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BE Group AB Interim / Quarterly Report 2022
3140_10-q_2022-10-19_503eacba-e76d-4634-a70b-c15052160392.pdf
Interim / Quarterly Report
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BE GROUP
INTERIM REPORT
BE Group AB (publ)
January – September 2022
Third quarter 2022
- Net sales increased by 10% to SEK 1,514 M (1,375)
- The underlying operating result amounted to SEK 67 M (193)
- The operating result amounted to SEK 40 M (219), including inventory losses of SEK -27 M (26)
- Result after tax amounted to SEK 26 M (175)
- Cash flow from operating activities amounted to SEK -183 M (6)
- Earnings per share amounted to SEK 2.05 (13.49)
- Lecor Stålteknik was divested on July 1
- The acquisition of Goodtech Solutions Manufacturing AB was completed with take-over on September 1
First nine months 2022
- Net sales increased by 39% to SEK 5,403 M (3,878)
- The underlying operating result increased to SEK 538 M (394)
- The operating result increased to SEK 537 M (463), including inventory losses of SEK -1 M (69)
- Result after tax increased to SEK 425 M (365)
- Cash flow from operating activities amounted to SEK 52 M (147)
- Earnings per share increased to SEK 32.76 (28.10)
- The acquired assets of Hercules Rebar was taken over on May 1
"The prevailing business environment has reduced demand during the third quarter, that also led to lower steel prices, which in turn pushed down the gross margin. For BE Group, this has meant a negative development of the operating result. However, the conditions are still good for 2022 to be a strong year in terms of earnings"
Peter Andersson, President and CEO
| Results overview | 2022
Jul-Sep | 2021
Jul-Sep | Change | 2022
Jan-Sep | 2021
Jan-Sep | Change |
| --- | --- | --- | --- | --- | --- | --- |
| Tonnage, thousands of tonnes | 68 | 77 | -9 | 248 | 263 | -15 |
| Net sales, SEK M | 1,514 | 1,375 | 139 | 5,403 | 3,878 | 1,525 |
| Underlying operating result, SEK M | 67 | 193 | -126 | 538 | 394 | 144 |
| Operating result, SEK M | 40 | 219 | -179 | 537 | 463 | 74 |
| Profit/loss for the period, SEK M | 26 | 175 | -149 | 425 | 365 | 60 |
| Earnings per share, SEK | 2.05 | 13.49 | -11.44 | 32.76 | 28.10 | 4.66 |
| Cash flow from operating activities, SEK M | -183 | 6 | -189 | 52 | 147 | -95 |
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 650 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-September 2022
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
"The focus of the company is always on sales, working capital and expenses. Now we are increasing that focus"
Statement from the CEO
The prevailing business environment has reduced demand during the third quarter, that also led to lower steel prices, which in turn pushed down the gross margin. For BE Group, this has meant a negative development of the operating result. However, net sales increased by 10% to SEK 1,514 million (1,375) compared to the previous year, but the underlying operating profit fell by 65% to SEK 67 million (193). Operating profit including inventory losses amounted to SEK 40 million (219).
The margin decrease was already seen in the second quarter and has subsequently continued. At the moment, this trend appears as if it will continue in the fourth quarter. However, the conditions are still good for 2022 to be a strong year in terms of earnings. For the first nine months, net sales amounted to SEK 5,403 M (3,878) and the operating result, including inventory gains and losses, amounted to SEK 537 M (463).
Steel price trend
The price decline that began in the second quarter continued into the third quarter as expected. The wave of hoarding in connection with Russia's invasion of Ukraine was driven by concerns about problems with availability, which proved to be a smaller problem than feared. The result was inventory build-up throughout Europe. Prices have now leveled off.
Steel mills have carried out announced capacity reductions. If these lead to material shortages, prices can likely move quickly. An important task for BE Group is, now as always, to keep its ear very close to the ground.
Our focus
In a headwind, it's important to stand with both feet firmly on the ground and to see things as they really are. Steel is steel and we are continuing to do business with our customers. The focus of the company is always on sales, working capital and expenses. Now we are increasing that focus.
The world will probably not end, which is why the thorough work continues to build a strong and stable company that, regardless of the economic situation, is better than before. The key words are sales culture, customer experience and digitalization!
Peter Andersson
President and CEO
| Bridge 2021-2022 operating result SEK M | Q1 | Q2 | Q3 | Q4 | Jan-Sep |
|---|---|---|---|---|---|
| Operating result 2021 | 86 | 158 | 219 | 158 | 463 |
| Reversal of inventory gains (-)/losses (+) | -18 | -25 | -26 | -23 | -69 |
| Items affecting comparability | - | - | - | - | - |
| Underlying operating result 2021 | 68 | 133 | 193 | 135 | 394 |
| Change in sales | 131 | 126 | 30 | - | 287 |
| Change in underlying gross margin | -1 | 45 | -134 | - | -90 |
| Change in overhead costs | -18 | -13 | -22 | - | -53 |
| Underlying operating result 2022 | 180 | 291 | 67 | - | 538 |
| Reversal of inventory gains (+)/losses (-) | 4 | 22 | -27 | - | -1 |
| Items affecting comparability | - | - | - | - | - |
| Operating result 2022 | 184 | 313 | 40 | - | 537 |
2
Comments on the report
Third quarter
The Group's consolidated net sales for the period increased by 10 percent compared to last year, amounting to SEK 1,514 M (1,375). The increase is explained by positive price and mix effects of 19 percent, acquisitions of 4 percent and positive currency effects of 3 percent counteracted by negative organic tonnage growth of -15 percent and divestment of -1 percent. The prevailing business environment, high inventories among customers, and a changed price trend contributed to demand remaining moderate in the third quarter. The positive price effect is due to relatively higher steel prices.
