Comments on the report

Second quarter

Consolidated net sales for the period increased by 50 percent compared to last year, amounting to SEK 1,403 M (935). The increase is mainly explained by organic tonnage growth of 28 percent, positive price and mix effects of 25 percent and negative currency effects of -3 percent. Tonnage increased strongly compared to last year when the OEM customers and subcontractors to the automotive industry sharply reduced their operations in part of the second quarter as a result of the pandemic. The positive price effect is due to rising steel prices.

Increased volumes, higher steel prices and inventory gains contributed to an increased gross profit of SEK 296 M (138) corresponding to a gross margin of 21.1 percent (14.7). The operating result increased to SEK 158 M (21), corresponding to an operating margin of 11.3 percent (2.2). Adjusted for inventory gains and losses of SEK 25 M (-2) and items affecting comparability of SEK 0 M (-5), the underlying operating result increased to SEK 133 M (28). The underlying operating margin during the period increased to 9.5 percent (3.0) and the improvement is mainly explained by higher tonnage and improved gross margin.

First six months

During the first six months, the Group’s net sales increased by 22 percent compared to last year and amounted to SEK 2,503 M (2,053). Tonnage in business area Sweden & Poland increased by 13 percent compared to last year, while Finland & Baltics delivered 10 percent more. Gross profit increased to SEK 503 M (308) and the gross margin improved to 20.1 percent (15.0).

The operating result increased to SEK 244 M (17), corresponding to an operating margin of 9.7 percent (0.8). Adjusted for inventory gains and losses of SEK 43 M (-13) and items affecting comparability of SEK 0 M (-40), the underlying operating result increased to SEK 201 M (70). The underlying operating margin amounted to 8.0 percent (3.4) during the period.

Covid-19 summary

The pandemic continues to affect public health, economies and the financial situation worldwide and its full scope and duration is not yet known. The uncertain market situation has, during the past year, led BE Group to take several measures necessary to mitigate the effects of Covid-19. As the situation now gradually improves, the measures have been reduced. The Company has not received Government grants for the period after the end of February 2021 and the previous granted deferral of tax payments of approximately SEK 30 M was refunded in April 2021.

BE Group is continuing to monitor the development closely and is prepared to take 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.