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BE Group AB Interim / Quarterly Report 2023
3140_10-q_2023-10-18_0930ec82-15fe-428c-b981-9b4606cb073a.pdf
Interim / Quarterly Report
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Third quarter 2023
- Net sales decreased by 22% to SEK 1,187 M (1,514)
- The underlying operating result amounted to SEK 4 M (67)
- The operating result amounted to SEK -42 M (40), including inventory losses of SEK -40 M (-27) and items affecting comparability of SEK -6 M (-) due to restructuring
- Result after tax amounted to SEK -42 M (26)
- Cash flow from operating activities amounted to SEK -17 M (-183)
- Earnings per share amounted to SEK -3.27 (2.05)
First nine months 2023
- Net sales decreased by 23% to SEK 4,151 M (5,403)
- The underlying operating result amounted to SEK 47 M (538)
- The operating result amounted to SEK -15 M (537), including inventory losses of SEK -56 M (-1) and items affecting comparability of SEK -6 M (-)
- Result after tax amounted to SEK -26 M (425)
- Cash flow from operating activities increased to SEK 341 M (52)
- Earnings per share amounted to SEK -2.02 (32.76)
- A new credit agreement was signed with a credit facility of SEK 775 M
- Second part of the decided dividend, SEK 6 per share, is estimated to be paid on October 27
"The reason for the weak result is a continuous drop in prices and tonnage, which pressures the gross margin. The decline in tonnage originates exclusively from the Swedish part of the operations, which is mainly attributable to greater exposure to the construction sector"
Peter Andersson, President and CEO
| Results overview | 2023
Jul-Sep | 2022
Jul-Sep | Change | 2023
Jan-Sep | 2022
Jan-Sep | Change |
| --- | --- | --- | --- | --- | --- | --- |
| Tonnage, thousands of tonnes | 64 | 68 | -4 | 218 | 248 | -30 |
| Net sales, SEK M | 1,187 | 1,514 | -327 | 4,151 | 5,403 | -1,252 |
| Underlying operating result, SEK M | 4 | 67 | -63 | 47 | 538 | -491 |
| Operating result, SEK M | -42 | 40 | -82 | -15 | 537 | -552 |
| Profit/loss for the period, SEK M | -42 | 26 | -68 | -26 | 425 | -451 |
| Earnings per share, SEK | -3.27 | 2.05 | -5.32 | -2.02 | 32.76 | -34.78 |
| Cash flow from operating activities, SEK M | -17 | -183 | 166 | 341 | 52 | 289 |
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-September 2023
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2023
"A lot of steel is needed even in worse times and now it is important to secure as many deals as possible at healthy margins"
Statement from the CEO
Market conditions remained difficult, particularly in the construction sector, causing net sales in the third quarter to decline by 22% to SEK 1,187 M (1,514). Combined with pressured gross margins, the underlying operating result decreased to SEK 4 M (67). Inventory losses amounted to SEK -40 M and, in addition, non-recurring costs of SEK -6 M were charged to earnings, meaning that the operating result amounted to SEK -42 M (40). Cash flow from operating activities amounted to SEK -17 M (-183) and net debt was at SEK 251 M (475). For the first nine months, cash flow amounted to SEK 341 M and over the past 12 months, it amounted to SEK 493 M.
Non-recurring costs relates to efficiency enhancement of the organization. Combined with cost rationalizations, this is expected to generate an annual savings effect of more than SEK 40 M. To enhance efficiency and reduce the distance between company management and its customers, I have during the quarter also assumed the role as MD for the Swedish operations.
The reason for the weak result is a continuous drop in prices and tonnage, which pressures the gross margin. The decline in tonnage originates exclusively from the Swedish part of the operations, which is mainly attributable to greater exposure to the construction sector.
Quarter. In general, few or no negative signals are coming from the industrial sector, while the construction sector is expected to continue at low levels of activity.
Spot prices have fallen into Q4 and, according to analyst firms, are expected to bottom out in November and then increase slightly into 2024. A lower price level does not reasonably work for steel producers and they are likely to further reduce their capacity if they do not get at least the current levels.
Our focus
When the market situation is tough, it is important to keep your head cool. A lot of steel is needed even in worse times and now it is important to secure as many deals as possible at healthy margins. This, together with the ongoing adaptation of the organization and costs, will in the long term result in a stronger BE Group. Our ambition for the company is to be profitable regardless of economic trends and external factors.
