | 1,413 | 905 | 1,413 | 905 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2021
Note 1 Amortizations and depreciations
| (SEK M) | 2021
Oct-Dec | 2020
Oct-Dec | 2021
Full-year | 2020
Full-year |
| --- | --- | --- | --- | --- |
| Amortization of intangible assets | 0 | 1 | 2 | 3 |
| Depreciation of tangible assets | 6 | 6 | 23 | 23 |
| Depreciation of right of use assets | 23 | 22 | 93 | 89 |
| Total amortizations and depreciations | 29 | 29 | 118 | 115 |
Note 2 Items affecting comparability
| (SEK M) | 2021
Oct-Dec | 2020
Oct-Dec | 2021
Full-year | 2020
Full-year |
| --- | --- | --- | --- | --- |
| Restructuring expenses | – | – | – | -40 |
| Total items affecting comparability | – | – | – | -40 |
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 and bank loans, 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 / Year-end report January-December 2021
Segment reporting
Net sales by business area
| (SEK M) | 2021
Oct-Dec | 2020
Oct-Dec | 2021
Full-year | 2020
Full-year |
| --- | --- | --- | --- | --- |
| Sweden & Poland | 744 | 439 | 2,625 | 1,782 |
| Finland & Baltics | 771 | 436 | 2,790 | 1,896 |
| Parent Company & consolidated items | -5 | 0 | -27 | -6 |
| Group | 1,510 | 875 | 5,388 | 3,672 |
Net sales by business area and product group
| 2021 | Sweden & Poland | Finland & Baltics | Parent company & consolidated items | Total | ||||
|---|---|---|---|---|---|---|---|---|
| 2021 Oct-Dec | 2021 Full-year | 2021 Oct-Dec | 2021 Full-year | 2021 Oct-Dec | 2021 Full-year | 2021 Oct-Dec | 2021 Full-year | |
| Long steel products | 353 | 1,285 | 233 | 796 | 0 | 0 | 586 | 2,081 |
| Flat steel products | 246 | 808 | 379 | 1,405 | 0 | 0 | 625 | 2,213 |
| Stainless steel | 90 | 348 | 116 | 409 | 0 | 0 | 206 | 757 |
| Aluminium | 22 | 78 | 35 | 141 | 0 | 0 | 57 | 219 |
| Other | 33 | 106 | 8 | 39 | -5 | -27 | 36 | 118 |
| Total | 744 | 2,625 | 771 | 2,790 | -5 | -27 | 1,510 | 5,388 |
| 2020 | Sweden & Poland | Finland & Baltics | Parent company & consolidated items | Total | ||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2020 Oct-Dec | 2020 Full-year | 2020 Oct-Dec | 2020 Full-year | 2020 Oct-Dec | 2020 Full-year | 2020 Oct-Dec | 2020 Full-year | |
| Long steel products | 216 | 852 | 122 | 511 | 0 | 0 | 338 | 1,363 |
| Flat steel products | 130 | 517 | 210 | 911 | 0 | 0 | 340 | 1,428 |
| Stainless steel | 57 | 268 | 72 | 343 | 0 | 0 | 129 | 611 |
| Aluminium | 14 | 58 | 24 | 112 | 0 | 0 | 38 | 170 |
| Other | 22 | 87 | 8 | 19 | 0 | -6 | 30 | 100 |
| Total | 439 | 1,782 | 436 | 1,896 | 0 | -6 | 875 | 3,672 |
Net sales by country based on customer's domicile
| (SEK M) | 2021
Oct-Dec | 2020
Oct-Dec | 2021
Full-year | 2020
Full-year |
| --- | --- | --- | --- | --- |
| Sweden | 731 | 431 | 2,575 | 1,743 |
| Finland | 693 | 374 | 2,442 | 1,681 |
| Other | 86 | 70 | 371 | 248 |
| Group | 1,510 | 875 | 5,388 | 3,672 |
Shipped tonnage per segment
| (Thousands of thonnes) | 2021 Oct-Dec | 2020 Oct-Dec | 2021 Full-year | 2020 Full-year |
|---|---|---|---|---|
| Sweden & Poland | 38 | 36 | 164 | 144 |
| Finland & Baltics | 41 | 40 | 180 | 164 |
| Parent Company & consolidated items | 0 | 0 | -2 | -1 |
| Group | 79 | 76 | 342 | 307 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2021
Operating result (EBIT) per segment
| (SEK M) | 2021 Oct-Dec | 2020 Oct-Dec | 2021 Full-year | 2020 Full-year |
