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 2019.

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 23 M (28) 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 which are included in the result for the business areas since the first quarter 2020. Comparative numbers have been restated. Out of the total costs for the Parent Company, of SEK 9 M (11), SEK 9 M (11) was allocated to the subsidiaries. The operating result amounted to SEK 15 M (17). For the first nine months, net sales amounted to SEK 72 M (82) and the operating result to SEK 41 M (42).

Net financial items for the quarter amounted to SEK -1 M (-9). Profit before tax amounted to SEK 14 M (8) and profit after tax amounted to SEK 11 M (6). Investments in the Parent Company amounted to SEK 0 M (0). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 88 M (94).

Net financial items for the first nine months amounted to SEK 22 M (-10). Profit before tax amounted to SEK 63 M (32) and profit after tax was SEK 58 M (26). 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 -7 M (-8), of which net interest amounted to SEK -5 M (-6). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -3 M (-3). Net financial items for the first nine months amounted to SEK -29 M (-21) and net interest amounted to SEK -14 M (-17) of which SEK -9 M (-9) is related to leasing according to IFRS 16.

Taxes for the third quarter amounted to SEK -1 M (-2). Profit after tax amounted to SEK -4 M (4) and was SEK -9 M (43) for the first nine months including items affecting comparability of SEK -40 M (-).

Cash flow

The Group’s consolidated working capital amounted to SEK 474 M (608) at the end of the period and the average working capital tied-up for the third quarter was 15.6 percent (14.8). Cash flow from operating activities amounted to SEK 1 M (-14) during the quarter, of which SEK 23 M (18) refers to IFRS 16, and to SEK 189 M (115) for the first nine months of which SEK 67 M (58) refers to IFRS 16. In addition to this, approximately SEK 30 M refers to a deferral of tax payments. Cash flow from investing activities amounted to SEK -3 M (-3) during the third quarter and SEK -16 M (-21) for the first nine months. Cash flow after investments thus amounted to SEK -2 M (-17) during the third quarter and SEK 173 M (94) 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 252 M (268) and the interest-bearing net debt excl. IFRS 16 was SEK 281 M (431). Equity amounted to SEK 920 M (932) at the end of the period and the net debt/equity ratio amounted to 30 percent (46).

Organization, structure and employees

The number of employees amounted to 632 compared to 649 at the same time last year. The average number of employees during the third quarter amounted to 636 (646).

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

The comparative figures for 2018 are prepared according to previous accounting principles regarding leasing (IAS 17).

The figures for 2019 and 2020 includes the effects of IFRS 16.