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BE Group AB Interim / Quarterly Report 2023
3140_10-q_2023-04-20_f1064c20-acf9-4e1d-a908-eecf4ff664e6.pdf
Interim / Quarterly Report
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BE GROUP
INTERIM REPORT
BE Group AB (publ)
January – March 2023
First quarter 2023
- Net sales decreased by 16% to SEK 1,558 M (1,845)
- The underlying operating result amounted to SEK 10 M (180)
- The operating result amounted to SEK 1 M (184), including inventory gains and losses of SEK -9 M (4)
- Result after tax amounted to SEK -3 M (148)
- Cash flow from operating activities increased to SEK 226 M (108)
- Earnings per share amounted to SEK -0.22 (11.41)
"In the first quarter, net sales decreased by 16 percent to SEK 1,558 M (1,845) and the underlying operating result was SEK 10 M (180). Inventory losses amounted to SEK -9 M (4) and consequently the operating result amounted to SEK 1 M (184). The result is to be seen in the light of the previous year's hoarding wave and price increase at the end of the first quarter as a consequence of Russia's invasion of Ukraine. Compared with the fourth quarter of the previous year, both net sales and gross margin rose"
Peter Andersson, President and CEO
| Results overview | 2023
Jan-Mar | 2022
Jan-Mar | Change |
| --- | --- | --- | --- |
| Tonnage, thousands of tonnes | 81 | 92 | -11 |
| Net sales, SEK M | 1,558 | 1,845 | -287 |
| Underlying operating result, SEK M | 10 | 180 | -170 |
| Operating result, SEK M | 1 | 184 | -183 |
| Profit/loss for the period, SEK M | -3 | 148 | -151 |
| Earnings per share, SEK | -0.22 | 11.41 | -11.63 |
| Cash flow from operating activities, SEK M | 226 | 108 | 118 |
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 / Interim report January-March 2023
"Release of working capital, primarily by adapting inventory levels, led to a strong cash flow from operating activities"
Statement from the CEO
In the first quarter, net sales decreased by 16 percent to SEK 1,558 M (1,845) and the underlying operating result was SEK 10 M (180). Inventory losses amounted to SEK -9 M (4) and consequently the operating result amounted to SEK 1 M (184). Release of working capital, primarily by adapting inventory levels, led to a strong cash flow from operating activities which amounted to SEK 226 M (108).
The result is to be seen in the light of the previous year's hoarding wave and price increase at the end of the first quarter as a consequence of Russia's invasion of Ukraine. Compared with the fourth quarter of the previous year, both net sales and gross margin rose. The storm, where spot prices rose 100% in the first half of the year and then declined 50% in the second half of 2022, is not probably not completely over, although it has clearly subsided. Business area Finland & Baltics is likely to have bottomed out, while business area Sweden & Poland, given somewhat different customer characteristics, may continue to have a little of a challenge a bit into the second quarter.
The surrounding world
Spot prices for long products fell somewhat in the first quarter but are now expected to increase some. Flat products rose in the first quarter and are expected to rise a bit more into the second quarter. This data is confirmed by analyst firms.
Demand in the future is expected to follow the economic development at large. The manufacturing industry is still going relatively strong while the construction segment has clearly declined. Nonetheless, a lot of steel is used even in bad times. I wrote this before and it still applies.
One of BE Group's strengths is the large spread in the customer base and it is always important to make the most of the situation. This will make things as good as they can be regardless of external factors.
Investment in the future
In the first quarter, the first beams were cut in the fully automated saw and machining line for long products at BE Group's Turku facility. The project is following the budget and schedule and the facility will be fully operational in the second quarter.
In the first quarter, the Board of BE Group also made a decision to upgrade business systems. In the long term, this will entail considerable rationalization and simplified integration with both customers and suppliers and represents a major step in the company's digitalization journey.
