Local presence and high level of service

Business area Sweden & Poland accounted for 49 percent (49) of BE Group’s net sales in 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 and the Polish operation BE Group Poland. The roughly 2,000 customers in the manufacturing and construction industries receive deliveries from warehouse and production facilities in Norrköping and Arvika in Sweden and Trebaczew in Southern Poland. In addition to these facilities, BE Group Sweden has sales offices in additionally eight cities. The size and needs of the customers vary widely; the ten largest customers account for about 36 percent of the business area’s sales. Local presence, a high level of service and good understanding of customers are prerequisites for serving the market. The competitors in the market include SSAB-owned Tibnor and Stena Stål, which is a part of the Stena Group.

BE Group owns 50 percent of the company ArcelorMittal BE Group SSC AB in Karlstad, a steel service center where thin sheets and coils are cut and slit, with a turnover of SEK 1,044 M (1,192) during 2023.

Sales and business performance

Net sales for the year decreased by -23 percent compared to last year, and amounted to SEK 2,641 M (3,408). The operating result amounted to SEK -24 M (217). Adjusted for inventory losses of SEK -59 M (-19) and items affecting comparability of SEK -4 M (-), the underlying operating result amounted to SEK 39 M (236).

The result has weakened mainly due to falling steel prices, a gross margin under pressure, a weak demand mainly within the construction segment and a decrease in organic tonnage by -15 percent compared to 2022. The joint venture ArcelorMittal BE Group SSC is reported in accordance with the equity method and the participation in earnings for the year amounted to SEK 23 M (34).

Continued development

In 2023, focus was on continuing to serve our customers in a professional manner, strengthening cash flow and implementing the savings and efficiency enhancement program announced in the third quarter to mitigate the effect of the economic downturn. In the warehousing and production facility in Norrköping, the company has seen the effect of the structure and efficiency improvement work and the unit developed strongly. The market situation is tough and the construction sector is expected to continue at low levels and efforts to increase growth and strengthen margins will continue in 2024. This will take place through enhanced cooperation with our customers, active efforts to streamline the supply chain, to increase and clarify the value we generate and price them correctly and to continue working on the cost side.