AI assistant
BE Group AB Interim / Quarterly Report 2022
3140_10-k_2023-01-26_0c3d4c36-08cb-4497-b47d-2df8ddeefddc.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
YEAR-END REPORT
BE Group AB (publ)
January – December 2022
Fourth quarter 2022
- Net sales decreased by 3% to SEK 1,472 M (1,510)
- The underlying operating result amounted to SEK -50 M (135)
- The operating result amounted to SEK -119 M (158), including inventory gains and losses of SEK -69 M (23)
- Result after tax amounted to SEK -101 M (130)
- Cash flow from operating activities increased to SEK 152 M (-115)
- Earnings per share amounted to SEK -7.79 (10.00)
Full-year 2022
- Net sales increased by 28% to SEK 6,875 M (5,388)
- The underlying operating result amounted to SEK 488 M (529)
- The operating result amounted to SEK 418 M (621), including inventory gains and losses of SEK -70 M (92)
- Result after tax amounted to SEK 324 M (495)
- Cash flow from operating activities increased to SEK 204 M (32)
- Earnings per share amounted to SEK 24.96 (38.10)
- During the year, the assets of Hercules Rebar and the shares of Goodtech Solutions Manufacturing AB was acquired and Lecor Stålteknik was divested
- The Board of Directors proposes dividend of SEK 12 (12) per share for the financial year of 2022 to be paid in two installments; SEK 6 per share in April 2023 and SEK 6 per share in October 2023
"The prevailing business environment during the fourth quarter resulted in decreased demand. At the same time, steel prices have dropped sharply compared to before summer when larger purchases took place, which led to a significantly decreased gross margin. On the positive side is cash flow from operating activities, which amounted to SEK 152 M (-115), primarily related to freed up working capital through adjustment of inventory replenishment"
Peter Andersson, President and CEO
| Results overview | 2022 Oct-Dec | 2021 Oct-Dec | Change | 2022 Jan-Dec | 2021 Jan-Dec | Change |
|---|---|---|---|---|---|---|
| Tonnage, thousands of tonnes | 72 | 79 | -7 | 320 | 342 | -22 |
| Net sales, SEK M | 1,472 | 1,510 | -38 | 6,875 | 5,388 | 1,487 |
| Underlying operating result, SEK M | -50 | 135 | -185 | 488 | 529 | -41 |
| Operating result, SEK M | -119 | 158 | -277 | 418 | 621 | -203 |
| Profit/loss for the period, SEK M | -101 | 130 | -231 | 324 | 495 | -171 |
| Earnings per share, SEK | -7.79 | 10.00 | -17.79 | 24.96 | 38.10 | -13.14 |
| Cash flow from operating activities, SEK M | 152 | -115 | 267 | 204 | 32 | 172 |
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 2022, the Group reported sales of SEK 6.9 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 / Year-end report January-December 2022
"The prevailing business environment during the fourth quarter resulted in decreased demand"
Statement from the CEO
The prevailing business environment during the fourth quarter resulted in decreased demand. At the same time, steel prices have dropped sharply compared to before summer when larger purchases took place, which led to a significantly decreased gross margin. Net sales fell marginally by 3% to SEK 1,472 M (1,510) compared with the previous year while the underlying operating result decreased to SEK -50 M (135). Operating result, including inventory gains and losses, amounted to SEK -119 M (158).
Net sales in Business area Sweden & Poland increased with 4% in the quarter while the operating result decreased to SEK -15 M (96) which is explained by a decrease in gross margin and inventory losses of SEK 28 M. Net sales in Business area Finland & Baltics decreased with 9% in the quarter while the operating result decreased to SEK -98 M (84) which is also explained by a decrease in gross margin and inventory losses of SEK 39 M. Net sales for Sweden & Poland consist of 20% direct sales and has a larger share of contracted customers and long cooperations. The business for Finland & Baltics is shorter in its character and is therefore more affected by the material price decrease. Similarly, the result rose quicker during the year in Finland & Baltics when the prices rose rapidly in connection with Russia's invasion of Ukraine.
The joint venture, ArcelorMittal BE Group SSC AB, contributed negatively with SEK 2 M which is significantly weaker than the fourth quarter previous year when they contributed positively with SEK 25 M.
On the positive side is cash flow from operating activities, which amounted to SEK 152 M (-115), primarily related to freed up working capital through adjustment of inventory replenishment.
Net sales for full-year 2022 amounted to SEK 6,875 M (5,388) and the operating result, including inventory gains and losses, amounted to SEK 418 M (621), corresponding to an operating margin of 6.1% (11.5).