Peter Andersson
President and CEO
| Bridge 2022-2023 operating result SEK M | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| Operating result 2022 | 184 | 313 | 40 | -119 |
| Reversal of inventory gains (-)/losses (+) | -4 | -22 | 27 | 69 |
| Underlying operating result 2022 | 180 | 291 | 67 | -50 |
| Change in sales | -50 | - | - | - |
| Change in underlying gross margin | -112 | - | - | - |
| Change in overhead costs | -8 | - | - | - |
| Underlying operating result 2023 | 10 | - | - | - |
| Reversal of inventory gains (+)/losses (-) | -9 | - | - | - |
| Operating result 2023 | 1 | - | - | - |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
Comments on the report
First quarter
The Group's consolidated net sales for the period decreased by 16 percent compared to last year, amounting to SEK 1,558 M (1,845). The decline is explained by decreased organic tonnage growth of -15 percent and price and mix effects of -5 percent, partly compensated by positive currency effects of 4 percent. The latter part of the first quarter of 2022 was strongly impacted by the wave of hoarding caused by Russia's invasion of Ukraine. The current business environment has contributed to decreased demand and declining steel prices with a clear slowdown from the construction sector, while demand from the manufacturing industry and OEM customers remains stable.
Lower demand and falling steel prices pressured gross profit to SEK 159 M (327) which resulted in a gross margin of 10.2 percent (17.7). The operating result amounted to SEK 1 M (184), corresponding to an operating margin of 0.0 percent (10.0). Adjusted for inventory gains and losses of SEK -9 M (4), the underlying operating result amounted to SEK 10 M (180). During the period, the underlying operating margin amounted to 0.6 percent (9.8).
THE GROUP'S SALES GROWTH AND UNDERLYING OPERATING RESULT PER QUARTER
THE GROUP'S GROSS MARGIN AND GROSS PROFIT PER QUARTER
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
BUSINESS AREA
SWEDEN & POLAND
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.
First quarter
Net sales decreased by 6 percent in the first quarter compared to last year and amounted to SEK 790 M (842). The decrease is explained by negative organic tonnage growth of -12 percent partly compensated by positive price and mix effects of 4 percent and acquisitions and divestments of 2 percent. The operating result amounted to SEK 2 M (76). Adjusted for inventory gains and losses of SEK -18 M (8), the underlying operating result amounted to SEK 20 M (69).
The Swedish operations provided a lower underlying operating result compared with the previous year, which is a direct consequence of decreased demand in the construction sector and falling steel prices resulting in a gross margin under continued pressure. The Polish operations provided an operating result in line with the previous year.
Our joint venture AMBE delivered more tonnage but had a lower operating result as a consequence of falling steel prices resulting in inventory losses.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
BUSINESS AREA FINLAND & BALTICS
The business area includes the Group's operations in Finland and the three Baltic countries.
First quarter
Net sales decreased by 23 percent in the first quarter compared to last year amounting to SEK 782 M (1,013). It is explained by negative organic tonnage growth of -17 percent and price and mix effects of -13 percent partly compensated by positive currency effects of 7 percent. The operating result amounted to SEK 3 M (112). Adjusted for inventory gains and losses of SEK 9 M (-3), the underlying operating result amounted to SEK -6 M (116).
The Finnish operations generated a continued negative underlying operating result as a consequence of lower demand and falling steel prices, which resulted in a gross margin under continued pressure.
Similarly, the Baltic operations also had a negative operating result, which is a direct consequence of the current business environment.
BUSINESS AREA FINLAND & BALTICS
SALES GROWTH AND UNDERLYING
OPERATING RESULT PER QUARTER
SEK M
%
250
100
200
80
150
60
100
50
40
0
-50
-100
-0
SEK M
Sales growth, %
G0180C
G0180D
G0180D
G0180D
G0180D
G0180D
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 2022.
The effects regarding IFRS 16 were reported under Parent Company & consolidated items and have not been allocated to the business areas.
Sales for the first quarter of the Parent Company, BE Group AB (publ), amounted to SEK 34 M (30) 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 -19 M (-14), SEK 14 M (10) was allocated to the subsidiaries. The operating result amounted to SEK 15 M (16).
Net financial items for the quarter amounted to SEK 3 M (3). Profit before tax amounted to SEK 18 M (19) and profit after tax amounted to SEK 15 M (15). 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 114 M (112).
Group
Net financial items and tax
The Group's consolidated net financial items in the first quarter amounted to SEK -5 M (-2), 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).
Taxes for the first quarter amounted to SEK 1 M (-34). Profit after tax amounted to SEK -3 M (148).
