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 2018.

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 third quarter of the Parent Company, BE Group AB (publ), amounted to SEK 28 M (27) during the period and derived from intra-Group services. These intra-Group services mainly include licensing fees regarding the subsidiaries’ use of the BE Group brand and central expenses for IT, Finance and Purchasing, etc. 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. Out of the total costs for the Parent Company, of SEK -11 M (-14), SEK -11 M (-11) was allocated to the subsidiaries. Operating result amounted to SEK 17 M (13). For the first nine months, net sales amounted to SEK 82 M (79) and the operating result to SEK 42 M (39).

Net financial items for the quarter amounted to SEK -9 M (4). Profit before tax amounted to SEK 8 M (17) and profit after tax amounted to SEK 6 M (12). Investments in the Parent Company amounted to SEK 0 M (0). At the end of the period, cash and equivalents in the Parent Company increased to SEK 94 M (41).

Net financial items for the first nine months amounted to SEK -10 M (7). Profit before tax amounted to SEK 32 M (46) and profit after tax was SEK 26 M (40). Investments in the Parent Company amounted to SEK 0 M (0).

Group

Net financial items and tax

The Group´s consolidated net financial items in the third quarter amounted to SEK -8 M (-2), of which net interest accounted for SEK -6 M (-3). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -3 M (-). Net financial items for the first nine months amounted to SEK -21 M (-11) and net interest amounted to SEK -17 M (-12) of which SEK -9 M is related to leasing according to IFRS 16.

Taxes for the third quarter amounted to SEK -2 M (-8). Profit after tax amounted to SEK 4 M (23) and amounted to SEK 43 M (69) for the first nine months including items affecting comparability of SEK 0 M (-16).

Cash flow

The Group´s consolidated working capital amounted to SEK 608 M (617) at the end of the period and the average working capital tied-up for the third quarter was 14.8 percent (13.4). Cash flow from operating activities amounted to SEK -14 M (-10) during the quarter, of which SEK 18 M is an effect of the implementation of IFRS 16 and to SEK 115 M (6) for the first nine months, of which SEK 58 M is an effect of the implementation of IFRS 16. Cash flow from investing activities was SEK -3 M (-11) for the third quarter and SEK -21 M (-22) for the first nine months. Cash flow after investments amounted to SEK -17 M (-21) during the third quarter and SEK 94 M (-16) for the first nine months.

Financial position and liquidity

At the end of the period, consolidated cash and cash equivalents, including overdraft facilities, amounted to SEK 268 M (137) and the interest-bearing net debt excl. IFRS 16 was SEK 431 M (513). Equity amounted to SEK 932 M (882) at the end of the period and the net debt/equity ratio amounted to 46 percent (58).

A new three-year credit agreement was signed with Skandinaviska Enskilda Banken AB. The facility amounts to SEK 825 M and matures in July 2022 with an option for extension by another two years.

Organization, structure and employees

The number of employees decreased to 649 compared with 665 at the same time last year. The decrease is mainly due to the restructuring done last year. The average number of employees during the quarter amounted to 646 (665).

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