Deliver value-creating solutions

In 2023, the business area accounted for a total of 51 percent (51) of the Group’s net sales. The business area consists of the Group’s operations in Finland and the three Baltic States. The operations in Finland consist of production and warehousing facilities in Lapua, Lahti and Turku and sales offices in nine locations. The operations in the Baltics consists of sales units in Maardu, Riga and Kaunas and a warehouse facility in Maardu.

In the Finnish market, the Company has 2,900 customers and the ten largest customers account for 11 percent of the business area’s sales. Focus is on delivering value-generating services to both construction and manufacturing industries. BE Group Finland is running its own steel service center for cutting and slitting of thin sheets and coils, which means a higher share of sales of these products compared with business area Sweden & Poland. The primary competitors are Tibnor and Feon.

In the Baltics, the market is more fragmented and conditions vary substantially between Estonia, Latvia and Lithuania, and BE Group generally has a smaller position in the market.

Sales and business development

Net sales for the year decreased by -22 percent compared to last, amounting to SEK 2,729 M (3,497). Delivered tonnage during the period decreased by -8 percent due to the weak economy.

The operating result amounted to SEK -22 M (217) and adjusted for inventory losses of SEK -17 M (-50) and items affecting comparability of SEK -2 M (-), the underlying operating result amounted to SEK -5 M (267). The weak result is attributable to falling steel prices, declining volume in the Finnish operations and a pressured gross margin.

Continued development

The surrounding world situation meant that demand in 2023 was generally weak both in the construction and the manufacturing industries. Focus has been on exceeding customer expectations and strengthening cash flow. During the year, the implementation of the strategic investments continued. A fully automated saw and machining line for long products was installed at the Turku facility.

A major focus is now on growth, improving profitability in the Finnish operations and the Baltic operations and in areas such as development and sustainability. As before, the goal is to offer the best customer experience in our industry by providing value-creating solutions to every customer and segment that we focus on. In terms of sustainability efforts, the goal is to reduce the carbon footprint in both materials and production services.