The surrounding world
The close-down of blast furnaces in Europe amounts to about 20% of the total capacity, at the same time that the real need has decreased by about 6%. This has so far resulted in longer lead times and increased spot prices. In the beginning of 2023, some steel producers had stopped the incoming orders in order to plan their capacity and not promise more then what can be produced. The conclusion is that the capacity reductions have worked. If no external events occur, it's reasonable to assume that the prices will be stabilized on the levels of today which is just above the lowest levels in the beginning of December. Analysis firms confirm the conclusion.
Regardless of external factors, a lot of steel is used even in bad times. BE Group will, just like usual, handle the situation with a focus on customers, hard work and a belief in our basic idea.
Investment in the future
In the second quarter of 2023, a new, fully automated sawing and machining line for long products will be brought into operation at BE Group's Turku facility in Finland. In addition to considerable rationalization and efficiency enhancement, the investment will both strengthen and broaden BE Group's offering to new and existing customers. Regular transports between BE Group's other facilities mean that the investment is also intended to support markets outside Finland.
During the fourth quarter, BE Group moved its head office and sales office in the southern parts of Sweden to new, efficient, facilities in Malmö which also leads to rent savings.
Peter Andersson
President and CEO
| Bridge 2021-2022 operating result SEK M | Q1 | Q2 | Q3 | Q4 | Jan-Dec |
|---|---|---|---|---|---|
| Operating result 2021 | 86 | 158 | 219 | 158 | 621 |
| Reversal of inventory gains (-)/losses (+) | -18 | -25 | -26 | -23 | -92 |
| Underlying operating result 2021 | 68 | 133 | 193 | 135 | 529 |
| Change in sales | 131 | 126 | 30 | -7 | 280 |
| Change in underlying gross margin | -1 | 45 | -134 | -153 | -243 |
| Change in overhead costs | -18 | -13 | -22 | -25 | -78 |
| Underlying operating result 2022 | 180 | 291 | 67 | -50 | 488 |
| Reversal of inventory gains (+)/losses (-) | 4 | 22 | -27 | -69 | -70 |
| Operating result 2022 | 184 | 313 | 40 | -119 | 418 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2022
Comments on the report
Fourth quarter
The Group's consolidated net sales for the period decreased by 3 percent compared to last year, amounting to SEK 1,472 M (1,510). The decrease is explained by organic tonnage growth of -14 percent partly compensated by positive price and mix effects of 5 percent, currency effects of 5 percent and acquisition and divestment of 1 percent. The weaker economy combined with high inventories throughout the chain contributed to continued decline in demand and lower steel prices in the fourth quarter. Inventory sales to both the construction and manufacturing industries decreased while production sales to OEM customers remained stable.
Gross profit decreased to SEK 51 M (283) with a low gross margin of 3.4 percent (18.7). The operating result amounted to SEK -119 M (158), corresponding to an operating margin of -8.1 percent (10.4), of which inventory gains and losses of SEK -69 M (23). Lower demand and continued falling steel prices contributed to inventory losses and thus the deteriorated result. Adjusted for inventory gains and losses, the underlying operating result amounted to SEK -50 M (135) and the underlying operating margin to -3.4 percent (9.0).
Full-year 2022
During the year, the Group's net sales increased by 28 percent compared to last year and amounted to SEK 6,875 M (5,388). The sales growth is explained by positive price and mix effects of 32 percent, acquisitions of 3 percent and currency effects of 2 percent counteracted by organic tonnage growth of -9 percent.
Gross profit amounted to SEK 1,009 M (1,102) with a gross margin of 14.7 percent (20.4).
The operating result amounted to SEK 418 M (621), corresponding to an operating margin of 6.1 percent (11.5). Adjusted for inventory gains and losses of SEK -70 M (92), the underlying operating result amounted to SEK 488 M (529). The underlying operating margin amounted to 7.1 percent (9.8).
The sanctions directed at Russia, a shortage of input materials and rising energy costs caused considerable price increases among producers during the first six months. The current economic downturn and high inventory levels have, during the second half of the year, led to shorter delivery times and a dampening of price pressure from suppliers. Steel producers have adapted to lower market needs by reducing capacity.
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 closely monitoring developments and working continuously 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 / Year-end report January-December 2022
The business area includes the Group's operations in Sweden consisting of the companies BE Group Sverige, BE Group Produktion Arvika, the joint venture ArcelorMittal BE Group SSC AB as well as the Polish operation BE Group Poland. Lecor Stålteknik was divested on July 1, 2022.