Peter Andersson
President and CEO
Outlook
Demand in the fourth quarter is expected to be in line with the third
| Bridge 2022-2023 operating result SEK M | Q1 | Q2 | Q3 | Q4 | Jan-Sep |
|---|---|---|---|---|---|
| Operating result 2022 | 184 | 313 | 40 | -119 | 537 |
| Reversal of inventory gains (-)/losses (+) | -4 | -22 | 27 | 69 | 1 |
| Underlying operating result 2022 | 180 | 291 | 67 | -50 | 538 |
| Change in sales | -50 | -139 | -43 | - | -232 |
| Change in underlying gross margin | -112 | -126 | -20 | - | -258 |
| Change in overhead costs | -8 | 7 | 0 | - | -1 |
| Underlying operating result 2023 | 10 | 33 | 4 | - | 47 |
| Reversal of inventory gains (+)/losses (-) | -9 | -7 | -40 | - | -56 |
| Items affecting comparability | - | - | -6 | - | -6 |
| Operating result 2023 | 1 | 26 | -42 | - | -15 |
Comments on the report
Third quarter
The Group's consolidated net sales for the period decreased by -22 percent compared to last year and amounted to SEK 1,187 M (1,514). The decline is mainly attributable to falling steel prices and weak demand, particularly in the construction sector within Swedish operations and sales of long products, while demand from the manufacturing sector and OEM customers remains steady.
Falling steel prices and mix effects had a negative impact on net sales of -21 percent. The tonnage decreased by -6 percent, of which business area Sweden & Poland saw a decrease of -17 percent while Finland & Baltics rose by 5 percent. Currency effects were positive at 5 percent.
A downward price trend and lower demand contributed to a decrease in gross profit to SEK 99 M (173) which resulted in a gross margin of 8.3 percent (11.5). The operating result amounted to SEK -42 M (40), corresponding to an operating margin of -3.5 percent (2.6). Adjusted for inventory losses of SEK -40 M (-27) and items affecting comparability of SEK -6 M (-), the underlying operating result amounted to SEK 4 M (67). During the period, the underlying operating margin amounted to 0.3 percent (4.4).
First nine months
During the first nine months, the Group's net sales decreased by -23 percent compared to last year and amounted to SEK 4,151 M (5,403). This is explained by a negative organic tonnage growth of -14 percent, price and mix effects of -13 percent, partly compensated by positive currency effects of 5 percent. The organic tonnage growth in business area Sweden & Poland decreased by -17 percent and Finland & Baltics delivered -10 percent less. Sales of mainly long and flat products declined compared with the previous year. Gross profit amounted to SEK 430 M (958) with a gross margin of 10.4 percent (17.7).
The operating result amounted to SEK -15 M (537), corresponding to an operating margin of -0.4 percent (9.9). Adjusted for inventory losses of SEK -56 M (-1) and items affecting comparability of SEK -6 M (-), the underlying operating result amounted to SEK 47 M (538). During the period, the underlying operating margin amounted to 1.1 percent (10.0).
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 2023
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.
Third quarter
Net sales decreased by -28 percent in the third quarter compared to last year and amounted to SEK 540 M (757). The decreased sales is explained by organic tonnage growth of -17 percent and price and mix effects of -12 percent. Sales of long products mainly decreased compared to last year. The operating result amounted to SEK -20 M (26). Adjusted for inventory losses of SEK -19 M (-15) and items affecting comparability of SEK -4 M (-), the underlying operating result amounted to SEK 3 M (41).
The Swedish operations provided a weak underlying operating result compared to last year as a result of reduced demand in the construction sector and declining steel prices which continued to pressure the gross margin. Our joint venture AMBE continued to provide a strong operating result as a consequence of high volumes and a strong gross margin.
In the Polish operations, the volume rose but the result was negative as a consequence of lower steel prices and a low gross margin.
First nine months
Net sales for the first nine months decreased by -23 percent compared to last year, amounting to SEK 2,020 M (2,631). The decline is explained by negative organic tonnage growth of -18 percent and price and mix effects of -5 percent. The decrease in tonnage is mainly explained by lower demand in the construction sector mainly affecting long products. Operating result amounted to SEK -7 M (232). Adjusted for inventory gains and losses of SEK -46 M (9) and items affecting comparability of SEK -4 M (-), the underlying operating result amounted to SEK 43 M (223).
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2023
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2023
BUSINESS AREA FINLAND & BALTICS
The business area includes the Group's operations in Finland and the three Baltic countries.
Third quarter
Net sales decreased by -14 percent compared to the third quarter last year and amounted to SEK 656 M (766). The decline is explained by negative price and mix effects of -30 percent partly compensated by positive currency effects of 11 percent and organic tonnage growth of 5 percent. Mainly, sales of long and flat products decreased compared to last year. The operating result amounted to SEK -20 M (16). Adjusted for inventory losses of SEK -21 M (-13) and items affecting comparability of SEK -2 M (-), the underlying operating result amounted to SEK 3 M (29).
The Finnish operations generated a weak underlying operating result compared to last year as a result of lower steel prices and a pressured gross margin while volumes were unchanged.
Volumes increased in the Baltic operations but the result was negative as a result of declining steel prices and a low gross margin.
First nine months
Net sales for the first nine months decreased by -22 percent compared to last year, amounting to SEK 2,165 M (2,794). The decline is explained by negative price and mix effects of -21 percent and organic tonnage growth of -10 percent partly compensated by positive currency effects of 9 percent. Mainly, sales of long and flat products decreased compared to last year. The operating result amounted to SEK -1 M (315) and adjusted for inventory losses of SEK -10 M (-11) and items affecting comparability of SEK -2 M (-), the underlying operating result amounted to SEK 9 M (326).