Cash flow
The Group's consolidated working capital amounted to SEK 931 M (920) at the end of the period and the average working capital tied-up for the first quarter was 16.5 percent (12.0). Cash flow from operating activities amounted to SEK 226 M (108) during the quarter. Cash flow from investing activities amounted to SEK -48 M (-6) and mainly refers to the fully automated saw and machining line in Finland. Cash flow after investments thus amounted to SEK 178 M (102).
Financial position and liquidity
At the end of the period, consolidated cash and cash equivalents, including overdraft facilities, amounted to SEK 289 M (269) and the interest-bearing net debt excl. IFRS 16 was SEK 204 M (159). Equity amounted to SEK 1,643 M (1,568) at the end of the period.
Organization, structure and employees
The number of employees amounted to 683 compared to 663 at the same time last year. The average number of employees during the quarter amounted to 674 (645).
THE GROUP'S CASH FLOW FROM OPERATING ACTIVITIES, SEK M
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
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. Please visit www.begroup.com for more information.
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.
Proposed composition of the Board
The Nominating Committee has proposed re-election of Board members Monika Gutén, Lars Olof Nilsson, Mats O Paulsson, Petter Stillström and Jörgen Zahlin. It is proposed that Jörgen Zahlin be re-elected as Chairman.
Proposal for election of auditors
Based on the recommendation of the Audit Committee, the Nominating Committee proposes re-election of the auditing firm Öhrlings PricewaterhouseCoopers AB as the company's auditor.
Significant risks and uncertainties
Through its operations, BE Group is exposed to global macroeconomic factors, the competitive situation, structural changes in the market and the economy, as well as financial risks such as currency risks, interest risks, credit and counterparty risks. Within the companies of the Group, continuous processes are ongoing to identify existing risks and assess how these should be handled. The risk exposure is explained in the 2022 Annual Report, which was published in March 2023.
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 2022 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 2023 have had no significant effect on the financial reporting.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
Future information
Future reporting dates
BE Group AB (publ) intends to publish financial information on the following dates:
- 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
- The Year-end report 2023 will be published in January, 2024
Financial information is available in Swedish and English from BE Group's website and can be ordered by phone +46 (0) 40 38 42 00 or e-mail: [email protected].
Malmö, April 20, 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. The information was submitted for publication through the agency of the contact persons set out above at 11:00 a.m. CET on April 20, 2023.
8
Condensed consolidated income statement
| (SEK M) | Note | 2023 Jan-Mar | 2022 Jan-Mar | 2022 Full-year | Rolling 12 months |
|---|---|---|---|---|---|
| Net sales | 1,558 | 1,845 | 6,875 | 6,588 | |
| Cost of goods sold | 1 | -1,399 | -1,518 | -5,866 | -5,747 |
| Gross profit | 159 | 327 | 1,009 | 841 | |
| Selling expenses | 1 | -124 | -122 | -482 | -484 |
| Administrative expenses | 1 | -35 | -29 | -134 | -140 |
| Other operating income and expenses | -1 | 0 | -9 | -10 | |
| Participation in joint venture | 2 | 8 | 34 | 28 | |
| Operating profit/loss | 1 | 184 | 418 | 235 | |
| Financial items | -5 | -2 | -18 | -21 | |
| Profit/loss before tax | -4 | 182 | 400 | 214 | |
| Tax | 1 | -34 | -76 | -41 | |
| Profit/loss for the period | -3 | 148 | 324 | 173 | |
| Earnings per share (SEK) | -0.22 | 11.41 | 24.96 | 13.33 | |
| Earnings per share after dilution (SEK) | -0.22 | 11.41 | 24.96 | 13.33 |
Consolidated statement of comprehensive income
