The Group & Parent Company

Net financial items and tax

The Group’s consolidated net financial items in the second quarter amounted to SEK -8 M (-9), of which net interest amounted to SEK -5 M (-8). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -2 M (-2). Net financial items for the first six months amounted to SEK -15 M (-13) and net interest to SEK -11 M (-14), of which SEK -4 M (-5) relates to IFRS 16. Taxes for the second quarter amounted to SEK 42 M (-1), mainly due to write-downs. Profit after tax amounted to SEK -458 M (1) and was SEK -472 M (-3) for the first six months.

Cash flow

The Group’s consolidated working capital amounted to SEK 632 M (681) at the end of the period and the average working capital tied-up for the second quarter was 15.2 percent (13.4). The lower working capital is mainly explained by decreased inventory value, which amounted to SEK 670 M (790) 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 -4 M (21) during the quarter and to SEK -41 M (65) for the first six months mainly due to negative operating result. Cash flow from investing activities amounted to SEK -9 M (-16) during the quarter and to SEK -2 M (-42) for the first six months. Cash flow after investments thus amounted to SEK -13 M (5) during the second quarter and to SEK -43 M (23) for the first six months.

Financial position and liquidity

BE Group has, after the end of the quarter, together with its subsidiaries BE Group Sverige AB and BE Group Oy AB, entered into an amendment agreement with SEB regarding the SEK 775 million revolving credit facility entered into by BE Group and SEB on 1 June 2023. The Updated Credit Agreement replaces previous loan agreements and has a term of three years with an option to extend for a further two years. The agreement contains customary terms and conditions for this type of financing, including a restriction to refrain from resolving on dividends before 31 December 2026. The agreement also entails an obligation a preferential rights issue. The Company’s Board of Directors has therefore also resolved on a secured issue of shares with preferential rights for existing shareholders of approximately SEK 143 million before transaction costs. An extraordinary general meeting will be held on 25 August 2025 to decide on the preferential rights issue. The purpose of the rights issue and the updated credit agreement is to strengthen the Company’s balance sheet and thus give BE Group better stability and increased financial flexibility.

At the end of the period, consolidated cash and cash equivalents, including overdraft facilities, amounted to SEK 108 M (198) and the interest-bearing net debt excl. IFRS 16 was SEK 429 M (289). Equity amounted to SEK 906 M (1,434) at the end of the period. The decrease is mainly connected to write-down of goodwill of SEK -409 M.

Organization, structure and employees

The number of employees amounted to 524 compared to 638 at the same time last year. The average number of employees during the quarter amounted to 560 (643). The decrease is mainly attributable to the closure of the Polish unit and the site in Arvika.

Parent Company & consolidated items

Parent Company & consolidated items include the Parent Company and Group eliminations. For additional information see the Annual Report for 2024.

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 (33) 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 -24 M (-16), SEK 17 M (16) was allocated to the subsidiaries. The operating result amounted to SEK -22 M (17) and is related to the write-down of capitalized expenses for a new business system of SEK -31 M.

Net financial items for the quarter amounted to SEK -231 M (2) mainly attributable to write-down of shares in group company of SEK -234 M. Profit before tax amounted to SEK -253 M (19) and profit after tax amounted to SEK -249 M (15). Investments in the Parent Company during the quarter amounted to SEK 9 M (17). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 0 M (17).

Net financial items for the first six months amounted to SEK -231 M (8). Profit before tax amounted to SEK -238 M (43) and profit after tax amounted to SEK -237 M (34). Investments in the Parent Company for the first six months amounted to SEK 16 M (37).