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 2022.

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

Sales for the second quarter of the Parent Company, BE Group AB (publ), amounted to SEK 35 M (30) during the period and derived from intra-Group services. These intra-Group services mainly include the subsidiaries’ use of the BE Group brand and central expenses for IT 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 -18 M (-15), SEK 14 M (10) was allocated to the subsidiaries. The operating result amounted to SEK 17 M (15).

Net financial items for the quarter decreased to SEK 46 M (253) mainly attributable to lower dividend from subsidiaries. Profit before tax amounted to SEK 63 M (268) and profit after tax amounted to SEK 58 M (265). Investments in the Parent Company during the quarter amounted to SEK 0 M (0). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 181 M (157).

Net financial items for the first six months amounted to SEK 49 M (256). Profit before tax amounted to SEK 81 M (287) and profit after tax was SEK 73 M (280). Investments in the Parent Company for the first six months amounted to SEK 0 M (0).

Group

Net financial items and tax

The Group’s consolidated net financial items in the second quarter amounted to SEK -4 M (-5), of which net interest amounted to SEK -7 M (-4). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -3 M (-3). Net financial items for the first six months amounted to SEK -9 M (-7) and net interest to SEK -13 M (-7), of which SEK -5 M (-5) relates to IFRS 16.

Taxes for the second quarter amounted to SEK -3 M (-57). Profit after tax amounted to SEK 19 M (251) and was SEK 16 M (399) for the first six months.

Cash flow

The Group’s consolidated working capital amounted to SEK 792 M (1,070) at the end of the period and the average working capital tied-up for the second quarter was 15.3 percent (12.2). The lower working capital is mainly attributable to decreased accounts receivable and the decreased inventory value, which amounted to SEK 999 M (1,396) at the end of the period. The decrease in inventory value is due to lower average prices and adjustment of inventory levels as a consequence of lower demand in the second quarter. Cash flow from operating activities increased to SEK 132 M (127) during the quarter and to SEK 358 M (235) for the first six months.

Cash flow from investing activities amounted to SEK -24 M (-23) for the quarter and to SEK -72 M (-29) for the first six months and mainly refers to the investment in the fully automated saw and machining line in Finland. Cash flow after investments increased to SEK 108 M (104) during the second quarter and to SEK 286 M (206) 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 338 M (318) and the interest-bearing net debt excl. IFRS 16 was SEK 203 M (237). Equity amounted to SEK 1,536 M (1,688) at the end of the period.

During the second quarter, a new credit agreement was signed with a credit facility of SEK 775 M. The agreement has a maturity of three years with an option for extension by another two years. This ensures long-term financing of the company’s operations.

Organization, structure and employees

The number of employees amounted to 696 compared to 667 at the same time last year. The average number of employees during the quarter amounted to 689 (665).