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 two business areas.
Sales for the third quarter of the Parent Company, BE Group AB (publ), amounted to SEK 35 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 -16 M (-14), SEK 14 M (10) was allocated to the subsidiaries. The operating result amounted to SEK 19 M (16). For the first nine months, net sales amounted to SEK 104 M (90) and the operating result to SEK 51 M (47).
Net financial items for the quarter amounted to SEK 44 M (7). Profit before tax amounted to SEK 63 M (23) and profit after tax amounted to SEK 59 M (19). Investments in the Parent Company amounted to SEK 0 M (0) for the quarter. At the end of the period, cash and equivalents in the Parent Company amounted to SEK 4 M (72).
Net financial items for the first nine months amounted to SEK 93 M (263). Profit before tax amounted to SEK 144 M (310) and profit after tax was SEK 132 M (299). Investments in the Parent Company amounted to SEK 0 M (0).
Group
Net financial items and tax
The Group's consolidated net financial items in the third quarter amounted to SEK -9 M (-6), of which net interest amounted to SEK -7 M (-5). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -3 M (-3). Net financial items for the first nine months amounted to SEK -18 M (-13) and net interest to SEK -20 M (-12), of which SEK -8 M (-7) relates to leasing according to IFRS 16.
Taxes for the third quarter amounted to SEK 9 M (-8) and was SEK 7 M (-99) for the first nine months. Profit after tax amounted to SEK -42 M (26) and was SEK -26 M (425) for the first nine months.
Cash flow
The Group's consolidated working capital amounted to SEK 777 M (1,340) at the end of the period and the average working capital tied-up for the third quarter was 16.5 percent (19.9). The lower working capital is mainly attributable to decreased inventory value, which amounted to SEK 881 M (1,418) at the end of the period and decreased accounts receivable which amounted to SEK 710 M (934). The decrease in inventory value is due to lower average prices and adjustment of inventory levels as a consequence of lower demand. Cash flow from operating activities amounted to SEK -17 M (-183) during the quarter and to SEK 341 M (52) for the first nine months.
Cash flow from investing activities amounted to SEK -10 M (-21) for the third quarter and to SEK -82 M (-50) for the first nine months. Cash flow after investments thus amounted to SEK -27 M (-204) during the third quarter and increased to SEK 259 M (2) 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 164 M (230) and the interest-bearing net debt excl. IFRS 16 was SEK 251 M (475). Equity amounted to SEK 1,477 M (1,731) at the end of the period.
Organization, structure and employees
The number of employees amounted to 689 compared to 646 at the same time last year. The average number of employees during the quarter amounted to 692 (656).
THE GROUP'S CASH FLOW FROM OPERATING ACTIVITIES, SEK M
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 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.
Dividend
In accordance with the decision taken at BE Group's Annual General Meeting 2023, the second part of the dividend for 2022 of SEK 6 per share is estimated to be paid on October 27, 2023.
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 2024
BE Group's Annual General Meeting will take place on April 18, 2024, 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 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-September 2023
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2023
Future information
Future reporting dates
BE Group AB (publ) intends to publish financial information on the following dates:
- The Year-end report 2023 will be published on January 25, 2024
- The Annual Report 2023 will be available at the end of March 2024
- The Interim Report for January-March 2024 will be published on April 18, 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, October 18, 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 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. CEST on October 18, 2023.
