BUSINESS AREA
SWEDEN & POLAND

The business area includes the Group’s operations in Sweden consisting of the companies BE Group Sverige and Lecor Stålteknik, as well as the Polish operation BE Group Poland.

Second quarter

Net sales increased by 47 percent in the second quarter compared to last year and amounted to SEK 1,032 M (702). The higher sales is explained by positive price and mix effects of 55 percent, acquisitions of 7 percent counteracted by negative organic tonnage growth of -15 percent. The operating result increased to SEK 130 M (56). Adjusted for inventory gains of SEK 17 M (16), the underlying operating result increased to SEK 113 M (40).

The Swedish operations delivered a stronger underlying operating result compared to last year driven by high steel prices while tonnage was lower. Our joint venture AMBE provided a strong operating result as a result of high prices on thin sheets and slightly higher tonnage.

In the Polish operations and in Lecor Stålteknik profitability improved as a result of higher occupancy and improved price and mix effects.

The final purchase price for the acquisition of Hercules Rebar amounted to SEK 96 M. The transaction included net assets in the form of inventory of SEK 86 M, tangible assets of SEK 9 M and other of SEK 1 M. Costs related to the acquisition of approximately SEK 500 K are reported as administrative expenses. Since the take-over, the acquisition has contributed with SEK 53 M to the business area’s net sales. Financially, the acquisition is expected to contribute with approximately SEK 135 M in sales for 2022 and affect the result marginally positive during the year.

First six months

Net sales for the first six months increased by 50 percent compared to last year, amounting to SEK 1,874 M (1,252). Operating result increased to SEK 206 M (92). Adjusted for inventory gains of SEK 24 M (28), the underlying operating result increased to SEK 182 M (64). Tonnage decreased by -5 percent including aquisitions, mainly due to reduced inventory sales.