| (SEK M) | 2023 Jan-Mar | 2022 Jan-Mar | 2022 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Profit/loss for the period | -3 | 148 | 324 | 173 |
| Other comprehensive income | ||||
| Items that may later be reclassified to profit/loss for the period | ||||
| Translation differences | 9 | 7 | 56 | 58 |
| Total other comprehensive income | 9 | 7 | 56 | 58 |
| Comprehensive income for the period | 6 | 155 | 380 | 231 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
Condensed consolidated balance sheet
| (SEK M) | Note | 2023 | 2022 | 2022 |
|---|---|---|---|---|
| Mar 31 | Mar 31 | Dec 31 | ||
| Goodwill | 587 | 564 | 583 | |
| Other intangible assets | 7 | 10 | 7 | |
| Tangible assets | 182 | 90 | 138 | |
| Right of use assets | 516 | 467 | 494 | |
| Investment in joint venture | 185 | 184 | 183 | |
| Financial assets | 0 | 0 | 0 | |
| Deferred tax assets | 10 | 4 | 6 | |
| Total non-current assets | 1,487 | 1,319 | 1,411 | |
| Inventories | 931 | 1,026 | 1,127 | |
| Accounts receivable | 863 | 1,102 | 675 | |
| Other receivables | 128 | 23 | 78 | |
| Cash and equivalents | 139 | 119 | 50 | |
| Total current assets | 2,061 | 2,270 | 1,930 | |
| Total assets | 2 | 3,548 | 3,589 | 3,341 |
| Equity | 1,643 | 1,568 | 1,637 | |
| Non-current interest-bearing liabilities | 343 | 271 | 406 | |
| Non-current leasing liabilities | 422 | 380 | 405 | |
| Deferred tax liability | 48 | 42 | 48 | |
| Total non-current liabilities | 813 | 693 | 859 | |
| Current interest-bearing liabilities | 0 | 7 | 1 | |
| Current leasing liabilities | 100 | 89 | 94 | |
| Accounts payable | 719 | 893 | 480 | |
| Other current liabilities | 272 | 338 | 269 | |
| Other current provisions | 1 | 1 | 1 | |
| Total current liabilities | 1,092 | 1,328 | 845 | |
| Total equity and liabilities | 2 | 3,548 | 3,589 | 3,341 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
Condensed consolidated cash-flow statement
| (SEK M) | 2023
Jan-Mar | 2022
Jan-Mar | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- |
| Operating result | 1 | 184 | 418 | 235 |
| Adjustment for non-cash items | -15 | 15 | 173 | 143 |
| – of which, amortization/depreciation | 29 | 27 | 115 | 117 |
| – of which, other items | -44 | -12 | 58 | 26 |
| Interest received | 2 | 1 | 6 | 7 |
| Interest paid | -8 | -4 | -23 | -27 |
| Income tax paid | -39 | -2 | -53 | -90 |
| Change in working capital | 285 | -86 | -317 | 54 |
| Cash flow from operating activities | 226 | 108 | 204 | 322 |
| Acquisitions/divestments of subsidiaries | – | – | -7 | -7 |
| Changes in intangible assets | 0 | 0 | -1 | -1 |
| Changes in tangible assets | -48 | -6 | -48 | -90 |
| Other cash flow from investing activities | 0 | 0 | 0 | 0 |
| Cash flow after investments | 178 | 102 | 148 | 224 |
| Cash flow from financing activities 1) | -89 | -38 | -155 | -206 |
| Cash flow for the period | 89 | 64 | -7 | 18 |
| Translation differences in cash and equivalents | 0 | 1 | 3 | 2 |
| Change in cash and equivalents | 89 | 65 | -4 | 20 |
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) | 2023
Jan-Mar | 2022
Jan-Mar | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- |
| Equity at beginning of period | 1,637 | 1,413 | 1,413 | 1,568 |
| Comprehensive income for the period | 6 | 155 | 380 | 231 |
| Dividend | – | – | -156 | -156 |
| Equity at end of period | 1,643 | 1,568 | 1,637 | 1,643 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
Note 1 Amortizations and depreciations
| (SEK M) | 2023
Jan-Mar | 2022
Jan-Mar | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- |
| Amortization of intangible assets | 1 | 1 | 4 | 4 |
| Depreciation of tangible assets | 5 | 6 | 21 | 20 |
| Depreciation of right of use assets | 23 | 20 | 90 | 93 |
| Total amortizations and depreciations | 29 | 27 | 115 | 117 |
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 / Interim report January-March 2023
Segment reporting
Net sales by business area
| (SEK M) | 2023 Jan-Mar | 2022 Jan-Mar | 2022 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 790 | 842 | 3,408 | 3,356 |
| Finland & Baltics | 782 | 1,013 | 3,497 | 3,266 |