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 2023 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 18, 2023
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 2023
Condensed consolidated income statement
| (SEK M) | Note | 2023 Jul-Sep | 2022 Jul-Sep | 2023 Jan-Sep | 2022 Jan-Sep | 2022 Full-year | Rolling 12 months |
|---|---|---|---|---|---|---|---|
| Net sales | 1,187 | 1,514 | 4,151 | 5,403 | 6,875 | 5,623 | |
| Cost of goods sold | 1 | -1,088 | -1,341 | -3,721 | -4,445 | -5,866 | -5,142 |
| Gross profit | 99 | 173 | 430 | 958 | 1,009 | 481 | |
| Selling expenses | 1 | -107 | -107 | -356 | -359 | -482 | -479 |
| Administrative expenses | 1 | -30 | -28 | -102 | -90 | -134 | -146 |
| Other operating income and expenses | 2 | -11 | -1 | -7 | -8 | -9 | -8 |
| Participation in joint venture | 7 | 3 | 20 | 36 | 34 | 18 | |
| Operating profit/loss | -42 | 40 | -15 | 537 | 418 | -134 | |
| Financial items | -9 | -6 | -18 | -13 | -18 | -23 | |
| Profit/loss before tax | -51 | 34 | -33 | 524 | 400 | -157 | |
| Tax | 9 | -8 | 7 | -99 | -76 | 30 | |
| Profit/loss for the period | -42 | 26 | -26 | 425 | 324 | -127 | |
| Earnings per share (SEK) | -3.27 | 2.05 | -2.02 | 32.76 | 24.96 | -9.81 | |
| Earnings per share after dilution (SEK) | -3.27 | 2.05 | -2.02 | 32.76 | 24.96 | -9.81 |
Consolidated statement of comprehensive income
| (SEK M) | 2023 Jul-Sep | 2022 Jul-Sep | 2023 Jan-Sep | 2022 Jan-Sep | 2022 Full-year | Rolling 12 months |
|---|---|---|---|---|---|---|
| Profit/loss for the period | -42 | 26 | -26 | 425 | 324 | -127 |
| Other comprehensive income | ||||||
| Items that may later be reclassified to profit/loss for the period | ||||||
| Translation differences | -17 | 17 | 22 | 49 | 56 | 29 |
| Total other comprehensive income | -17 | 17 | 22 | 49 | 56 | 29 |
| Comprehensive income for the period | -59 | 43 | -4 | 474 | 380 | -98 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2023
Condensed consolidated balance sheet
| (SEK M) | Note | 2023 | 2022 | 2022 |
|---|---|---|---|---|
| Sep 30 | Sep 30 | Dec 31 | ||
| Goodwill | 592 | 578 | 583 | |
| Other intangible assets | 5 | 8 | 7 | |
| Tangible assets | 205 | 130 | 138 | |
| Right of use assets | 489 | 512 | 494 | |
| Investment in joint venture | 188 | 198 | 183 | |
| Financial assets | 0 | 0 | 0 | |
| Deferred tax assets | 21 | 4 | 6 | |
| Total non-current assets | 1,500 | 1,430 | 1,411 | |
| Inventories | 881 | 1,418 | 1,127 | |
| Accounts receivable | 710 | 934 | 675 | |
| Other receivables | 149 | 23 | 78 | |
| Cash and equivalents | 14 | 80 | 50 | |
| Total current assets | 1,754 | 2,455 | 1,930 | |
| Total assets | 3 | 3,254 | 3,885 | 3,341 |
| Equity | 1,477 | 1,731 | 1,637 | |
| Non-current interest-bearing liabilities | 264 | 553 | 406 | |
| Non-current leasing liabilities | 391 | 417 | 405 | |
| Deferred tax liability | 49 | 47 | 48 | |
| Total non-current liabilities | 704 | 1,017 | 859 | |
| Current interest-bearing liabilities | 0 | 3 | 1 | |
| Current leasing liabilities | 104 | 98 | 94 | |
| Accounts payable | 627 | 692 | 480 | |
| Other current liabilities | 336 | 343 | 269 | |
| Other current provisions | 6 | 1 | 1 | |
| Total current liabilities | 1,073 | 1,137 | 845 | |
| Total equity and liabilities | 3 | 3,254 | 3,885 | 3,341 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2023
Condensed consolidated cash-flow statement
| (SEK M) | 2023
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Operating result | -42 | 40 | -15 | 537 | 418 | -134 |
| Adjustment for non-cash items | 46 | 53 | -59 | 88 | 173 | 144 |
| – of which, amortization/depreciation | 30 | 28 | 91 | 84 | 115 | 122 |
| – of which, other items | 16 | 25 | -32 | 4 | 58 | 22 |
| Interest received | 2 | 2 | 5 | 4 | 6 | 7 |
| Interest paid | -9 | -6 | -25 | -15 | -23 | -33 |
| Income tax paid | 9 | -21 | -36 | -32 | -53 | -57 |
| Change in working capital 1) | -23 | -251 | 353 | -530 | -317 | 566 |
| Cash flow from operating activities | -17 | -183 | 341 | 52 | 204 | 493 |
| Acquisitions/divestments of subsidiaries | 0 | 2 | 0 | -7 | -7 | 0 |
| Changes in intangible assets | 0 | -1 | 0 | -1 | -1 | 0 |
| Changes in tangible assets | -10 | -22 | -82 | -42 | -48 | -88 |
| Other cash flow from investing activities | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash flow after investments | -27 | -204 | 259 | 2 | 148 | 405 |
| Cash flow from financing activities 1) | -147 | 116 | -296 | 22 | -155 | -473 |
| Cash flow for the period | -174 | -88 | -37 | 24 | -7 | -68 |
| Translation differences in cash and equivalents | 0 | 0 | 1 | 2 | 3 | 2 |
| Change in cash and equivalents | -174 | -88 | -36 | 26 | -4 | -66 |
1) The cash flow for January – September 2023 contains the total decided dividend of SEK -156 M to be paid for the financial year 2022, of which SEK -78 M was paid in April and SEK -78 M will be paid in October 2023.