Fourth quarter
Net sales increased by 4 percent in the fourth quarter compared to last year and amounted to SEK 777 M (744). The higher sales is explained by positive price and mix effects of 14 percent, acquisitions and divestments of 2 percent counteracted by organic tonnage growth of -12 percent. The operating result amounted to SEK -15 M (96). Adjusted for inventory gains and losses of SEK -28 M (16), the underlying operating result amounted to SEK 13 M (80).
The Swedish operations provided a lower underlying operating result compared with the strong previous year, while profitability in the Polish operations was unchanged. Lower demand has led to falling steel prices and pressure on gross margins.
Our joint venture AMBE provided a lower operating result due to decreased demand and falling prices on thin sheets, which resulted in inventory losses leading to a negative contribution of SEK -2 M (25).
Full-year 2022
Net sales increased by 30 percent compared to last year, amounting to SEK 3,408 M (2,625). Sales growth is explained by positive price and mix effects of 35 percent, acquisitions and divestments of 5 percent counteracted by organic tonnage growth of -10 percent. Operating result amounted to SEK 217 M (282). Adjusted for inventory gains and losses of SEK -19 M (61), the underlying operating result increased to SEK 236 M (221).
During the first six months, the assets of Hercules Rebar was acquired. During the second half of the year, Goodtech Solutions Manufacturing AB, from now on BE Group Produktion Arvika, was acquired and Lecor Stålteknik was divested.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2022
BUSINESS AREA
FINLAND & BALTICS
The business area includes the Group's operations in Finland and the three Baltic countries.
Fourth quarter
Net sales amounted to SEK 703 M (771) which is a decrease by 9 percent compared to the fourth quarter last year. It is explained by organic tonnage growth of -15 percent and price and mix effects of -3 percent partly compensated by positive currency effects of 9 percent. The operating result amounted to SEK -98 M (84) and adjusted for inventory gains and losses of SEK -39 M (7), the underlying operating result amounted to SEK -59 M (77).
The Finnish operations delivered a negative underlying operating result. Lower demand combined with high inventory levels and falling steel prices resulted in inventory losses and a low gross margin.
The Baltic operations also delivered a negative result as a consequence of low demand and falling steel prices.
Full-year 2022
Net sales increased by 25 percent compared to last year, amounting to SEK 3,497 M (2,790). The higher sales is explained by positive price and mix effects of 29 percent and currency effects of 5 percent counteracted by organic tonnage growth of -9 percent. The operating result amounted to SEK 217 M (370) and adjusted for inventory gains and losses of SEK -50 M (31), the underlying operating result amounted to SEK 267 M (339).
The Russian invasion of Ukraine led to sharply rising prices, a strong earnings trend and longer delivery times in the first six months. Reduced demand and high costs for incoming materials combined with falling steel prices have resulted in a low gross margin and a negative operating result in the second half of the year.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2022
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 business areas.
Sales for the fourth quarter of the Parent Company, BE Group AB (publ), amounted to SEK 58 M (39) during the period and derived from intra-Group services. These intra-Group services mainly include the subsidiaries' use of the BE Group brand and central expenses for IT and Finance. These expenses are distributed and invoiced to all subsidiaries in the Group. In the result follow-up of the business areas, these intra-group expenses have been eliminated except for expenses for IT and business systems. Out of the total costs for the Parent Company, of SEK -25 M (-11), SEK 25 M (8) was allocated to the subsidiaries. The operating result amounted to SEK 34 M (28) for the quarter. For the full-year, net sales amounted to SEK 148 M (104) and the operating result to SEK 81 M (60).
Net financial items for the quarter amounted to SEK 3 M (1). Profit before tax amounted to SEK 76 M (153) and profit after tax amounted to SEK 61 M (121). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 31 M (38).
Net financial items for the full-year amounted to SEK 266 M (98). Profit before tax amounted to SEK 386 M (282) and profit after tax was SEK 360 M (244). 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 fourth quarter amounted to SEK -5 M (0), of which net interest amounted to SEK -6 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 full-year amounted to SEK -18 M (-17) and net interest to SEK -18 M (-14), of which SEK -10 M (-10) relates to leasing according to IFRS 16.
Taxes for the fourth quarter amounted to SEK 23 M (-28). Profit after tax amounted to SEK -101 M (130) and was SEK 324 M (495) for the full-year.
