The Group & Parent Company

Net financial items and tax

The Group’s consolidated net financial items in the second quarter amounted to SEK -9 M (-4), of which net interest amounted to SEK -8 M (-7). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -2 M (-3). Net financial items for the first six months amounted to SEK -13 M (-9) and net interest to SEK -14 M (-13), of which SEK -5 M (-5) relates to IFRS 16.

Taxes for the second quarter amounted to SEK -1 M (-3). Profit after tax amounted to SEK 1 M (19) and was SEK -3 M (16) for the first six months.

Cash flow

The Group’s consolidated working capital amounted to SEK 681 M (792) at the end of the period and the average working capital tied-up for the second quarter was 13.4 percent (15.3). The lower working capital is mainly explained by decreased inventory value, which amounted to SEK 790 M (999) at the end of the period. The decrease in inventory value is due to lower average prices and decreased inventory levels. Cash flow from operating activities amounted to SEK 21 M (132) during the quarter and to SEK 65 M (358) for the first six months.

Cash flow from investing activities amounted to SEK -16 M (-24) during the quarter and to SEK -42 M (-72) for the first six months and mainly refers to the investment in a new business system. Cash flow after investments thus amounted to SEK 5 M (108) during the second quarter and to SEK 23 M (286) 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 198 M (338) and the interest-bearing net debt excl. IFRS 16 was SEK 289 M (203). Equity amounted to SEK 1,434 M (1,536) at the end of the period.

Organization, structure and employees

The number of employees amounted to 638 compared to 696 at the same time last year. The average number of employees during the quarter amounted to 643 (689).

Parent Company & consolidated items

Parent Company & consolidated items include the Parent Company and Group eliminations. For additional information see the Annual Report for 2023.

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

Parent Company

Sales for the second quarter of the Parent Company, BE Group AB (publ), amounted to SEK 33 M (35) 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 -16 M (-18), SEK 16 M (14) was allocated to the subsidiaries. The operating result amounted to SEK 17 M (17).

Net financial items for the quarter amounted to SEK 2 M (46) mainly attributable to no dividends being received from subsidiaries. Profit before tax amounted to SEK 19 M (63) and profit after tax amounted to SEK 15 M (58). Investments in the Parent Company during the quarter amounted to SEK 17 M (0). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 17 M (181).

Net financial items for the first six months amounted to SEK 8 M (49). Profit before tax amounted to SEK 43 M (81) and profit after tax amounted to SEK 34 M (73). Investments in the Parent Company for the first six months amounted to SEK 37 M (0).