| Parent Company & consolidated items | -14 | -10 | -30 | -34 |
| Group | 1,558 | 1,845 | 6,875 | 6,588 |
Net sales by business area and product group
| 2023 | Sweden & Poland | Finland & Baltics | Parent company & consolidated items | Total | |
|---|---|---|---|---|---|
| (SEK M) | 2023 Jan-Mar | 2023 Jan-Mar | 2023 Jan-Mar | 2023 Jan-Mar | Rolling 12 months |
| Long steel products | 365 | 220 | 0 | 585 | 2,715 |
| Flat steel products | 294 | 391 | 0 | 685 | 2,727 |
| Stainless steel | 98 | 123 | 0 | 221 | 845 |
| Aluminium | 22 | 33 | 0 | 55 | 226 |
| Other | 11 | 15 | -14 | 12 | 75 |
| Total | 790 | 782 | -14 | 1,558 | 6,588 |
| 2022 | Sweden & Poland | Finland & Baltics | Parent company & consolidated items | Total | |
| --- | --- | --- | --- | --- | --- |
| (SEK M) | 2022 Jan-Mar | 2022 Jan-Mar | 2022 Jan-Mar | 2022 Jan-Mar | 2022 Full-year |
| Long steel products | 396 | 299 | 0 | 695 | 2,825 |
| Flat steel products | 258 | 503 | 0 | 761 | 2,803 |
| Stainless steel | 121 | 148 | 0 | 269 | 893 |
| Aluminium | 35 | 50 | 0 | 85 | 256 |
| Other | 32 | 13 | -10 | 35 | 98 |
| Total | 842 | 1,013 | -10 | 1,845 | 6,875 |
Net sales by country based on customer's domicile
| (SEK M) | 2023 Jan-Mar | 2022 Jan-Mar | 2022 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden | 739 | 732 | 3,261 | 3,268 |
| Finland | 697 | 894 | 3,162 | 2,965 |
| Other | 122 | 219 | 452 | 355 |
| Group | 1,558 | 1,845 | 6,875 | 6,588 |
Shipped tonnage per segment
| (Thousands of thonnes) | 2023 Jan-Mar | 2022 Jan-Mar | 2022 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 40 | 41 | 157 | 156 |
| Finland & Baltics | 43 | 51 | 164 | 156 |
| Parent Company & consolidated items | -2 | 0 | -1 | -3 |
| Group | 81 | 92 | 320 | 309 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
Operating result (EBIT) per segment
| (SEK M) | 2023 Jan-Mar | 2022 Jan-Mar | 2022 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 2 | 76 | 217 | 143 |
| Finland & Baltics | 3 | 112 | 217 | 108 |
| Parent Company & consolidated items | -4 | -4 | -16 | -16 |
| Group | 1 | 184 | 418 | 235 |
Operating margin per segment
| (SEK M) | 2023 Jan-Mar | 2022 Jan-Mar | 2022 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 0.3% | 9.1% | 6.4% | 4.3% |
| Finland & Baltics | 0.3% | 11.1% | 6.2% | 3.3% |
| Parent Company & consolidated items | neg | neg | neg | neg |
| Group | 0.0% | 10.0% | 6.1% | 3.6% |
Underlying operating result (uEBIT) per segment 1)
| (SEK M) | 2023 Jan-Mar | 2022 Jan-Mar | 2022 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 20 | 69 | 236 | 187 |
| Finland & Baltics | -6 | 116 | 267 | 145 |
| Parent Company & consolidated items | -4 | -5 | -15 | -14 |
| Group | 10 | 180 | 488 | 318 |
Underlying operating margin per segment 2)
| (SEK M) | 2023 Jan-Mar | 2022 Jan-Mar | 2022 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 2.5% | 8.2% | 6.9% | 5.6% |
| Finland & Baltics | -0.8% | 11.4% | 7.6% | 4.4% |
| Parent Company & consolidated items | neg | neg | neg | neg |
| Group | 0.6% | 9.8% | 7.1% | 4.8% |
Depreciation per segment
| (SEK M) | 2023 Jan-Mar | 2022 Jan-Mar | 2022 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 3 | 3 | 12 | 12 |
| Finland & Baltics | 3 | 3 | 11 | 11 |
| Parent Company & consolidated items | 23 | 21 | 92 | 94 |
| Group | 29 | 27 | 115 | 117 |
Investments in tangible and intangible assets per segment
| (SEK M) | 2023 Jan-Mar | 2022 Jan-Mar | 2022 Full-year | Rolling 12 months |
|---|---|---|---|---|
| Sweden & Poland | 4 | 2 | 6 | 8 |
| Finland & Baltics | 44 | 4 | 47 | 87 |
| Parent Company & consolidated items | 0 | 0 | 0 | 0 |
| Group | 48 | 6 | 53 | 95 |
1) Operating profit/loss (EBIT) adjusted for inventory gains and losses and items affecting comparability. Inventory gains and losses are the differences between the cost of goods sold at acquisition value and the cost of goods sold at replacement cost. The Group's internal model is used to calculate inventory gains and losses and has not been subject for review by the Group's auditor.