|---|---|---|---|---|
| Sweden & Poland | 96 | 7 | 282 | -14 |
| Finland & Baltics | 84 | 17 | 370 | 63 |
| Parent Company & consolidated items | -22 | -6 | -31 | -10 |
| Group | 158 | 18 | 621 | 39 |
Operating margin per segment
| 2021 Oct-Dec | 2020 Oct-Dec | 2021 Full-year | 2020 Full-year | |
|---|---|---|---|---|
| Sweden & Poland | 12.8% | 1.7% | 10.7% | -0.8% |
| Finland & Baltics | 10.9% | 4.0% | 13.2% | 3.3% |
| Parent Company & consolidated items | neg | neg | neg | neg |
| Group | 10.4% | 2.1% | 11.5% | 1.1% |
Underlying operating result (uEBIT) per segment 1)
| (SEK M) | 2021 Oct-Dec | 2020 Oct-Dec | 2021 Full-year | 2020 Full-year |
|---|---|---|---|---|
| Sweden & Poland | 80 | 7 | 221 | 32 |
| Finland & Baltics | 77 | 11 | 339 | 74 |
| Parent Company & consolidated items | -22 | -6 | -31 | -10 |
| Group | 135 | 12 | 529 | 96 |
Underlying operating margin per segment 2)
| 2021 Oct-Dec | 2020 Oct-Dec | 2021 Full-year | 2020 Full-year | |
|---|---|---|---|---|
| Sweden & Poland | 10.8% | 1.6% | 8.4% | 1.8% |
| Finland & Baltics | 10.0% | 2.5% | 12.1% | 3.9% |
| Parent Company & consolidated items | neg | neg | neg | neg |
| Group | 9.0% | 1.4% | 9.8% | 2.6% |
Depreciation per segment
| (SEK M) | 2021 Oct-Dec | 2020 Oct-Dec | 2021 Full-year | 2020 Full-year |
|---|---|---|---|---|
| Sweden & Poland | 4 | 4 | 16 | 13 |
| Finland & Baltics | 3 | 3 | 11 | 13 |
| Parent Company & consolidated items | 22 | 22 | 91 | 89 |
| Group | 29 | 29 | 118 | 115 |
Investments in tangible and intangible assets per segment
| (SEK M) | 2021 Oct-Dec | 2020 Oct-Dec | 2021 Full-year | 2020 Full-year |
|---|---|---|---|---|
| Sweden & Poland | 4 | 2 | 12 | 17 |
| Finland & Baltics | 6 | 1 | 11 | 2 |
| Parent Company & consolidated items | 0 | 2 | 3 | 2 |
| Group | 10 | 5 | 26 | 21 |
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 / Year-end report January-December 2021
Key data
| (SEK M unless otherwise stated) | 2021
Oct-Dec | 2020
Oct-Dec | 2021
Full-year | 2020
Full-year |
| --- | --- | --- | --- | --- |
| Net sales | 1,510 | 875 | 5,388 | 3,672 |
| Earnings measurements | | | | |
| Gross result | 283 | 135 | 1,102 | 548 |
| Underlying gross result | 269 | 129 | 1,038 | 563 |
| Operating result (EBIT) | 158 | 18 | 621 | 39 |
| Underlying operating result (uEBIT) | 135 | 12 | 529 | 96 |
| Margin measurements | | | | |
| Gross margin | 18.7% | 15.5% | 20.4% | 14.9% |
| Underlying gross margin | 17.8% | 14.8% | 19.3% | 15.3% |
| Operating margin | 10.4% | 2.1% | 11.5% | 1.1% |
| Underlying operating margin | 9.0% | 1.4% | 9.8% | 2.6% |
| Capital structure | | | | |
| Net debt excl. IFRS 16 1) | 241 | 156 | 241 | 156 |
| Net debt/equity ratio excl. IFRS 16 1) | 17% | 17% | 17% | 17% |
| Working capital at end of period | 856 | 343 | 856 | 343 |
| Working capital (average) | 734 | 409 | 524 | 468 |
| Capital employed (average) excl. IFRS 16 1) | 1,639 | 1,272 | 1,457 | 1,305 |
| Working capital tied-up | 12.1% | 11.7% | 9.7% | 12.8% |
| Return | | | | |
| Return on capital employed excl. IFRS 16 1) | 38.3% | 5.1% | 42.0% | 2.3% |
| Per share data | | | | |
| Earnings per share (SEK) | 10.00 | 1.06 | 38.10 | 0.33 |
| Earnings per share after dilution (SEK) | 10.00 | 1.06 | 38.10 | 0.33 |
| Equity per share (SEK) | 108.84 | 69.73 | 108.84 | 69.73 |
| Cash flow from operating activities per share (SEK) | -8.87 | 11.72 | 2.49 | 26.28 |