Declined volume and high costs for incoming material contributed to a decreased gross profit of SEK 173 M (316) which leads to a gross margin of 11.5 percent (23.0). The operating result amounted to SEK 40 M (219), corresponding to an operating margin of 2.6 percent (15.9). Adjusted for inventory gains and losses of SEK -27 M (26), the underlying operating result amounted to SEK 67 M (193). The underlying operating margin during the period amounted to 4.4 percent (14.0).
First nine months
During the first nine months, the Group's net sales increased by 39 percent compared to last year and amounted to SEK 5,403 M (3,878). Tonnage in business area Sweden & Poland decreased by -2 percent including acquisitions and Finland & Baltics delivered -18 percent less. Rising steel prices and mix effects have affected net sales positive by 42 percent. Gross profit increased to SEK 958 M (819) with a gross margin of 17.7 percent (21.1).
The operating result increased to SEK 537 M (463), corresponding to an operating margin of 9.9 percent (11.9). Adjusted for inventory gains and losses of SEK -1 M (69), the underlying operating result increased to SEK 538 M (394). The underlying operating margin amounted to 10.0 percent (10.1) during the period.
The sanctions directed at Russia, a shortage of input materials and rising energy costs caused considerable price increases among producers at the end of the first quarter and the second quarter. The current economic downturn and high inventory levels have led to shorter delivery times and a dampening of price pressure from suppliers. Steel producers are adapting to lower market needs by reducing capacity and costs.
BE Group is also affected directly and indirectly by higher fuel costs and energy prices, as well as the risk of shortages of electricity and gas. BE Group is continuing to closely monitor developments and is prepared to take actions where necessary to reduce the negative impact on the business.
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-September 2022
The business area includes the Group's operations in Sweden consisting of the companies BE Group Sverige and BE Group Produktion Arvika, as well as the Polish operation BE Group Poland. Lecor Stålteknik was divested on July 1, 2022.
Third quarter
Net sales increased by 20 percent in the third quarter compared to last year and amounted to SEK 757 M (629). The higher sales is explained by positive price and mix effects of 22 percent, acquisitions of 9 percent counteracted by negative organic tonnage growth of -11 percent. The operating result amounted to SEK 26 M (94). Adjusted for inventory gains and losses of SEK -15 M (17), the underlying operating result amounted to SEK 41 M (77).
The Swedish operations provided a weaker underlying operating result compared with the strong previous year. The earnings trend is mainly attributable to decreased volumes from construction customers and a changed price trend, resulting in a lower gross margin. Our joint venture AMBE provided a lower operating result due to decreased demand and falling prices on thin sheets.
In the Polish operations profitability improved as a result of higher steel prices and a strengthened gross margin.
The final purchase price for the acquisition of shares in BE Group Produktion Arvika, former Goodtech Solutions Manufacturing AB, amounted to SEK 10 M. Take-over was on September 1. The acquisition mainly adds production capacity and affects the underlying result marginally positive during the year.
Lecor Stålteknik was divested on July 1.
First nine months
Net sales for the first nine months increased by 40 percent compared to last year, amounting to SEK 2,631 M (1,881). Sales growth is mainly explained by higher steel prices while tonnage decreased by -4 percent including acquisitions. Operating result increased to SEK 232 M (186). Adjusted for inventory gains of SEK 9 M (46), the underlying operating result increased to SEK 223 M (141).
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
BUSINESS AREA FINLAND & BALTICS
The business area includes the Group's operations in Finland and the three Baltic countries.
Third quarter
Compared to the third quarter last year, net sales increased by 2 percent amounting to SEK 766 M (753). Sales growth is explained by positive price and mix effects of 15 percent, positive currency effects of 5 percent and negative organic tonnage growth of -18 percent. The operating result amounted to SEK 16 M (126). Adjusted for inventory gains and losses of SEK -13 M (9), the underlying operating result amounted to SEK 29 M (117).
The Finnish operations provided a weaker underlying operating result compared with the very strong previous year. The earnings trend is attributable to decreased demand and high costs for incoming materials resulting in a lower gross margin.
The Baltic operations provided a weak result due to decreased tonnage and a changed price trend.
First nine months
Net sales for the first nine months increased by 38 percent compared to last year, amounting to SEK 2,794 M (2,019). Sales growth is explained by higher steel prices while tonnage decreased by -7 percent. The operating result increased to SEK 315 M (286) and adjusted for inventory gains and losses of SEK -11 M (24), the underlying operating result increased to SEK 326 M (262).
BUSINESS AREA FINLAND & BALTICS SALES GROWTH AND UNDERLYING OPERATING RESULT PER QUARTER
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 2021.