Cash flow
The Group's consolidated working capital amounted to SEK 1,130 M (856) at the end of the period and the average working capital tied-up for the fourth quarter was 21.0 percent (12.1). The higher working capital is mainly explained by lower accounts payable as a result of reduced purchases and increased inventory value which by the end of the period amounted to SEK 1,127 M (1,033). The increased inventory value is caused by increased average prices, acquisitions and decreased demand in the second half of the year. Cash flow from operating activities amounted to SEK 152 M (-115) during the quarter and to SEK 204 M (32) for the full-year. Cash flow from investing activities amounted to SEK -6 M (-10) during the fourth quarter and SEK -56 M (-25) for the full-year. Cash flow after investments thus amounted to SEK 146 M (-125) during the fourth quarter and SEK 148 M (7) 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 200 M (154) and the interest-bearing net debt excl. IFRS 16 was SEK 357 M (241). Equity amounted to SEK 1,637 M (1,413) at the end of the period.
Organization, structure and employees
The number of employees increased to 665 compared to 627 at the same time last year. The average number of employees during the year amounted to 654 (621).
THE GROUP'S CASH FLOW FROM OPERATING ACTIVITIES, SEK M
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 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.
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.
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 (12) per share for the financial year of 2022 to be paid in two installments; SEK 6 per share in April 2023 and SEK 6 per share in October 2023 which corresponds to approximately SEK 156 M in total.
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 have had a major impact on the European steel market with high energy prices, lack of material and sharp price increases as a consequence. This has led to a change in the European steel market where alternative producers have replaced the need in the delivery chain and in that way stabilized market supply. BE Group is monitoring the development closely since 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 / Year-end report January-December 2022
Future information
Future reporting dates
BE Group AB (publ) intends to publish financial information on the following dates:
- 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
- The Interim Report for January–June 2023 will be published on July 13, 2023
- The Interim Report for January–September 2023 will be published on October 18, 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, January 26, 2023
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: Krusegatan 19B
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 26, 2023.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2022
Condensed consolidated income statement
| (SEK M) | Note | 2022 Oct-Dec | 2021 Oct-Dec | 2022 Full-year | 2021 Full-year |
|---|---|---|---|---|---|
| Net sales | 1,472 | 1,510 | 6,875 | 5,388 | |
| Cost of goods sold | 1 | -1,421 | -1,227 | -5,866 | -4,286 |
| Gross profit | 51 | 283 | 1,009 | 1,102 | |
| Selling expenses | 1 | -123 | -106 | -482 | -418 |
| Administrative expenses | 1 | -44 | -27 | -134 | -110 |
| Other operating income and expenses | -1 | -17 | -9 | -18 | |
| Participation in joint venture | -2 | 25 | 34 | 65 | |
| Operating profit/loss | -119 | 158 | 418 | 621 | |
| Financial items | -5 | 0 | -18 | -17 | |
| Profit/loss before tax | -124 | 158 | 400 | 604 | |
| Tax | 23 | -28 | -76 | -109 | |
| Profit/loss for the period | -101 | 130 | 324 | 495 | |
| Earnings per share (SEK) | -7.79 | 10.00 | 24.96 | 38.10 | |
| Earnings per share after dilution (SEK) | -7.79 | 10.00 | 24.96 | 38.10 |
Consolidated statement of comprehensive income
| (SEK M) | 2022 Oct-Dec | 2021 Oct-Dec | 2022 Full-year | 2021 Full-year |
|---|---|---|---|---|
| Profit/loss for the period | -101 | 130 | 324 | 495 |
| Other comprehensive income | ||||
| Items that may later be reclassified to profit/loss for the period | ||||