2) Underlying operating result (uEBIT) as a percentage of net sales.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
Key data
| (SEK M unless otherwise stated) | 2023 | 2022 | 2022 | Rolling |
|---|---|---|---|---|
| Jan-Mar | Jan-Mar | Full-year | 12 months | |
| Net sales | 1,558 | 1,845 | 6,875 | 6,588 |
| Earnings measurements | ||||
| Gross result | 159 | 327 | 1,009 | 841 |
| Underlying gross result | 160 | 322 | 1,075 | 913 |
| Operating result (EBIT) | 1 | 184 | 418 | 235 |
| Underlying operating result (uEBIT) | 10 | 180 | 488 | 318 |
| Margin measurements | ||||
| Gross margin | 10.2% | 17.7% | 14.7% | 12.8% |
| Underlying gross margin | 10.3% | 17.5% | 15.6% | 13.9% |
| Operating margin | 0.0% | 10.0% | 6.1% | 3.6% |
| Underlying operating margin | 0.6% | 9.8% | 7.1% | 4.8% |
| Capital structure | ||||
| Net debt excl. IFRS 16 1) | 204 | 159 | 357 | 204 |
| Net debt/equity ratio excl. IFRS 16 1) | 12.4% | 10.1% | 21.7% | 12.4% |
| Working capital at end of period | 931 | 920 | 1,130 | 931 |
| Working capital (average) | 1,031 | 889 | 1,064 | 1,078 |
| Capital employed (average) excl. IFRS 16 1) | 2,023 | 1,785 | 2,003 | 2,059 |
| Working capital tied-up | 16.5% | 12.0% | 15.5% | 16.4% |
| Return | ||||
| Return on capital employed excl. IFRS 16 1) | -0.4% | 40.9% | 20.3% | 10.8% |
| Per share data | ||||
| Earnings per share (SEK) | -0.22 | 11.41 | 24.96 | 13.33 |
| Earnings per share after dilution (SEK) | -0.22 | 11.41 | 24.96 | 13.33 |
| Equity per share (SEK) | 126.57 | 120.80 | 126.11 | 126.57 |
| Cash flow from operating activities per share (SEK) | 17.37 | 8.35 | 15.72 | 24.74 |
| 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 | -16% | 68% | 28% | 7% |
| - of which organic tonnage growth | -15% | 4% | -9% | -14% |
| - of which price and mix changes | -5% | 62% | 32% | 17% |
| - of which currency effects | 4% | 2% | 2% | 3% |
| - of which acquisitions | 1% | - | 3% | 2% |
| - of which divestments | -1% | - | 0% | -1% |
| Other | ||||
| Average number of employees | 674 | 645 | 654 | 665 |
| Inventory gains and losses | -9 | 4 | -70 | -83 |
| Shipped tonnage (thousands of tonnes) | 81 | 92 | 320 | 309 |
1) To visualize the development of BE Group's financial position, some information is in the key figure overview that is not defined in IFRS. A reconciliation/bridge between alternative performance measures used in this report and the closest IFRS measure is presented under Alternative performance measures.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
Condensed parent company income statement
| (SEK M) | 2023
Jan-Mar | 2022
Jan-Mar | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- |
| Net sales | 34 | 30 | 148 | 152 |
| Administrative expenses | -19 | -14 | -68 | -73 |
| Other operating income and expenses | 0 | 0 | 1 | 1 |
| Operating profit/loss | 15 | 16 | 81 | 80 |
| Financial items | 3 | 3 | 266 | 266 |
| Profit/loss after financial items | 18 | 19 | 347 | 346 |
| Appropriations | - | - | 39 | 39 |
| Profit/loss before tax | 18 | 19 | 386 | 385 |
| Tax | -3 | -4 | -26 | -25 |
| Profit/loss for the period, or comprehensive income for the period | 15 | 15 | 360 | 360 |