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 third quarter of the Parent Company, BE Group AB (publ), amounted to SEK 30 M (21) 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 -14 M (-10), SEK 10 M (9) was allocated to the subsidiaries. The operating result amounted to SEK 16 M (11). For the first nine months, net sales amounted to SEK 90 M (65) and the operating result to SEK 47 M (32).
Net financial items for the quarter amounted to SEK 7 M (1). Profit before tax amounted to SEK 23 M (12) and profit after tax amounted to SEK 19 M (10). Investments in the Parent Company amounted to SEK 0 M (0). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 72 M (171).
Net financial items for the first nine months amounted to SEK 263 M (97). Profit before tax amounted to SEK 310 M (129) and profit after tax was SEK 299 M (123). Investments in the Parent Company amounted to SEK 0 M (3).
Group
Net financial items and tax
The Group's consolidated net financial items in the third quarter amounted to SEK -6 M (-5), of which net interest amounted to SEK -5 M (-3). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -3 M (-2). Net financial items for the first nine months amounted to SEK -13 M (-17) and net interest to SEK -12 M (-11), of which SEK -7 M (-7) relates to IFRS 16.
Taxes for the third quarter amounted to SEK -8 M (-39). Profit after tax amounted to SEK 26 M (175) and was SEK 425 M (365) for the first nine months.
Cash flow
The Group's consolidated working capital amounted to SEK 1,340 M (610) at the end of the period and the average working capital tied-up for the third quarter was 19.9 percent (9.5). The higher working capital is explained by an increased inventory value by the end of the period amounting to SEK 1,418 M (770). The increased inventory value is caused by increased average prices, acquisitions and a more moderate demand in the third quarter. Cash flow from operating activities amounted to SEK -183 M (6) during the quarter and to SEK 52 M (147) for the first nine months. Cash flow from investing activities amounted to SEK -21 M (-6) during the third quarter and SEK -50 M (-15) for the first nine months. Cash flow after investments thus amounted to SEK -204 M (0) during the third quarter and SEK 2 M (132) 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 230 M (276) and the interest-bearing net debt excl. IFRS 16 was SEK 475 M (98). Equity amounted to SEK 1,731 M (1,281) at the end of the period.
Organization, structure and employees
The number of employees amounted to 646 compared to 627 at the same time last year. The average number of employees during the third quarter amounted to 656 (625).
THE GROUP'S CASH FLOW FROM OPERATING ACTIVITIES, SEK M
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
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 (The Pure Circle) and Jörgen Zahlin, Chairman of BE Group AB, who is also the convener for the Nomination Committee.
Annual General Meeting 2023
BE Group's Annual General Meeting will take place on April 20, 2023, 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 2021 Annual Report, which was published in March 2022. Risks related to the war in Ukraine is described below.
The war in Ukraine
As Russia and Ukraine are major producers of iron ore and other inputs and European manufacturers are importing parts of their coal needs from Russia, the war will continue to have a major impact on the European steel market with shortages and sharp price increases as a possible consequence. About 10% of BE Group's total steel purchases in 2021 came from Russian-controlled steel producers. The imposed sanctions resulted in BE Group immediately stopping orders and payments to companies subject to it. BE Group is monitoring the development closely and are working proactively with finding alternatives to secure the deliveries of steel. The effect of sanctions and potentially other consequences connected to the war may affect the company's financial position.
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 2021 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 2022 have had no significant effect on the financial reporting.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
Future information
Future reporting dates
BE Group AB (publ) intends to publish financial information on the following dates:
- The Year-end report for 2022 will be published on January 26, 2023
- The Annual Report for 2022 will be available in late March 2023
- The Interim Report for January–March 2023 will be published on April 20, 2023
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, October 19, 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 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. CET on October 19, 2022.
Auditor’s report
BE Group AB (publ). reg. no. 556578-4724
Introduction
We have reviewed the condensed interim financial information (interim report) of BE Group AB (publ) as of 30 September 2022 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information 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 Report 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, ISA, 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 with the Swedish Annual Accounts Act, regarding the Parent Company.
