Parent Company & consolidated items

Parent Company & consolidated items include the Parent Company, Group eliminations and also parts of the Group’s operations undergoing restructuring. For additional information see the Annual Report for 2021.

The effects regarding IFRS 16 were reported under Parent Company & consolidated items and have not been allocated to the two business areas.

Sales for the second quarter of the Parent Company, BE Group AB (publ), amounted to SEK 30 M (22) during the period and derived from intra-Group services. These intra-Group services mainly include central expenses for IT and business systems, the subsidiaries’ use of the BE Group brand and Finance. These expenses are distributed and invoiced to all subsidiaries in the Group. In the result follow-up of the business areas, these intra-group expenses have been eliminated except for expenses for IT and business systems. Out of the total costs for the Parent Company, of SEK -15 M (-12), SEK 10 M (9) was allocated to the subsidiaries. The operating result amounted to SEK 15 M (10).

Net financial items for the quarter amounted to SEK 253 M (0) mainly attributable to dividend from subsidairy. Profit before tax amounted to SEK 268 M (10) and profit after tax amounted to SEK 265 M (8). Investments in the Parent Company amounted to SEK 0 M (2). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 157 M (182).

Net financial items for the first six months amounted to SEK 256 M (96). Profit before tax amounted to SEK 287 M (117) and profit after tax was SEK 280 M (113). Investments in the Parent Company amounted to SEK 0 M (3).

Group

Net financial items and tax

The Group’s consolidated net financial items in the second quarter amounted to SEK -5 M (-4), of which net interest amounted to SEK -4 M (-3). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -3 M (-2). Net financial items for the first six months amounted to SEK -7 M (-12) and net interest to SEK -7 M (-7), of which SEK -5 M (-5) relates to IFRS 16.

Taxes for the second quarter amounted to SEK -57 M (-27). Profit after tax amounted to SEK 251 M (127) and was SEK 399 M (190) for the first six months.

Cash flow

The Group’s consolidated working capital amounted to SEK 1,070 M (434) at the end of the period and the average working capital tied-up for the second quarter was 12.2 percent (7.2). The higher working capital is explained by an increased inventory value by the end of the period amounting to SEK 1,396 M (559). The increased inventory value is caused by increased average prices, acquisitions and a more restrained demand in the second quarter. Cash flow from operating activities increased to SEK 127 M (81) during the quarter and to SEK 235 M (141) for the first six months. Deferred supplier payments of approximately SEK 45 M during the first quarter, as a result of sanctions imposed on Russian-controlled companies, has been settled with the Finnish authorities during the second quarter.

Cash flow from investing activities amounted to SEK -23 M (-6) during the quarter and SEK -29 M (-9) for the first six months. Cash flow after investments thus amounted to SEK 104 M (75) during the second quarter and SEK 206 M (132) for the first six months.

Financial position and liquidity

At the end of the period, consolidated cash and cash equivalents, including overdraft facilities, amounted to SEK 318 M (290) and the interest-bearing net debt excl. IFRS 16 was SEK 237 M (75). Equity amounted to SEK 1,688 M (1,101) at the end of the period.

Organization, structure and employees

The number of employees amounted to 667 compared to 623 at the same time last year. The average number of employees during the year amounted to 665 (616).

The Group´s cash flow from operating activities, SEK M