Financial targets and outcome

Earnings in BE Group shall be used to develop the business and generate returns for the owners. The Board of Directors of BE Group has therefore set three financial targets that should be achieved for earnings to be considered adequate. Over time, the goal completion can vary depending on various phases in the Company’s development and the current business cycle.

Sales growth that exceeds the market growth

To measure growth in BE Group’s markets, the market statistics that the company receives for the distribution markets in Sweden and Finland are used. By comparing tonnage growth year on year in this data, the growth in the market is estimated. BE Group’s growth is measured in delivered tonnes in the Swedish, Finnish and Baltic markets. For Sweden, deliveries for the joint venture ArcelorMittal BE Group SSC AB are included. The target is to grow more than the market.


The market is estimated to have decreased by -7.0 percent (-9.4) compared to last year. BE Group had a negative growth of -10.2 percent (-7.1) during the year and has not fulfilled the target for 2020. It is mainly attributable to postponement of larger construction projects as a result of Covid-19 and the managements focus on margin during the year.

A profit margin of at least 5 percent

Profit margin is defined as the underlying operating margin (uEBIT%) in the past 12 months. The target level is set to at least 5 percent measured over a longer period of time. This corresponds to approximately SEK 184 M in underlying operating result (uEBIT) at current sales. The underlying operating result, i.e. the operating result excluding the impact of inventory gains or losses and items affecting comparability, is used to put focus on how the operating activities perform and develop.


The underlying operating margin amounted to 2.6 percent (2.1) for 2020.

At least 15 percent return on capital employed

As a measure of return, return on capital employed excl. IFRS 16 is used, defined as operating result excl. IFRS 16 in the past 12 months divided by the average capital employed excl. IFRS 16 (equity and interest-bearing liabilities). The target level is set to at least 15 percent considering the prevailing capital structure and interest rates. The measure is calculated based on recognized operating profit, i.e. including inventory gains and losses and items affecting comparability, to put focus on the actual returns to the owners.


The return on capital employed decreased to 2.3 percent (5.6) during the year. The reason is mainly that the operating result has decreased due to declining sales volumes and items affecting comparability and inventory losses. The diagram also illustrates an adjusted return where items affecting comparability have been excluded, which for 2020 results in an improved return on capital employed of 6.1 percent (5.6).

Growth greater than market
Underlying operating margin
Return on capital employed >15%