Malmö, October 19, 2022
Öhrlings PricewaterhouseCoopers AB
Cecilia Andrén Dorselius
Authorized Public Accountant
Partner in charge
Johan Rönnbäck
Authorized Public Accountant
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
Condensed consolidated income statement
| (SEK M) | Note | 2022 Jul-Sep | 2021 Jul-Sep | 2022 Jan-Sep | 2021 Jan-Sep | 2021 Full-year | Rolling 12 months |
|---|---|---|---|---|---|---|---|
| Net sales | 1,514 | 1,375 | 5,403 | 3,878 | 5,388 | 6,913 | |
| Cost of goods sold | 1 | -1,341 | -1,059 | -4,445 | -3,059 | -4,286 | -5,672 |
| Gross profit | 173 | 316 | 958 | 819 | 1,102 | 1,241 | |
| Selling expenses | 1 | -107 | -93 | -359 | -312 | -418 | -465 |
| Administrative expenses | 1 | -28 | -25 | -90 | -83 | -110 | -117 |
| Other operating income and expenses | -1 | -1 | -8 | -1 | -18 | -25 | |
| Participation in joint venture | 3 | 22 | 36 | 40 | 65 | 61 | |
| Operating profit/loss | 40 | 219 | 537 | 463 | 621 | 695 | |
| Financial items | -6 | -5 | -13 | -17 | -17 | -13 | |
| Profit/loss before tax | 34 | 214 | 524 | 446 | 604 | 682 | |
| Tax | -8 | -39 | -99 | -81 | -109 | -127 | |
| Profit/loss for the period | 26 | 175 | 425 | 365 | 495 | 555 | |
| Earnings per share (SEK) | 2.05 | 13.49 | 32.76 | 28.10 | 38.10 | 42.76 |
Consolidated statement of comprehensive income
| (SEK M) | 2022 Jul-Sep | 2021 Jul-Sep | 2022 Jan-Sep | 2021 Jan-Sep | 2021 Full-year | Rolling 12 months |
|---|---|---|---|---|---|---|
| Profit/loss for the period | 26 | 175 | 425 | 365 | 495 | 555 |
| Other comprehensive income | ||||||
| Items that have, or may be, reclassified to profit/loss for the period | ||||||
| Translation differences | 17 | 5 | 49 | 11 | 13 | 51 |
| Tax on items that have, or may be, reclassified to profit/loss for the period | - | - | - | - | - | - |
| Total other comprehensive income | 17 | 5 | 49 | 11 | 13 | 51 |
| Comprehensive income for the period | 43 | 180 | 474 | 376 | 508 | 606 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
Condensed consolidated balance sheet
| (SEK M) | Note | 2022 | 2021 | 2021 |
|---|---|---|---|---|
| 30 Sep | 30 Sep | Dec 31 | ||
| Goodwill | 578 | 561 | 561 | |
| Other intangible assets | 8 | 8 | 9 | |
| Tangible assets | 130 | 86 | 90 | |
| Right of use assets | 512 | 501 | 479 | |
| Investment in joint venture | 198 | 157 | 182 | |
| Financial assets | 0 | 0 | 0 | |
| Deferred tax assets | 4 | 15 | 5 | |
| Total non-current assets | 1,430 | 1,328 | 1,326 | |
| Inventories | 1,418 | 770 | 1,033 | |
| Accounts receivable | 934 | 866 | 653 | |
| Other receivables | 23 | 34 | 39 | |
| Cash and equivalents | 80 | 176 | 54 | |
| Total current assets | 2,455 | 1,846 | 1,779 | |
| Total assets | 2 | 3,885 | 3,174 | 3,105 |
| Equity | 1,731 | 1,281 | 1,413 | |
| Non-current interest-bearing liabilities | 553 | 266 | 287 | |
| Non-current leasing liabilities | 417 | 413 | 394 | |
| Deferred tax liability | 47 | 41 | 42 | |
| Total non-current liabilities | 1,017 | 720 | 723 | |
| Current interest-bearing liabilities | 3 | 9 | 8 | |
| Current leasing liabilities | 98 | 88 | 87 | |
| Accounts payable | 692 | 783 | 641 | |
| Other current liabilities | 343 | 277 | 229 | |
| Other current provisions | 1 | 16 | 4 | |
| Total current liabilities | 1,137 | 1,173 | 969 | |
| Total equity and liabilities | 2 | 3,885 | 3,174 | 3,105 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
Condensed consolidated cash-flow statement
| (SEK M) | 2022
Jul-Sep | 2021
Jul-Sep | 2022
Jan-Sep | 2021
Jan-Sep | 2021
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Operating result | 40 | 219 | 537 | 463 | 621 | 695 |
| Adjustment for non-cash items | 53 | 4 | 88 | 36 | 28 | 80 |
| - of which, amortization/depreciation | 28 | 29 | 84 | 89 | 118 | 113 |
| - of which, other items | 25 | -25 | 4 | -53 | -90 | -33 |
| Interest paid/received and other financial items | -4 | -4 | -11 | -12 | -15 | -14 |
| Income tax paid | -21 | -3 | -32 | -7 | -67 | -92 |
| Change in working capital | -251 | -210 | -530 | -333 | -535 | -732 |
| Cash flow from operating activities | -183 | 6 | 52 | 147 | 32 | -63 |
| Acquisitions/divestments of subsidiaries | 2 | - | -7 | - | - | -7 |
| Changes in intangible assets | -1 | 0 | -1 | 0 | -1 | -2 |
| Changes in tangible assets | -22 | -6 | -42 | -15 | -24 | -51 |
| Other cash flow from investing activities | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash flow after investments | -204 | 0 | 2 | 132 | 7 | -123 |
| Cash flow from financing activities 1) | 116 | -11 | 22 | -119 | -121 | 20 |
| Cash flow for the period | -88 | -11 | 24 | 13 | -114 | -103 |
| Translation differences in cash and equivalents | 0 | -3 | 2 | -3 | 2 | 7 |
| Change in cash and equivalents | -88 | -14 | 26 | 10 | -112 | -96 |
1) In the cash flow from financing activities for January-September 2022 SEK -156 M relates to dividend paid for 2021.