Condensed parent company balance sheet
| (SEK M) | 2023
Mar 31 | 2022
Mar 31 | 2022
Dec 31 |
| --- | --- | --- | --- |
| Intangible assets | 3 | 4 | 3 |
| Tangible assets | 0 | 0 | 0 |
| Financial assets | 873 | 881 | 873 |
| Total non-current assets | 876 | 885 | 876 |
| Current receivables | 243 | 134 | 377 |
| Cash and equivalents | 114 | 112 | 31 |
| Total current assets | 357 | 246 | 408 |
| Total assets | 1,233 | 1,131 | 1,284 |
| Equity | 1,178 | 974 | 1,163 |
| Non-current liabilities | 0 | 103 | 39 |
| Current liabilities | 55 | 54 | 82 |
| Total equity and liabilities | 1,233 | 1,131 | 1,284 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
Key data – multi-quarter summary
| (SEK M unless otherwise stated) | 2023 Jan-Mar | 2022 Oct-Dec | 2022 Jul-Sep | 2022 Apr-Jun | 2022 Jan-Mar | 2021 Oct-Dec | 2021 Jul-Sep | 2021 Apr-Jun | 2021 Jan-Mar |
|---|---|---|---|---|---|---|---|---|---|
| Net sales | 1,558 | 1,472 | 1,514 | 2,044 | 1,845 | 1,510 | 1,375 | 1,403 | 1,100 |
| Earnings measurements | |||||||||
| Gross result | 159 | 51 | 173 | 458 | 327 | 283 | 316 | 296 | 207 |
| Underlying gross result | 160 | 110 | 197 | 446 | 322 | 269 | 301 | 275 | 193 |
| Operating result (EBIT) | 1 | -119 | 40 | 313 | 184 | 158 | 219 | 158 | 86 |
| Underlying operating result (uEBIT) | 10 | -50 | 67 | 291 | 180 | 135 | 193 | 133 | 68 |
| Margin measurements | |||||||||
| Gross margin | 10.2% | 3.4% | 11.5% | 22.4% | 17.7% | 18.7% | 23.0% | 21.1% | 18.9% |
| Underlying gross margin | 10.3% | 7.4% | 13.0% | 21.8% | 17.5% | 17.8% | 21.9% | 19.6% | 17.5% |
| Operating margin | 0.0% | -8.1% | 2.6% | 15.3% | 10.0% | 10.4% | 15.9% | 11.3% | 7.8% |
| Underlying operating margin | 0.6% | -3.4% | 4.4% | 14.2% | 9.8% | 9.0% | 14.0% | 9.5% | 6.1% |
| Capital structure | |||||||||
| Net debt excl. IFRS 16 1) | 204 | 357 | 475 | 237 | 159 | 241 | 98 | 75 | 124 |
| Net debt/equity ratio excl. IFRS 16 1) | 12.4% | 21.7% | 27.4% | 14.0% | 10.1% | 17.0% | 7.6% | 6.7% | 12.6% |
| Working capital at end of period | 931 | 1,130 | 1,340 | 1,070 | 920 | 856 | 610 | 434 | 376 |
| Working capital (average) | 1,031 | 1,234 | 1,204 | 996 | 889 | 734 | 523 | 405 | 360 |
| Capital employed (average) excl. IFRS 16 1) | 2,023 | 2,173 | 2,197 | 1,977 | 1,785 | 1,639 | 1,467 | 1,387 | 1,318 |
| Working capital tied-up | 16.5% | 21.0% | 19.9% | 12.2% | 12.0% | 12.1% | 9.5% | 7.2% | 8.2% |
| Return | |||||||||
| Return on capital employed excl. IFRS 16 1) | -0.4% | -22.3% | 6.8% | 62.6% | 40.9% | 38.3% | 59.1% | 44.9% | 25.1% |
| Per share data | |||||||||
| Earnings per share (SEK) | -0.22 | -7.79 | 2.05 | 19.30 | 11.41 | 10.00 | 13.49 | 9.74 | 4.88 |
| Earnings per share after dilution (SEK) | -0.22 | -7.79 | 2.05 | 19.30 | 11.41 | 10.00 | 13.49 | 9.74 | 4.88 |
| Equity per share (SEK) | 126.57 | 126.11 | 133.30 | 130.04 | 120.80 | 108.84 | 98.68 | 84.82 | 75.55 |
| Cash flow from operating activities per share (SEK) | 17.37 | 11.75 | -14.14 | 9.79 | 8.35 | -8.87 | 0.50 | 6.24 | 4.62 |
| 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 | -16% | -3% | 10% | 46% | 68% | 73% | 85% | 50% | -2% |