| 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 | 73% | -11% | 47% | -16% |
| - of which organic tonnage growth | 4% | -1% | 11% | -10% |
| - of which price and mix changes | 70% | -8% | 38% | -5% |
| - of which currency effects | -1% | -2% | -2% | -1% |
| Other | | | | |
| Average number of employees | 627 | 625 | 621 | 633 |
| Inventory gains and losses | 23 | 6 | 92 | -17 |
| Shipped tonnage (thousands of tonnes) | 79 | 76 | 342 | 307 |
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 / Year-end report January-December 2021
Condensed parent company income statement
| (SEK M) | 2021
Oct-Dec | 2020
Oct-Dec | 2021
Full-year | 2020
Full-year |
| --- | --- | --- | --- | --- |
| Net sales | 39 | 7 | 104 | 79 |
| Administrative expenses | -11 | -10 | -44 | -42 |
| Other operating income and expenses | 0 | 15 | 0 | 16 |
| Operating profit/loss | 28 | 12 | 60 | 53 |
| Financial items | 1 | 15 | 98 | 37 |
| Profit/loss after financial items | 29 | 27 | 158 | 90 |
| Appropriations | 124 | -15 | 124 | -15 |
| Profit/loss before tax | 153 | 12 | 282 | 75 |
| Tax | -32 | 3 | -38 | -2 |
| Profit/loss for the period, or comprehensive income for the period | 121 | 15 | 244 | 73 |
Condensed parent company balance sheet
| (SEK M) | 2021
Dec 31 | 2020
Dec 31 |
| --- | --- | --- |
| Intangible assets | 5 | 1 |
| Tangible assets | 0 | 2 |
| Financial assets | 880 | 906 |
| Total non-current assets | 885 | 909 |
| Current receivables | 353 | 108 |
| Cash and equivalents | 38 | 152 |
| Total current assets | 391 | 260 |
| Total assets | 1,276 | 1,169 |
| Equity | 959 | 715 |
| Non-current liabilities | 226 | 305 |
| Current liabilities | 91 | 149 |
| Total equity and liabilities | 1,276 | 1,169 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2021
Key data – multi-quarter summary
| (SEK M unless otherwise stated) | 2021 Oct-Dec | 2021 Jul-Sep | 2021 Apr-Jun | 2021 Jan-Mar | 2020 Oct-Dec | 2020 Jul-Sep | 2020 Apr-Jun | 2020 Jan-Mar | 2019 Oct-Dec |
|---|---|---|---|---|---|---|---|---|---|
| Net sales | 1,510 | 1,375 | 1,403 | 1,100 | 875 | 744 | 935 | 1,118 | 984 |
| Earnings measurements | |||||||||
| Gross result | 283 | 316 | 296 | 207 | 135 | 105 | 138 | 170 | 138 |
| Underlying gross result | 269 | 301 | 275 | 193 | 129 | 114 | 140 | 180 | 138 |
| Operating result (EBIT) | 158 | 219 | 158 | 86 | 18 | 4 | 21 | -4 | 8 |
| Underlying operating result (uEBIT) | 135 | 193 | 133 | 68 | 12 | 14 | 28 | 42 | 9 |
| Margin measurements | |||||||||
| Gross margin | 18.7% | 23.0% | 21.1% | 18.9% | 15.5% | 14.1% | 14.7% | 15.2% | 14.0% |
| Underlying gross margin | 17.8% | 21.9% | 19.6% | 17.5% | 14.8% | 15.3% | 14.9% | 16.1% | 14.1% |
| Operating margin | 10.4% | 15.9% | 11.3% | 7.8% | 2.1% | 0.5% | 2.2% | -0.4% | 0.8% |
| Underlying operating margin | 9.0% | 14.0% | 9.5% | 6.1% | 1.4% | 1.8% | 3.0% | 3.8% | 0.9% |
| Capital structure | |||||||||
| Net debt excl. IFRS 16 1) | 241 | 98 | 75 | 124 | 156 | 281 | 254 | 322 | 373 |
| Net debt/equity ratio excl. IFRS 16 1) | 17% | 8% | 7% | 13% | 17% | 30% | 27% | 34% | 40% |
| Working capital at end of period | 856 | 610 | 434 | 376 | 343 | 474 | 455 | 520 | 549 |
| Working capital (average) | 734 | 523 | 405 | 360 | 409 | 464 | 487 | 534 | 578 |
| Capital employed (average) excl. IFRS 16 1) | 1,639 | 1,467 | 1,387 | 1,318 | 1,272 | 1,258 | 1,258 | 1,389 | 1,463 |