Condensed statement of changes in equity
| (SEK M) | 2022
Jul-Sep | 2021
Jul-Sep | 2022
Jan-Sep | 2021
Jan-Sep | 2021
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Equity at beginning of period | 1,688 | 1,101 | 1,413 | 905 | 905 | 1,281 |
| Comprehensive income for the period | 43 | 180 | 474 | 376 | 508 | 606 |
| Dividend | - | - | -156 | - | - | -156 |
| Equity at end of period | 1,731 | 1,281 | 1,731 | 1,281 | 1,413 | 1,713 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
Note 1 Amortizations and depreciations
| (SEK M) | 2022
Jul-Sep | 2021
Jul-Sep | 2022
Jan-Sep | 2021
Jan-Sep | 2021
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Amortization of intangible assets | 1 | 0 | 3 | 2 | 2 | 3 |
| Depreciation of tangible assets | 5 | 5 | 15 | 17 | 23 | 21 |
| Depreciation of right of use assets | 22 | 24 | 66 | 70 | 93 | 89 |
| Total amortizations and depreciations | 28 | 29 | 84 | 89 | 118 | 113 |
Note 2 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 2021 Annual Report. No material changes have taken place in relation to the valuation as per December 31.
13
Segment reporting
Net sales by business area
| (SEK M) | 2022 Jul-Sep | 2021 Jul-Sep | 2022 Jan-Sep | 2021 Jan-Sep | 2021 Full-year | Rolling 12 months |
|---|---|---|---|---|---|---|
| Sweden & Poland | 757 | 629 | 2,631 | 1,881 | 2,625 | 3,375 |
| Finland & Baltics | 766 | 753 | 2,794 | 2,019 | 2,790 | 3,565 |
| Parent Company & consolidated items | -9 | -7 | -22 | -22 | -27 | -27 |
| Group | 1,514 | 1,375 | 5,403 | 3,878 | 5,388 | 6,913 |
Net sales by business area and product group
| 2022 | Sweden & Poland | Finland & Baltics | Parent company & consolidated items | Total | ||||
|---|---|---|---|---|---|---|---|---|
| 2022 Jul-Sep | 2022 Jan-Sep | 2022 Jul-Sep | 2022 Jan-Sep | 2022 Jul-Sep | 2022 Jan-Sep | 2022 Jul-Sep | Rolling 12 months | |
| Long steel products | 418 | 1,382 | 242 | 840 | 0 | 0 | 660 | 2,222 |
| Flat steel products | 235 | 781 | 372 | 1,402 | 0 | 0 | 607 | 2,183 |
| Stainless steel | 80 | 318 | 107 | 396 | 0 | 0 | 187 | 714 |
| Aluminium | 17 | 74 | 34 | 126 | 0 | 0 | 51 | 200 |
| Other | 7 | 76 | 11 | 30 | -9 | -22 | 9 | 84 |
| Total | 757 | 2,631 | 766 | 2,794 | -9 | -22 | 1,514 | 5,403 |
| 2021 | Sweden & Poland | Finland & Baltics | Parent company & consolidated items | Total | ||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 Jul-Sep | 2021 Jan-Sep | 2021 Jul-Sep | 2021 Jan-Sep | 2021 Jul-Sep | 2021 Jan-Sep | 2021 Jul-Sep | 2021 Full-year | |
| Long steel products | 312 | 932 | 211 | 563 | 0 | 0 | 523 | 1,495 |
| Flat steel products | 196 | 562 | 379 | 1,026 | 0 | 0 | 575 | 1,588 |
| Stainless steel | 82 | 258 | 115 | 293 | 0 | 0 | 197 | 551 |
| Aluminium | 17 | 56 | 37 | 106 | 0 | 0 | 54 | 162 |
| Other | 22 | 73 | 11 | 31 | -7 | -22 | 26 | 82 |
| Total | 629 | 1,881 | 753 | 2,019 | -7 | -22 | 1,375 | 3,878 |
Net sales by country based on customer's domicile
| (SEK M) | 2022 Jul-Sep | 2021 Jul-Sep | 2022 Jan-Sep | 2021 Jan-Sep | 2021 Full-year | Rolling 12 months |
|---|---|---|---|---|---|---|
| Sweden | 735 | 615 | 2,571 | 1,844 | 2,575 | 3,302 |
| Finland | 699 | 660 | 2,511 | 1,749 | 2,442 | 3,204 |
| Other | 80 | 100 | 321 | 285 | 371 | 407 |
| Group | 1,514 | 1,375 | 5,403 | 3,878 | 5,388 | 6,913 |
Shipped tonnage per segment
| (Thousands of thonnes) | 2022 Jul-Sep | 2021 Jul-Sep | 2022 Jan-Sep | 2021 Jan-Sep | 2021 Full-year | Rolling 12 months |
|---|---|---|---|---|---|---|
| Sweden & Poland | 34 | 36 | 120 | 126 | 164 | 158 |
| Finland & Baltics | 34 | 42 | 129 | 139 | 180 | 170 |
| Parent Company & consolidated items | 0 | -1 | -1 | -2 | -2 | -1 |
| Group | 68 | 77 | 248 | 263 | 342 | 327 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
Operating result (EBIT) per segment
| (SEK M) | 2022
Jul-Sep | 2021
Jul-Sep | 2022
Jan-Sep | 2021
Jan-Sep | 2021
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | 26 | 94 | 232 | 186 | 282 | 328 |