| Translation differences | 7 | 2 | 56 | 13 |
| Total other comprehensive income | 7 | 2 | 56 | 13 |
| Comprehensive income for the period | -94 | 132 | 380 | 508 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2022
Condensed consolidated balance sheet
| (SEK M) | Note | 2022 Dec 31 | 2021 Dec 31 |
|---|---|---|---|
| Goodwill | 583 | 561 | |
| Other intangible assets | 7 | 9 | |
| Tangible assets | 138 | 90 | |
| Right of use assets | 494 | 479 | |
| Investment in joint venture | 183 | 182 | |
| Financial assets | 0 | 0 | |
| Deferred tax assets | 6 | 5 | |
| Total non-current assets | 1,411 | 1,326 | |
| Inventories | 1,127 | 1,033 | |
| Accounts receivable | 675 | 653 | |
| Other receivables | 78 | 39 | |
| Cash and equivalents | 50 | 54 | |
| Total current assets | 1,930 | 1,779 | |
| Total assets | 2 | 3,341 | 3,105 |
| Equity | 1,637 | 1,413 | |
| Non-current interest-bearing liabilities | 406 | 287 | |
| Non-current leasing liabilities | 405 | 394 | |
| Deferred tax liability | 48 | 42 | |
| Total non-current liabilities | 859 | 723 | |
| Current interest-bearing liabilities | 1 | 8 | |
| Current leasing liabilities | 94 | 87 | |
| Accounts payable | 480 | 641 | |
| Other current liabilities | 269 | 229 | |
| Other current provisions | 1 | 4 | |
| Total current liabilities | 845 | 969 | |
| Total equity and liabilities | 2 | 3,341 | 3,105 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2022
Condensed consolidated cash-flow statement
| (SEK M) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Operating result | -119 | 158 | 418 | 621 |
| Adjustment for non-cash items | 85 | -8 | 173 | 28 |
| – of which, amortization/depreciation | 31 | 29 | 115 | 118 |
| – of which, other items | 54 | -37 | 58 | -90 |
| Interest received | 2 | 0 | 6 | 2 |
| Interest paid | -8 | -3 | -23 | -17 |
| Income tax paid | -21 | -60 | -53 | -67 |
| Change in working capital | 213 | -202 | -317 | -535 |
| Cash flow from operating activities | 152 | -115 | 204 | 32 |
| Acquisitions/divestments of subsidiaries | 0 | – | -7 | – |
| Changes in intangible assets | 0 | -1 | -1 | -1 |
| Changes in tangible assets | -6 | -9 | -48 | -24 |
| Other cash flow from investing activities | 0 | 0 | 0 | 0 |
| Cash flow after investments | 146 | -125 | 148 | 7 |
| Cash flow from financing activities 1) | -177 | -2 | -155 | -121 |
| Cash flow for the period | -31 | -127 | -7 | -114 |
| Translation differences in cash and equivalents | 1 | 5 | 3 | 2 |
| Change in cash and equivalents | -30 | -122 | -4 | -112 |
1) In the cash flow from financing activities for the full-year 2022 SEK -156 M relates to dividend paid for 2021.
Condensed statement of changes in equity
| (SEK M) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Equity at beginning of period | 1,731 | 1,281 | 1,413 | 905 |
| Comprehensive income for the period | -94 | 132 | 380 | 508 |
| Dividend | – | – | -156 | – |
| Equity at end of period | 1,637 | 1,413 | 1,637 | 1,413 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2022
Note 1 Amortizations and depreciations
| (SEK M) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Amortization of intangible assets | 1 | 0 | 4 | 2 |
| Depreciation of tangible assets | 6 | 6 | 21 | 23 |
| Depreciation of right of use assets | 24 | 23 | 90 | 93 |
| Total amortizations and depreciations | 31 | 29 | 115 | 118 |
Note 2 Valuation of financial assets and liabilities
Fair value for long-term borrowing corresponds in all material respects with the carrying amount as the borrowing runs at a variable interest rate and the own credit risk has not changed significantly. Fair value for other financial assets and liabilities corresponds in all material respects with the carrying amount as they are short-term and the discounting effect is not considered to be significant.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2022
Segment reporting
Net sales by business area
| (SEK M) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Sweden & Poland | 777 | 744 | 3,408 | 2,625 |
