Comments on the report

First quarter

Consolidated net sales for the period decreased by 2 percent compared to last year, amounting to SEK 1,100 M (1,118). The decrease is mainly explained by negative currency effects and slightly lower tonnage. The market recovery that occured during the fourth quarter last year, continued in the first quarter of this year within the construction as well as manufacturing industry.

Higher steel prices and inventory gains contributed to an increased gross profit of SEK 207 M (170) and also resulted in a stronger gross margin compared to last year of 18.9 percent (15.2). The operating result increased to SEK 86 M (-4), corresponding to an operating margin of 7.8 percent (-0.4). The operating result for the first quarter 2020 was impacted by items affecting comparability of SEK -35 M. Adjusted for inventory gains and losses of SEK 18 M (-11) and items affecting comparability of SEK 0 M (-35), the underlying operating result increased to SEK 68 M (42). The underlying operating margin during the period increased to 6.1 percent (3.8). The higher underlying result is mainly explained by an improved gross margin and lower costs.

Covid-19 summary

The full scope and duration of the on-going pandemic are not yet known, which means, as previously reported, that it is not possible to fully quantify its future impact on BE Group. The uncertain market situation has led BE Group to take several measures necessary to mitigate the effects of Covid-19. This primarily concerned the operations in Sweden and the company made use of Government grants up until the end of February 2021, such as the introduction of short-term lay-offs, for example. Government grants linked to Covid-19 contributed around SEK 1 M during the first quarter. These grants are recognized as cost-reductions of the items the grants pertains to. The previous granted deferral of tax payments of approximately SEK 30 M will be refunded in the beginning of the second quarter 2021. All of the companies in the Group focus extensively on cost control, savings and efficiency enhancements and report developments to Group Management weekly.

BE Group is monitoring the development closely and is prepared to take further actions to reduce the negative impact on the business. The company acts in accordance with decisions and recommendations from governments and authorities in the respective markets and with the health and well-being of its employees as a top priority.