| Finland & Baltics | 16 | 126 | 315 | 286 | 370 | 399 |
| Parent Company & consolidated items | -2 | -1 | -10 | -9 | -31 | -32 |
| Group | 40 | 219 | 537 | 463 | 621 | 695 |
Operating margin per segment
| (SEK M) | 2022
Jul-Sep | 2021
Jul-Sep | 2022
Jan-Sep | 2021
Jan-Sep | 2021
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | 3.4% | 14.9% | 8.8% | 9.9% | 10.7% | 9.7% |
| Finland & Baltics | 2.2% | 16.6% | 11.3% | 14.1% | 13.2% | 11.2% |
| Parent Company & consolidated items | neg | neg | neg | neg | neg | neg |
| Group | 2.6% | 15.9% | 9.9% | 11.9% | 11.5% | 10.1% |
Underlying operating result (uEBIT) per segment 1)
| (SEK M) | 2022
Jul-Sep | 2021
Jul-Sep | 2022
Jan-Sep | 2021
Jan-Sep | 2021
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | 41 | 77 | 223 | 141 | 221 | 303 |
| Finland & Baltics | 29 | 117 | 326 | 262 | 339 | 403 |
| Parent Company & consolidated items | -3 | -1 | -11 | -9 | -31 | -33 |
| Group | 67 | 193 | 538 | 394 | 529 | 673 |
Underlying operating margin per segment 2)
| (SEK M) | 2022
Jul-Sep | 2021
Jul-Sep | 2022
Jan-Sep | 2021
Jan-Sep | 2021
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | 5.5% | 12.1% | 8.5% | 7.5% | 8.4% | 9.0% |
| Finland & Baltics | 3.7% | 15.5% | 11.7% | 13.0% | 12.1% | 11.3% |
| Parent Company & consolidated items | neg | neg | neg | neg | neg | neg |
| Group | 4.4% | 14.0% | 10.0% | 10.1% | 9.8% | 9.7% |
Depreciation per segment
| (SEK M) | 2022
Jul-Sep | 2021
Jul-Sep | 2022
Jan-Sep | 2021
Jan-Sep | 2021
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | 3 | 4 | 9 | 12 | 16 | 13 |
| Finland & Baltics | 2 | 2 | 7 | 8 | 11 | 10 |
| Parent Company & consolidated items | 23 | 23 | 68 | 69 | 91 | 90 |
| Group | 28 | 29 | 84 | 89 | 118 | 113 |
Investments in tangible and intangible assets per segment
| (SEK M) | 2022
Jul-Sep | 2021
Jul-Sep | 2022
Jan-Sep | 2021
Jan-Sep | 2021
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | 1 | 4 | 4 | 8 | 12 | 8 |
| Finland & Baltics | 21 | 3 | 38 | 5 | 11 | 44 |
| Parent Company & consolidated items | 0 | 0 | 0 | 3 | 3 | 0 |
| Group | 22 | 7 | 42 | 16 | 26 | 52 |
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-September 2022
Key data
| (SEK M unless otherwise stated) | 2022Jul-Sep | 2021Jul-Sep | 2022Jan-Sep | 2021Jan-Sep | 2021Full-year | Rolling12 months |
|---|---|---|---|---|---|---|
| Net sales | 1,514 | 1,375 | 5,403 | 3,878 | 5,388 | 6,913 |
| Earnings measurements | ||||||
| Gross result | 173 | 316 | 958 | 819 | 1,102 | 1,241 |
| Underlying gross result | 197 | 301 | 965 | 769 | 1,038 | 1,234 |
| Operating result (EBIT) | 40 | 219 | 537 | 463 | 621 | 695 |
| Underlying operating result (uEBIT) | 67 | 193 | 538 | 394 | 529 | 673 |
| Margin measurements | ||||||
| Gross margin | 11.5% | 23.0% | 17.7% | 21.1% | 20.4% | 18.0% |
| Underlying gross margin | 13.0% | 21.9% | 17.9% | 19.8% | 19.3% | 17.9% |
| Operating margin | 2.6% | 15.9% | 9.9% | 11.9% | 11.5% | 10.0% |
| Underlying operating margin | 4.4% | 14.0% | 10.0% | 10.1% | 9.8% | 9.7% |
| Capital structure | ||||||
| Net debt excl. IFRS 16 1) | 475 | 98 | 475 | 98 | 241 | 475 |
| Net debt/equity ratio excl. IFRS 16 1) | 27.4% | 7.6% | 27.4% | 7.6% | 17.0% | 27.4% |
| Working capital at end of period | 1,340 | 610 | 1,340 | 610 | 856 | 1,340 |
| Working capital (average) | 1,204 | 523 | 1,046 | 441 | 524 | 959 |
| Capital employed (average) excl. IFRS 16 1) | 2,197 | 1,467 | 1,991 | 1,393 | 1,457 | 1,905 |
| Working capital tied-up | 19.9% | 9.5% | 14.5% | 8.5% | 9.7% | 13.9% |
| Return | ||||||
| Return on capital employed excl. IFRS 16 1) | 6.8% | 59.1% | 35.4% | 43.6% | 42.0% | 36.0% |
| Per share data | ||||||
| Earnings per share (SEK) | 2.05 | 13.49 | 32.76 | 28.10 | 38.10 | 42.76 |
| Equity per share (SEK) | 133.30 | 98.68 | 133.30 | 98.68 | 108.84 | 133.30 |
| Cash flow from operating activities per share (SEK) | -14.14 | 0.50 | 4.00 | 11.36 | 2.49 | -4.87 |