| Finland & Baltics | 703 | 771 | 3,497 | 2,790 |
| Parent Company & consolidated items | -8 | -5 | -30 | -27 |
| Group | 1,472 | 1,510 | 6,875 | 5,388 |
Net sales by business area and product group
| 2022 | Sweden & Poland | Finland & Baltics | Parent company & consolidated items | Total | ||||
|---|---|---|---|---|---|---|---|---|
| (SEK M) | 2022 | |||||||
| Oct-Dec | 2022 | |||||||
| Full-year | 2022 | |||||||
| Oct-Dec | 2022 | |||||||
| Full-year | 2022 | |||||||
| Oct-Dec | 2022 | |||||||
| Full-year | 2022 | |||||||
| Oct-Dec | 2022 | |||||||
| Full-year | ||||||||
| Long steel products | 391 | 1,773 | 212 | 1,052 | 0 | 0 | 603 | 2,825 |
| Flat steel products | 275 | 1,056 | 345 | 1,747 | 0 | 0 | 620 | 2,803 |
| Stainless steel | 79 | 397 | 100 | 496 | 0 | 0 | 179 | 893 |
| Aluminium | 21 | 95 | 35 | 161 | 0 | 0 | 56 | 256 |
| Other | 11 | 87 | 11 | 41 | -8 | -30 | 14 | 98 |
| Total | 777 | 3,408 | 703 | 3,497 | -8 | -30 | 1,472 | 6,875 |
| 2021 | Sweden & Poland | Finland & Baltics | Parent company & consolidated items | Total | ||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (SEK M) | 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 |
Net sales by country based on customer's domicile
| (SEK M) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Sweden | 690 | 731 | 3,261 | 2,575 |
| Finland | 651 | 693 | 3,162 | 2,442 |
| Other | 131 | 86 | 452 | 371 |
| Group | 1,472 | 1,510 | 6,875 | 5,388 |
Shipped tonnage per segment
| (Thousands of thonnes) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Sweden & Poland | 37 | 38 | 157 | 164 |
| Finland & Baltics | 35 | 41 | 164 | 180 |
| Parent Company & consolidated items | 0 | 0 | -1 | -2 |
| Group | 72 | 79 | 320 | 342 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2022
Operating result (EBIT) per segment
| (SEK M) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Sweden & Poland | -15 | 96 | 217 | 282 |
| Finland & Baltics | -98 | 84 | 217 | 370 |
| Parent Company & consolidated items | -6 | -22 | -16 | -31 |
| Group | -119 | 158 | 418 | 621 |
Operating margin per segment
| (SEK M) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Sweden & Poland | -2.0% | 12.8% | 6.4% | 10.7% |
| Finland & Baltics | -14.0% | 10.9% | 6.2% | 13.2% |
| Parent Company & consolidated items | neg | neg | neg | neg |
| Group | -8.1% | 10.4% | 6.1% | 11.5% |
Underlying operating result (uEBIT) per segment 1)
| (SEK M) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Sweden & Poland | 13 | 80 | 236 | 221 |
| Finland & Baltics | -59 | 77 | 267 | 339 |
| Parent Company & consolidated items | -4 | -22 | -15 | -31 |
| Group | -50 | 135 | 488 | 529 |
Underlying operating margin per segment 2)
| (SEK M) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Sweden & Poland | 1.7% | 10.8% | 6.9% | 8.4% |
| Finland & Baltics | -8.3% | 10.0% | 7.6% | 12.1% |
| Parent Company & consolidated items | neg | neg | neg | neg |
| Group | -3.4% | 9.0% | 7.1% | 9.8% |
Depreciation per segment
| (SEK M) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Sweden & Poland | 3 | 4 | 12 | 16 |
| Finland & Baltics | 4 | 3 | 11 | 11 |
| Parent Company & consolidated items | 24 | 22 | 92 | 91 |
| Group | 31 | 29 | 115 | 118 |
Investments in tangible and intangible assets per segment
| (SEK M) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Sweden & Poland | 2 | 4 | 6 | 12 |
| Finland & Baltics | 9 | 6 | 47 | 11 |
| Parent Company & consolidated items | 0 | 0 | 0 | 3 |
| Group | 11 | 10 | 53 | 26 |
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 2022
Key data
| (SEK M unless otherwise stated) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Net sales | 1,472 | 1,510 | 6,875 | 5,388 |
| Earnings measurements | | | | |
| Gross result | 51 | 283 | 1,009 | 1,102 |
| Underlying gross result | 110 | 269 | 1,075 | 1,038 |
| Operating result (EBIT) | -119 | 158 | 418 | 621 |
| Underlying operating result (uEBIT) | -50 | 135 | 488 | 529 |
| Margin measurements | | | | |
| Gross margin | 3.4% | 18.7% | 14.7% | 20.4% |
| Underlying gross margin | 7.4% | 17.8% | 15.6% | 19.3% |