Condensed statement of changes in equity
| (SEK M) | 2023
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Equity at beginning of period | 1,536 | 1,688 | 1,637 | 1,413 | 1,413 | 1,731 |
| Comprehensive income for the period | -59 | 43 | -4 | 474 | 380 | -98 |
| Dividend | 0 | - | -156 | -156 | -156 | -156 |
| Equity at end of period | 1,477 | 1,731 | 1,477 | 1,731 | 1,637 | 1,477 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2023
Note 1 Amortizations and depreciations
| (SEK M) | 2023
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Amortization of intangible assets | 1 | 1 | 3 | 3 | 4 | 4 |
| Depreciation of tangible assets | 6 | 5 | 17 | 15 | 21 | 23 |
| Depreciation of right of use assets | 23 | 22 | 71 | 66 | 90 | 95 |
| Total amortizations and depreciations | 30 | 28 | 91 | 84 | 115 | 122 |
Note 2 Items affecting comparability
| (SEK M) | 2023
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Restructuring expenses | -6 | - | -6 | - | - | -6 |
| Total items affecting comparability | -6 | - | -6 | - | - | -6 |
Note 3 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-September 2023
Segment reporting
Net sales by business area
| (SEK M) | 2023
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | 540 | 757 | 2,020 | 2,631 | 3,408 | 2,797 |
| Finland & Baltics | 656 | 766 | 2,165 | 2,794 | 3,497 | 2,868 |
| Parent Company & consolidated items | -9 | -9 | -34 | -22 | -30 | -42 |
| Group | 1,187 | 1,514 | 4,151 | 5,403 | 6,875 | 5,623 |
Net sales by business area and product group
| 2023 | Sweden & Poland | Finland & Baltics | Parent company & consolidated items | Total | |||||
|---|---|---|---|---|---|---|---|---|---|
| (SEK M) | Jul-Sep | Jan-Sep | Jul-Sep | Jan-Sep | Jul-Sep | Jan-Sep | Jul-Sep | Jan-Sep | Rolling 12 months |
| Long steel products | 248 | 926 | 188 | 600 | 0 | 0 | 436 | 1,526 | 2,129 |
| Flat steel products | 210 | 777 | 335 | 1,104 | 0 | 0 | 545 | 1,881 | 2,501 |
| Stainless steel | 59 | 236 | 93 | 328 | 0 | 0 | 152 | 564 | 743 |
| Aluminium | 16 | 53 | 28 | 93 | 0 | 0 | 44 | 146 | 202 |
| Other | 7 | 28 | 12 | 40 | -9 | -34 | 10 | 34 | 48 |
| Total | 540 | 2,020 | 656 | 2,165 | -9 | -34 | 1,187 | 4,151 | 5,623 |
| 2022 | Sweden & Poland | Finland & Baltics | Parent company & consolidated items | Total | |||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (SEK M) | Jul-Sep | Jan-Sep | Jul-Sep | Jan-Sep | Jul-Sep | Jan-Sep | Jul-Sep | Jan-Sep | 2022 Full-year |
| Long steel products | 418 | 1,382 | 242 | 840 | 0 | 0 | 660 | 2,222 | 2,825 |
| Flat steel products | 235 | 781 | 372 | 1,402 | 0 | 0 | 607 | 2,183 | 2,803 |
| Stainless steel | 80 | 318 | 107 | 396 | 0 | 0 | 187 | 714 | 893 |
| Aluminium | 17 | 74 | 34 | 126 | 0 | 0 | 51 | 200 | 256 |
| Other | 7 | 76 | 11 | 30 | -9 | -22 | 9 | 84 | 98 |
| Total | 757 | 2,631 | 766 | 2,794 | -9 | -22 | 1,514 | 5,403 | 6,875 |
Net sales by country based on customer's domicile
| (SEK M) | 2023
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden | 511 | 735 | 1,898 | 2,571 | 3,261 | 2,588 |
| Finland | 583 | 699 | 1,935 | 2,511 | 3,162 | 2,586 |
| Other | 93 | 80 | 318 | 321 | 452 | 449 |
| Group | 1,187 | 1,514 | 4,151 | 5,403 | 6,875 | 5,623 |
Shipped tonnage per segment
| (Thousands of thonnes) | 2023
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | 29 | 34 | 103 | 120 | 157 | 140 |
| Finland & Baltics | 36 | 34 | 117 | 129 | 164 | 152 |
| Parent Company & consolidated items | -1 | 0 | -2 | -1 | -1 | -2 |
| Group | 64 | 68 | 218 | 248 | 320 | 290 |
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2023
Operating result (EBIT) per segment
| (SEK M) | 2023
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | -20 | 26 | -7 | 232 | 217 | -22 |
| Finland & Baltics | -20 | 16 | -1 | 315 | 217 | -99 |
| Parent Company & consolidated items | -2 | -2 | -7 | -10 | -16 | -13 |