| 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 | 10% | 85% | 39% | 39% | 47% | 45% |
| - of which organic tonnage growth | -15% | 21% | -8% | 14% | 11% | -6% |
| - of which price and mix changes | 19% | 65% | 42% | 27% | 38% | 48% |
| - of which currency effects | 3% | -1% | 2% | -2% | -2% | 1% |
| - of which acquisitions | 4% | - | 3% | - | - | 2% |
| - of which divestments | -1% | - | 0% | - | - | 0% |
| Other | ||||||
| Average number of employees | 656 | 625 | 651 | 619 | 621 | 653 |
| Inventory gains and losses | -27 | 26 | -1 | 69 | 92 | 22 |
| Shipped tonnage (thousands of tonnes) | 68 | 77 | 248 | 263 | 342 | 327 |
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-September 2022
Condensed parent company income statement
| (SEK M) | 2022
Jul-Sep | 2021
Jul-Sep | 2022
Jan-Sep | 2021
Jan-Sep | 2021
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Net sales | 30 | 21 | 90 | 65 | 104 | 129 |
| Administrative expenses | -14 | -10 | -43 | -33 | -44 | -54 |
| Other operating income and expenses | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating profit/loss | 16 | 11 | 47 | 32 | 60 | 75 |
| Financial items | 7 | 1 | 263 | 97 | 98 | 264 |
| Profit/loss after financial items | 23 | 12 | 310 | 129 | 158 | 339 |
| Appropriations | - | - | - | - | 124 | 124 |
| Profit/loss before tax | 23 | 12 | 310 | 129 | 282 | 463 |
| Tax | -4 | -2 | -11 | -6 | -38 | -43 |
| Profit/loss for the period, or comprehensive income for the period | 19 | 10 | 299 | 123 | 244 | 420 |
Condensed parent company balance sheet
| (SEK M) | 2022
Sep 30 | 2021
Sep 30 | 2021
Dec 31 |
| --- | --- | --- | --- |
| Intangible assets | 3 | 5 | 5 |
| Tangible assets | 0 | 0 | 0 |
| Financial assets | 868 | 900 | 880 |
| Total non-current assets | 871 | 905 | 885 |
| Current receivables | 249 | 96 | 353 |
| Cash and equivalents | 72 | 171 | 38 |
| Total current assets | 321 | 267 | 391 |
| Total assets | 1,192 | 1,172 | 1,276 |
| | | | |
| Equity | 1,102 | 838 | 959 |
| Non-current liabilities | 39 | 210 | 226 |
| Current liabilities | 51 | 124 | 91 |
| Total equity and liabilities | 1,192 | 1,172 | 1,276 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
Key data – multi-quarter summary
| (SEK M unless otherwise stated) | 2022 Jul-Sep | 2022 Apr-Jun | 2022 Jan-Mar | 2021 Oct-Dec | 2021 Jul-Sep | 2021 Apr-Jun | 2021 Jan-Mar | 2020 Oct-Dec | 2020 Jul-Sep |
|---|---|---|---|---|---|---|---|---|---|
| Net sales | 1,514 | 2,044 | 1,845 | 1,510 | 1,375 | 1,403 | 1,100 | 875 | 744 |
| Earnings measurements | |||||||||
| Gross result | 173 | 458 | 327 | 283 | 316 | 296 | 207 | 135 | 105 |
| Underlying gross result | 197 | 446 | 322 | 269 | 301 | 275 | 193 | 129 | 114 |
| Operating result (EBIT) | 40 | 313 | 184 | 158 | 219 | 158 | 86 | 18 | 4 |
| Underlying operating result (uEBIT) | 67 | 291 | 180 | 135 | 193 | 133 | 68 | 12 | 14 |
| Margin measurements | |||||||||
| Gross margin | 11.5% | 22.4% | 17.7% | 18.7% | 23.0% | 21.1% | 18.9% | 15.5% | 14.1% |
| Underlying gross margin | 13.0% | 21.8% | 17.5% | 17.8% | 21.9% | 19.6% | 17.5% | 14.8% | 15.3% |
| Operating margin | 2.6% | 15.3% | 10.0% | 10.4% | 15.9% | 11.3% | 7.8% | 2.1% | 0.5% |
| Underlying operating margin | 4.4% | 14.2% | 9.8% | 9.0% | 14.0% | 9.5% | 6.1% | 1.4% | 1.8% |
| Capital structure | |||||||||
| Net debt excl. IFRS 16 1) | 475 | 237 | 159 | 241 | 98 | 75 | 124 | 156 | 281 |
| Net debt/equity ratio excl. IFRS 16 1) | 27.4% | 14.0% | 10.1% | 17.0% | 7.6% | 6.7% | 12.6% | 17.0% | 30.0% |
| Working capital at end of period | 1,340 | 1,070 | 920 | 856 | 610 | 434 | 376 | 343 | 474 |
| Working capital (average) | 1,204 | 996 | 889 | 734 | 523 | 405 | 360 | 409 | 464 |
| Capital employed (average) excl. IFRS 16 1) | 2,197 | 1,977 | 1,785 | 1,639 | 1,467 | 1,387 | 1,318 | 1,272 | 1,258 |
| Working capital tied-up | 19.9% | 12.2% | 12.0% | 12.1% | 9.5% | 7.2% | 8.2% | 11.7% | 15.6% |