| Operating margin | -8.1% | 10.4% | 6.1% | 11.5% |
| Underlying operating margin | -3.4% | 9.0% | 7.1% | 9.8% |
| Capital structure | | | | |
| Net debt excl. IFRS 16^{1)} | 357 | 241 | 357 | 241 |
| Net debt/equity ratio excl. IFRS 16^{1)} | 21.7% | 17.0% | 21.7% | 17.0% |
| Working capital at end of period | 1,130 | 856 | 1,130 | 856 |
| Working capital (average) | 1,234 | 734 | 1,064 | 524 |
| Capital employed (average) excl. IFRS 16^{1)} | 2,173 | 1,639 | 2,003 | 1,457 |
| Working capital tied-up | 21.0% | 12.1% | 15.5% | 9.7% |
| Return | | | | |
| Return on capital employed excl. IFRS 16^{1)} | -22.3% | 38.3% | 20.3% | 42.0% |
| Per share data | | | | |
| Earnings per share (SEK) | -7.79 | 10.00 | 24.96 | 38.10 |
| Earnings per share after dilution (SEK) | -7.79 | 10.00 | 24.96 | 38.10 |
| Equity per share (SEK) | 126.11 | 108.84 | 126.11 | 108.84 |
| Cash flow from operating activities per share (SEK) | 11.75 | -8.87 | 15.72 | 2.49 |
| Shares outstanding at period end (thousands) | 12,983 | 12,983 | 12,983 | 12,983 |
| Average number of shares (thousands) | 12,983 | 12,983 | 12,983 | 12,983 |
| Growth | | | | |
| Sales growth | -3% | 73% | 28% | 47% |
| - of which organic tonnage growth | -14% | 4% | -9% | 11% |
| - of which price and mix changes | 5% | 70% | 32% | 38% |
| - of which currency effects | 5% | -1% | 2% | -2% |
| - of which acquisitions | 3% | - | 3% | - |
| - of which divestments | -2% | - | 0% | - |
| Other | | | | |
| Average number of employees | 656 | 627 | 654 | 621 |
| Inventory gains and losses | -69 | 23 | -70 | 92 |
| Shipped tonnage (thousands of tonnes) | 72 | 79 | 320 | 342 |
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 2022
Condensed parent company income statement
| (SEK M) | 2022
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Net sales | 58 | 39 | 148 | 104 |
| Administrative expenses | -25 | -11 | -68 | -44 |
| Other operating income and expenses | 1 | 0 | 1 | 0 |
| Operating profit/loss | 34 | 28 | 81 | 60 |
| Financial items | 3 | 1 | 266 | 98 |
| Profit/loss after financial items | 37 | 29 | 347 | 158 |
| Appropriations | 39 | 124 | 39 | 124 |
| Profit/loss before tax | 76 | 153 | 386 | 282 |
| Tax | -15 | -32 | -26 | -38 |
| Profit/loss for the period, or comprehensive income for the period | 61 | 121 | 360 | 244 |
Condensed parent company balance sheet
| (SEK M) | 2022
Dec 31 | 2021
Dec 31 |
| --- | --- | --- |
| Intangible assets | 3 | 5 |
| Tangible assets | 0 | 0 |
| Financial assets | 873 | 880 |
| Total non-current assets | 876 | 885 |
| Current receivables | 377 | 353 |
| Cash and equivalents | 31 | 38 |
| Total current assets | 408 | 391 |
| Total assets | 1,284 | 1,276 |
| Equity | 1,163 | 959 |
| Non-current liabilities | 39 | 226 |
| Current liabilities | 82 | 91 |
| Total equity and liabilities | 1,284 | 1,276 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2022
Key data – multi-quarter summary
| (SEK M unless otherwise stated) | 2022 Oct-Dec | 2022 Jul-Sep | 2022 Apr-Jun | 2022 Jan-Mar | 2021 Oct-Dec | 2021 Jul-Sep | 2021 Apr-Jun | 2021 Jan-Mar | 2020 Oct-Dec |
|---|---|---|---|---|---|---|---|---|---|
| Net sales | 1,472 | 1,514 | 2,044 | 1,845 | 1,510 | 1,375 | 1,403 | 1,100 | 875 |
| Earnings measurements | |||||||||
| Gross result | 51 | 173 | 458 | 327 | 283 | 316 | 296 | 207 | 135 |
| Underlying gross result | 110 | 197 | 446 | 322 | 269 | 301 | 275 | 193 | 129 |
| Operating result (EBIT) | -119 | 40 | 313 | 184 | 158 | 219 | 158 | 86 | 18 |
| Underlying operating result (uEBIT) | -50 | 67 | 291 | 180 | 135 | 193 | 133 | 68 | 12 |
| Margin measurements | |||||||||
| Gross margin | 3.4% | 11.5% | 22.4% | 17.7% | 18.7% | 23.0% | 21.1% | 18.9% | 15.5% |
| Underlying gross margin | 7.4% | 13.0% | 21.8% | 17.5% | 17.8% | 21.9% | 19.6% | 17.5% | 14.8% |
| Operating margin | -8.1% | 2.6% | 15.3% | 10.0% | 10.4% | 15.9% | 11.3% | 7.8% | 2.1% |
| Underlying operating margin | -3.4% | 4.4% | 14.2% | 9.8% | 9.0% | 14.0% | 9.5% | 6.1% | 1.4% |
| Capital structure | |||||||||
| Net debt excl. IFRS 16 1) | 357 | 475 | 237 | 159 | 241 | 98 | 75 | 124 | 156 |