| Group | -42 | 40 | -15 | 537 | 418 | -134 |
Operating margin per segment
| | 2023
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | -3.6% | 3.4% | -0.3% | 8.8% | 6.4% | -0.8% |
| Finland & Baltics | -3.0% | 2.2% | 0.0% | 11.3% | 6.2% | -3.5% |
| Parent Company & consolidated items | neg | neg | neg | neg | neg | neg |
| Group | -3.5% | 2.6% | -0.4% | 9.9% | 6.1% | -2.4% |
Underlying operating result (uEBIT) per segment 1)
| (SEK M) | 2023
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | 3 | 41 | 43 | 223 | 236 | 56 |
| Finland & Baltics | 3 | 29 | 9 | 326 | 267 | -50 |
| Parent Company & consolidated items | -2 | -3 | -5 | -11 | -15 | -9 |
| Group | 4 | 67 | 47 | 538 | 488 | -3 |
Underlying operating margin per segment 2)
| | 2023
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | 0.5% | 5.5% | 2.1% | 8.5% | 6.9% | 2.0% |
| Finland & Baltics | 0.5% | 3.7% | 0.4% | 11.7% | 7.6% | -1.7% |
| Parent Company & consolidated items | neg | neg | neg | neg | neg | neg |
| Group | 0.3% | 4.4% | 1.1% | 10.0% | 7.1% | -0.1% |
Depreciation per segment
| (SEK M) | 2023
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | 3 | 3 | 9 | 9 | 12 | 12 |
| Finland & Baltics | 3 | 2 | 9 | 7 | 11 | 13 |
| Parent Company & consolidated items | 24 | 23 | 73 | 68 | 92 | 97 |
| Group | 30 | 28 | 91 | 84 | 115 | 122 |
Investments in tangible and intangible assets per segment
| (SEK M) | 2023
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Sweden & Poland | 4 | 1 | 14 | 4 | 6 | 16 |
| Finland & Baltics | 6 | 21 | 68 | 38 | 47 | 77 |
| Parent Company & consolidated items | 0 | 0 | 0 | 0 | 0 | 0 |
| Group | 10 | 22 | 82 | 42 | 53 | 93 |
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 2023
Key data
| (SEK M unless otherwise stated) | 2023Jul-Sep | 2022Jul-Sep | 2023Jan-Sep | 2022Jan-Sep | 2022Full-year | Rolling12 months |
|---|---|---|---|---|---|---|
| Net sales | 1,187 | 1,514 | 4,151 | 5,403 | 6,875 | 5,623 |
| Earnings measurements | ||||||
| Gross result | 99 | 173 | 430 | 958 | 1,009 | 481 |
| Underlying gross result | 134 | 197 | 475 | 965 | 1,075 | 585 |
| Operating result (EBIT) | -42 | 40 | -15 | 537 | 418 | -134 |
| Underlying operating result (uEBIT) | 4 | 67 | 47 | 538 | 488 | -3 |
| Margin measurements | ||||||
| Gross margin | 8.3% | 11.5% | 10.4% | 17.7% | 14.7% | 8.5% |
| Underlying gross margin | 11.3% | 13.0% | 11.5% | 17.9% | 15.6% | 10.4% |
| Operating margin | -3.5% | 2.6% | -0.4% | 9.9% | 6.1% | -2.4% |
| Underlying operating margin | 0.3% | 4.4% | 1.1% | 10.0% | 7.1% | -0.1% |
| Capital structure | ||||||
| Net debt excl. IFRS 16 1) | 251 | 475 | 251 | 475 | 357 | 251 |
| Net debt/equity ratio excl. IFRS 16 1) | 16.9% | 27.4% | 16.9% | 27.4% | 21.7% | 16.9% |
| Working capital at end of period | 777 | 1,340 | 777 | 1,340 | 1,130 | 777 |
| Working capital (average) | 784 | 1,204 | 908 | 1,046 | 1,064 | 993 |
| Capital employed (average) excl. IFRS 16 1) | 1,842 | 2,197 | 1,932 | 1,991 | 2,003 | 2,005 |
| Working capital tied-up | 16.5% | 19.9% | 16.4% | 14.5% | 15.5% | 17.7% |
| Return | ||||||
| Return on capital employed excl. IFRS 16 1) | -9.5% | 6.8% | -1.5% | 35.4% | 20.3% | -7.1% |
| Per share data | ||||||
| Earnings per share (SEK) | -3.27 | 2.05 | -2.02 | 32.76 | 24.96 | -9.81 |
| Earnings per share after dilution (SEK) | -3.27 | 2.05 | -2.02 | 32.76 | 24.96 | -9.81 |
| Equity per share (SEK) | 113.75 | 133.30 | 113.75 | 133.30 | 126.11 | 113.75 |
| Cash flow from operating activities per share (SEK) | -1.31 | -14.14 | 26.23 | 4.00 | 15.72 | 37.98 |
| 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 | -22% | 10% | -23% | 39% | 28% | -19% |
| - of which organic tonnage growth | -6% | -15% | -14% | -8% | -9% | -14% |
| - of which price and mix changes | -21% | 19% | -13% | 42% | 32% | -10% |
| - of which currency effects | 5% | 3% | 5% | 2% | 2% | 5% |