| Return | |||||||||
| Return on capital employed excl. IFRS 16 1) | 6.8% | 62.6% | 40.9% | 38.3% | 59.1% | 44.9% | 25.1% | 5.1% | 0.5% |
| Per share data | |||||||||
| Earnings per share (SEK) | 2.05 | 19.30 | 11.41 | 10.00 | 13.49 | 9.74 | 4.88 | 1.06 | -0.32 |
| Equity per share (SEK) | 133.30 | 130.04 | 120.80 | 108.84 | 98.68 | 84.82 | 75.55 | 69.73 | 70.87 |
| Cash flow from operating activities per share (SEK) | -14.14 | 9.79 | 8.35 | -8.87 | 0.50 | 6.24 | 4.62 | 11.72 | 0.06 |
| 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 | 10% | 46% | 68% | 73% | 85% | 50% | -2% | -11% | -24% |
| - of which organic tonnage growth | -15% | -14% | 4% | 4% | 21% | 28% | -3% | -1% | -16% |
| - of which price and mix changes | 19% | 54% | 62% | 70% | 65% | 25% | 4% | -8% | -6% |
| - of which currency effects | 3% | 2% | 2% | -1% | -1% | -3% | -3% | -2% | -2% |
| - of which acquisitions | 4% | 4% | - | - | - | - | - | - | - |
| - of which divestments | -1% | - | - | - | - | - | - | - | - |
| Other | |||||||||
| Average number of employees | 656 | 665 | 645 | 627 | 625 | 616 | 613 | 625 | 636 |
| Inventory gains and losses | -27 | 22 | 4 | 23 | 26 | 25 | 18 | 6 | -10 |
| Shipped tonnage (thousands of tonnes) | 68 | 88 | 92 | 79 | 77 | 98 | 88 | 76 | 64 |
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-September 2022
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) | 2022
Jul-Sep | 2021
Jul-Sep | 2022
Jan-Sep | 2021
Jan-Sep | 2021
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Operating result | 40 | 219 | 537 | 463 | 621 | 695 |
| Reversal of inventory gains (-)/losses (+) | 27 | -26 | 1 | -69 | -92 | -22 |
| Adjustment for items affecting comparability | – | – | – | – | – | – |
| Group | 67 | 193 | 538 | 394 | 529 | 673 |
Working capital
| (SEK M) | 2022
Sep 30 | 2021
Sep 30 | 2021
Dec 31 |
| --- | --- | --- | --- |
| Inventories | 1,418 | 770 | 1,033 |
| Accounts receivable | 934 | 866 | 653 |
| Other receivables | 23 | 34 | 39 |
| Deduction accounts payable | -692 | -783 | -641 |
| Deduction other current liabilities | -343 | -277 | -229 |
| Rounding | – | – | 1 |
| Group | 1,340 | 610 | 856 |
Average working capital is an average for each period based on quarterly data.
Net debt excl. IFRS 16
| (SEK M) | 2022
Sep 30 | 2021
Sep 30 | 2021
Dec 31 |
| --- | --- | --- | --- |
| Non-current interest-bearing liabilities and leasing liabilities | 970 | 679 | 681 |
| Current interest-bearing liabilities and leasing liabilities | 101 | 97 | 95 |
| Deduction leasing liabilities | -515 | -501 | -481 |
| Deduction financial assets | 0 | 0 | 0 |
| Deduction cash and equivalents | -80 | -176 | -54 |
| Rounding | -1 | -1 | – |
| Group | 475 | 98 | 241 |
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) | 2022
Sep 30 | 2021
Sep 30 | 2021
Dec 31 |
| --- | --- | --- | --- |
| Equity excl. IFRS 16 | 1,738 | 1,287 | 1,420 |
| Non-current interest-bearing liabilities and leasing liabilities | 970 | 679 | 681 |
| Current interest-bearing liabilities and leasing liabilities | 101 | 97 | 95 |
| Deduction leasing liabilities | -515 | -501 | -481 |
| Rounding | – | – | 1 |
| Group | 2,294 | 1,562 | 1,716 |
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-September 2022
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 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 2021 annual report for other definitions of key data.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022
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 650 employees and sales of SEK 5.4 billion in 2021. The head office is located in Malmö, Sweden.
Number of employees
approx. 650
Net sales
SEK 5.4
billion
BUSINESS IDEA
BE Group is an independent efficient distributor of steel, stainless steel, aluminum and value adding services to Nordic manufacturing and construction companies.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2022