| Net debt/equity ratio excl. IFRS 16 1) | 21.7% | 27.4% | 14.0% | 10.1% | 17.0% | 7.6% | 6.7% | 12.6% | 17.0% |
| Working capital at end of period | 1,130 | 1,340 | 1,070 | 920 | 856 | 610 | 434 | 376 | 343 |
| Working capital (average) | 1,234 | 1,204 | 996 | 889 | 734 | 523 | 405 | 360 | 409 |
| Capital employed (average) excl. IFRS 16 1) | 2,173 | 2,197 | 1,977 | 1,785 | 1,639 | 1,467 | 1,387 | 1,318 | 1,272 |
| Working capital tied-up | 21.0% | 19.9% | 12.2% | 12.0% | 12.1% | 9.5% | 7.2% | 8.2% | 11.7% |
| Return | |||||||||
| Return on capital employed excl. IFRS 16 1) | -22.3% | 6.8% | 62.6% | 40.9% | 38.3% | 59.1% | 44.9% | 25.1% | 5.1% |
| Per share data | |||||||||
| Earnings per share (SEK) | -7.79 | 2.05 | 19.30 | 11.41 | 10.00 | 13.49 | 9.74 | 4.88 | 1.06 |
| Earnings per share after dilution (SEK) | -7.79 | 2.05 | 19.30 | 11.41 | 10.00 | 13.49 | 9.74 | 4.88 | 1.06 |
| Equity per share (SEK) | 126.11 | 133.30 | 130.04 | 120.80 | 108.84 | 98.68 | 84.82 | 75.55 | 69.73 |
| Cash flow from operating activities per share (SEK) | 11.75 | -14.14 | 9.79 | 8.35 | -8.87 | 0.50 | 6.24 | 4.62 | 11.72 |
| 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 | -3% | 10% | 46% | 68% | 73% | 85% | 50% | -2% | -11% |
| - of which organic tonnage growth | -14% | -15% | -14% | 4% | 4% | 21% | 28% | -3% | -1% |
| - of which price and mix changes | 5% | 19% | 54% | 62% | 70% | 65% | 25% | 4% | -8% |
| - of which currency effects | 5% | 3% | 2% | 2% | -1% | -1% | -3% | -3% | -2% |
| - of which acquisitions | 3% | 4% | 4% | - | - | - | - | - | - |
| - of which divestments | -2% | -1% | - | - | - | - | - | - | - |
| Other | |||||||||
| Average number of employees | 656 | 656 | 665 | 645 | 627 | 625 | 616 | 613 | 625 |
| Inventory gains and losses | -69 | -27 | 22 | 4 | 23 | 26 | 25 | 18 | 6 |
| Shipped tonnage (thousands of tonnes) | 72 | 68 | 88 | 92 | 79 | 77 | 98 | 88 | 76 |
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 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
Oct-Dec | 2021
Oct-Dec | 2022
Full-year | 2021
Full-year |
| --- | --- | --- | --- | --- |
| Operating result | -119 | 158 | 418 | 621 |
| Reversal of inventory gains (-)/losses (+) | 69 | -23 | 70 | -92 |
| Adjustment for items affecting comparability | - | - | - | - |
| Group | -50 | 135 | 488 | 529 |
Working capital
| (SEK M) | 2022
Dec 31 | 2021
Dec 31 |
| --- | --- | --- |
| Inventories | 1,127 | 1,033 |
| Accounts receivable | 675 | 653 |
| Other receivables | 78 | 39 |
| Deduction accounts payable | -480 | -641 |
| Deduction other current liabilities | -269 | -229 |
| Rounding | -1 | 1 |
| Group | 1,130 | 856 |
Average working capital is an average for each period based on quarterly data.
Net debt excl. IFRS 16
| (SEK M) | 2022
Dec 31 | 2021
Dec 31 |
| --- | --- | --- |
| Non-current interest-bearing liabilities and leasing liabilities | 811 | 681 |
| Current interest-bearing liabilities and leasing liabilities | 95 | 95 |
| Deduction leasing liabilities | -499 | -481 |
| Deduction financial assets | 0 | 0 |
| Deduction cash and equivalents | -50 | -54 |
| Rounding | - | - |
| Group | 357 | 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
Dec 31 | 2021
Dec 31 |
| --- | --- | --- |
| Equity excl. IFRS 16 | 1,645 | 1,420 |
| Non-current interest-bearing liabilities and leasing liabilities | 811 | 681 |
| Current interest-bearing liabilities and leasing liabilities | 95 | 95 |
| Deduction leasing liabilities | -499 | -481 |
| Rounding | - | 1 |
| Group | 2,052 | 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 / Year-end report January-December 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 / Year-end report January-December 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 6.9 billion in 2022. The head office is located in Malmö, Sweden.
Number of employees
approx. 650
Net sales
SEK 6.9
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.
- Sales
- Production
- Warehouse
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Year-end report January-December 2022