| - of which acquisitions | 0% | 4% | 0% | 3% | 3% | 1% |
| - of which divestments | 0% | -1% | -1% | 0% | 0% | -1% |
| Other | ||||||
| Average number of employees | 692 | 656 | 683 | 651 | 654 | 676 |
| Inventory gains and losses | -40 | -27 | -56 | -1 | -70 | -125 |
| Shipped tonnage (thousands of tonnes) | 64 | 68 | 218 | 248 | 320 | 290 |
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 2023
Condensed parent company income statement
| (SEK M) | 2023 | 2022 | 2023 | 2022 | 2022 | Rolling |
|---|---|---|---|---|---|---|
| Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Full-year | 12 months | |
| Net sales | 35 | 30 | 104 | 90 | 148 | 162 |
| Administrative expenses | -16 | -14 | -53 | -43 | -68 | -78 |
| Other operating income and expenses | 0 | 0 | 0 | 0 | 1 | 1 |
| Operating profit/loss | 19 | 16 | 51 | 47 | 81 | 85 |
| Financial items | 44 | 7 | 93 | 263 | 266 | 96 |
| Profit/loss after financial items | 63 | 23 | 144 | 310 | 347 | 181 |
| Appropriations | - | - | - | - | 39 | 39 |
| Profit/loss before tax | 63 | 23 | 144 | 310 | 386 | 220 |
| Tax | -4 | -4 | -12 | -11 | -26 | -27 |
| Profit/loss for the period, or comprehensive income for the period | 59 | 19 | 132 | 299 | 360 | 193 |
Condensed parent company balance sheet
| (SEK M) | 2023 | 2022 | 2022 |
|---|---|---|---|
| Sep 30 | Sep 30 | Dec 31 | |
| Intangible assets | 2 | 3 | 3 |
| Tangible assets | 0 | 0 | 0 |
| Financial assets | 873 | 868 | 873 |
| Total non-current assets | 875 | 871 | 876 |
| Current receivables | 408 | 249 | 377 |
| Cash and equivalents | 4 | 72 | 31 |
| Total current assets | 412 | 321 | 408 |
| Total assets | 1,287 | 1,192 | 1,284 |
| Equity | 1,139 | 1,102 | 1,163 |
| Non-current liabilities | 0 | 39 | 39 |
| Current liabilities | 148 | 51 | 82 |
| Total equity and liabilities | 1,287 | 1,192 | 1,284 |
Total decided dividend for the financial year 2022 amounts to SEK 156 M, of which SEK 78 M was paid in April and SEK 78 M will be paid in October 2023.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 2023
Key data – multi-quarter summary
| (SEK M unless otherwise stated) | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | 2022 | 2021 | 2021 |
|---|---|---|---|---|---|---|---|---|---|
| Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | |
| Net sales | 1,187 | 1,406 | 1,558 | 1,472 | 1,514 | 2,044 | 1,845 | 1,510 | 1,375 |
| Earnings measurements | |||||||||
| Gross result | 99 | 172 | 159 | 51 | 173 | 458 | 327 | 283 | 316 |
| Underlying gross result | 134 | 181 | 160 | 110 | 197 | 446 | 322 | 269 | 301 |
| Operating result (EBIT) | -42 | 26 | 1 | -119 | 40 | 313 | 184 | 158 | 219 |
| Underlying operating result (uEBIT) | 4 | 33 | 10 | -50 | 67 | 291 | 180 | 135 | 193 |
| Margin measurements | |||||||||
| Gross margin | 8.3% | 12.3% | 10.2% | 3.4% | 11.5% | 22.4% | 17.7% | 18.7% | 23.0% |
| Underlying gross margin | 11.3% | 12.8% | 10.3% | 7.4% | 13.0% | 21.8% | 17.5% | 17.8% | 21.9% |
| Operating margin | -3.5% | 1.9% | 0.0% | -8.1% | 2.6% | 15.3% | 10.0% | 10.4% | 15.9% |
| Underlying operating margin | 0.3% | 2.4% | 0.6% | -3.4% | 4.4% | 14.2% | 9.8% | 9.0% | 14.0% |
| Capital structure | |||||||||
| Net debt excl. IFRS 16 1) | 251 | 203 | 204 | 357 | 475 | 237 | 159 | 241 | 98 |
| Net debt/equity ratio excl. IFRS 16 1) | 16.9% | 13.2% | 12.4% | 21.7% | 27.4% | 14.0% | 10.1% | 17.0% | 7.6% |
| Working capital at end of period | 777 | 792 | 931 | 1,130 | 1,340 | 1,070 | 920 | 856 | 610 |
| Working capital (average) | 784 | 861 | 1,031 | 1,234 | 1,204 | 996 | 889 | 734 | 523 |
| Capital employed (average) excl. IFRS 16 1) | 1,842 | 1,964 | 2,023 | 2,173 | 2,197 | 1,977 | 1,785 | 1,639 | 1,467 |
| Working capital tied-up | 16.5% | 15.3% | 16.5% | 21.0% | 19.9% | 12.2% | 12.0% | 12.1% | 9.5% |
| Return | |||||||||