| Working capital tied-up | 12.1% | 9.5% | 7.2% | 8.2% | 11.7% | 15.6% | 13.0% | 11.9% | 14.7% |
| Return | |||||||||
| Return on capital employed excl. IFRS 16 1) | 38.3% | 59.1% | 44.9% | 25.1% | 5.1% | 0.5% | 5.8% | -1.2% | 1.5% |
| Per share data | |||||||||
| Earnings per share (SEK) | 10.00 | 13.49 | 9.74 | 4.88 | 1.06 | -0.32 | 1.34 | -1.75 | 0.57 |
| Earnings per share after dilution (SEK) | 10.00 | 13.49 | 9.74 | 4.88 | 1.06 | -0.32 | 1.34 | -1.75 | 0.57 |
| Equity per share (SEK) | 108.84 | 98.68 | 84.82 | 75.55 | 69.73 | 70.87 | 70.92 | 72.19 | 71.05 |
| Cash flow from operating activities per share (SEK) | -8.87 | 0.50 | 6.24 | 4.62 | 11.72 | 0.06 | 7.32 | 7.18 | 6.50 |
| 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 | 73% | 85% | 50% | -2% | -11% | -24% | -22% | -7% | -15% |
| - of which organic tonnage growth | 4% | 21% | 28% | -3% | -1% | -16% | -17% | -5% | -17% |
| - of which price and mix changes | 70% | 65% | 25% | 4% | -8% | -6% | -5% | -3% | 1% |
| - of which currency effects | -1% | -1% | -3% | -3% | -2% | -2% | 0% | 1% | 1% |
| Other | |||||||||
| Average number of employees | 627 | 625 | 616 | 613 | 625 | 636 | 637 | 637 | 644 |
| Inventory gains and losses | 23 | 26 | 25 | 18 | 6 | -10 | -2 | -11 | -1 |
| Shipped tonnage (thousands of tonnes) | 79 | 77 | 98 | 88 | 76 | 64 | 77 | 90 | 77 |
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 / Year-end report January-December 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
Oct-Dec | 2020
Oct-Dec | 2021
Full-year | 2020
Full-year |
| --- | --- | --- | --- | --- |
| Operating result | 158 | 18 | 621 | 39 |
| Reversal of inventory gains (-)/losses (+) | -23 | -6 | -92 | 17 |
| Adjustment for items affecting comparability | – | – | – | 40 |
| Group | 135 | 12 | 529 | 96 |
Working capital
| (SEK M) | 2021
Dec 31 | 2020
Dec 31 |
| --- | --- | --- |
| Inventories | 1,033 | 501 |
| Accounts receivable | 653 | 376 |
| Other receivables | 39 | 42 |
| Deduction accounts payable | -641 | -414 |
| Deduction other current liabilities | -229 | -162 |
| Rounding | 1 | – |
| Group | 856 | 343 |
Average working capital is an average for each period based on quarterly data.
Net debt excl. IFRS 16
| (SEK M) | 2021
Dec 31 | 2020
Dec 31 |
| --- | --- | --- |
| Non-current interest-bearing liabilities and leasing liabilities | 681 | 778 |
| Current interest-bearing liabilities and leasing liabilities | 95 | 85 |
| Deduction leasing liabilities | -481 | -541 |
| Deduction financial assets | 0 | 0 |
| Deduction cash and equivalents | -54 | -166 |
| Rounding | – | – |
| Group | 241 | 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
Dec 31 | 2020
Dec 31 |
| --- | --- | --- |
| Equity excl. IFRS 16 | 1,420 | 912 |
| Non-current interest-bearing liabilities and leasing liabilities | 681 | 778 |
| Current interest-bearing liabilities and leasing liabilities | 95 | 85 |
| Deduction leasing liabilities | -481 | -541 |
| Rounding | 1 | – |
| Group | 1,716 | 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 / Year-end report January-December 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 / Year-end report January-December 2021
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 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 5.4 billion in 2021. 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 5.4
billion
20