| - of which organic tonnage growth | -15% | -14% | -15% | -14% | 4% | 4% | 21% | 28% | -3% |
| - of which price and mix changes | -5% | 5% | 19% | 54% | 62% | 70% | 65% | 25% | 4% |
| - of which currency effects | 4% | 5% | 3% | 2% | 2% | -1% | -1% | -3% | -3% |
| - of which acquisitions | 1% | 3% | 4% | 4% | - | - | - | - | - |
| - of which divestments | -1% | -2% | -1% | - | - | - | - | - | - |
| Other | |||||||||
| Average number of employees | 674 | 656 | 656 | 665 | 645 | 627 | 625 | 616 | 613 |
| Inventory gains and losses | -9 | -69 | -27 | 22 | 4 | 23 | 26 | 25 | 18 |
| Shipped tonnage (thousands of tonnes) | 81 | 72 | 68 | 88 | 92 | 79 | 77 | 98 | 88 |
1) To visualize the development of BE Group's financial position, some information is in the key figure overview that is not defined in IFRS. A reconciliation/bridge between alternative performance measures used in this report and the closest IFRS measure is presented under Alternative performance measures.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
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) | 2023
Jan-Mar | 2022
Jan-Mar | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- |
| Operating result | 1 | 184 | 418 | 235 |
| Reversal of inventory gains (-)/losses (+) | 9 | -4 | 70 | 83 |
| Adjustment for items affecting comparability | - | - | - | - |
| Group | 10 | 180 | 488 | 318 |
Working capital
| (SEK M) | 2023
Mar 31 | 2022
Mar 31 | 2022
Dec 31 |
| --- | --- | --- | --- |
| Inventories | 931 | 1,026 | 1,127 |
| Accounts receivable | 863 | 1,102 | 675 |
| Other receivables | 128 | 23 | 78 |
| Deduction accounts payable | -719 | -893 | -480 |
| Deduction other current liabilities | -272 | -338 | -269 |
| Rounding | - | - | -1 |
| Group | 931 | 920 | 1,130 |
Average working capital is an average for each period based on quarterly data.
Net debt excl. IFRS 16
| (SEK M) | 2023
Mar 31 | 2022
Mar 31 | 2022
Dec 31 |
| --- | --- | --- | --- |
| Non-current interest-bearing liabilities and leasing liabilities | 765 | 651 | 811 |
| Current interest-bearing liabilities and leasing liabilities | 100 | 96 | 95 |
| Deduction leasing liabilities | -522 | -469 | -499 |
| Deduction financial assets | 0 | 0 | 0 |
| Deduction cash and equivalents | -139 | -119 | -50 |
| Rounding | - | - | - |
| Group | 204 | 159 | 357 |
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) | 2023
Mar 31 | 2022
Mar 31 | 2022
Dec 31 |
| --- | --- | --- | --- |
| Equity excl. IFRS 16 | 1,650 | 1,576 | 1,645 |
| Non-current interest-bearing liabilities and leasing liabilities | 765 | 651 | 811 |
| Current interest-bearing liabilities and leasing liabilities | 100 | 96 | 95 |
| Deduction leasing liabilities | -522 | -469 | -499 |
| Rounding | - | - | - |
| Group | 1,993 | 1,854 | 2,052 |
Average capital employed excl. IFRS 16 is an average for each period based on quarterly data.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
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 2022 annual report for other definitions of key data.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-March 2023
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 / Interim report January-March 2023