| Return on capital employed excl. IFRS 16 1) | -9.5% | 4.9% | -0.4% | -22.3% | 6.8% | 62.6% | 40.9% | 38.3% | 59.1% |
| Per share data | |||||||||
| Earnings per share (SEK) | -3.27 | 1.47 | -0.22 | -7.79 | 2.05 | 19.30 | 11.41 | 10.00 | 13.49 |
| Earnings per share after dilution (SEK) | -3.27 | 1.47 | -0.22 | -7.79 | 2.05 | 19.30 | 11.41 | 10.00 | 13.49 |
| Equity per share (SEK) | 113.75 | 118.32 | 126.57 | 126.11 | 133.30 | 130.04 | 120.80 | 108.84 | 98.68 |
| Cash flow from operating activities per share (SEK) | -1.31 | 10.16 | 17.37 | 11.75 | -14.14 | 9.79 | 8.35 | -8.87 | 0.50 |
| Shares outstanding at period end (thousands) | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 | 12,983 |
| 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 | -22% | -31% | -16% | -3% | 10% | 46% | 68% | 73% | 85% |
| - of which organic tonnage growth | -6% | -18% | -15% | -14% | -15% | -14% | 4% | 4% | 21% |
| - of which price and mix changes | -21% | -17% | -5% | 5% | 19% | 54% | 62% | 70% | 65% |
| - of which currency effects | 5% | 5% | 4% | 5% | 3% | 2% | 2% | -1% | -1% |
| - of which acquisitions | 0% | 0% | 1% | 3% | 4% | 4% | - | - | - |
| - of which divestments | 0% | -1% | -1% | -2% | -1% | - | - | - | - |
| Other | |||||||||
| Average number of employees | 692 | 689 | 674 | 656 | 656 | 665 | 645 | 627 | 625 |
| Inventory gains and losses | -40 | -7 | -9 | -69 | -27 | 22 | 4 | 23 | 26 |
| Shipped tonnage (thousands of tonnes) | 64 | 73 | 81 | 72 | 68 | 88 | 92 | 79 | 77 |
1) To visualize the development of BE Group's financial position, some information is in the key figure overview that is not defined in IFRS. A reconciliation/bridge between alternative performance measures used in this report and the closest IFRS measure is presented under Alternative performance measures.
BE Group AB (publ) / Corp. Reg. No. 556578-4724 / Interim report January-September 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
Jul-Sep | 2022
Jul-Sep | 2023
Jan-Sep | 2022
Jan-Sep | 2022
Full-year | Rolling
12 months |
| --- | --- | --- | --- | --- | --- | --- |
| Operating result | -42 | 40 | -15 | 537 | 418 | -134 |
| Reversal of inventory gains (-)/losses (+) | 40 | 27 | 56 | 1 | 70 | 125 |
| Adjustment for items affecting comparability | 6 | – | 6 | – | – | 6 |
| Group | 4 | 67 | 47 | 538 | 488 | -3 |
Working capital
| (SEK M) | 2023
Sep 30 | 2022
Sep 30 | 2022
Dec 31 |
| --- | --- | --- | --- |
| Inventories | 881 | 1,418 | 1,127 |
| Accounts receivable | 710 | 934 | 675 |
| Other receivables | 149 | 23 | 78 |
| Deduction accounts payable | -627 | -692 | -480 |
| Deduction other current liabilities | -336 | -343 | -269 |
| Rounding | – | – | -1 |
| Group | 777 | 1,340 | 1,130 |
Average working capital is an average for each period based on quarterly data.
Net debt excl. IFRS 16
| (SEK M) | 2023
Sep 30 | 2022
Sep 30 | 2022
Dec 31 |
| --- | --- | --- | --- |
| Non-current interest-bearing liabilities and leasing liabilities | 655 | 970 | 811 |
| Current interest-bearing liabilities and leasing liabilities | 104 | 101 | 95 |
| Deduction leasing liabilities | -495 | -515 | -499 |
| Deduction financial assets | 0 | 0 | 0 |
| Deduction cash and equivalents | -14 | -80 | -50 |
| Rounding | 1 | -1 | – |
| Group | 251 | 475 | 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
Sep 30 | 2022
Sep 30 | 2022
Dec 31 |
| --- | --- | --- | --- |
| Equity excl. IFRS 16 | 1,484 | 1,738 | 1,645 |
| Non-current interest-bearing liabilities and leasing liabilities | 655 | 970 | 811 |
| Current interest-bearing liabilities and leasing liabilities | 104 | 101 | 95 |
| Deduction leasing liabilities | -495 | -515 | -499 |
| Rounding | 1 | – | – |
| Group | 1,749 | 2,294 | 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-September 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-September 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-September 2023