“The focus of the company is always on sales, working capital and expenses. Now we are increasing that focus”

Statement from the CEO

The prevailing business environment has reduced demand during the third quarter, that also led to lower steel prices, which in turn pushed down the gross margin. For BE Group, this has meant a negative development of the operating result. However, net sales increased by 10% to SEK 1,514 million (1,375) compared to the previous year, but the underlying operating profit fell by 65% to SEK 67 million (193). Operating profit including inventory losses amounted to SEK 40 million (219).

The margin decrease was already seen in the second quarter and has subsequently continued. At the moment, this trend appears as if it will continue in the fourth quarter. However, the conditions are still good for 2022 to be a strong year in terms of earnings. For the first nine months, net sales amounted to SEK 5,403 M (3,878) and the operating result, including inventory gains and losses, amounted to SEK 537 M (463).

Steel price trend

The price decline that began in the second quarter continued into the third quarter as expected. The wave of hoarding in connection with Russia’s invasion of Ukraine was driven by concerns about problems with availability, which proved to be a smaller problem than feared. The result was inventory build-up throughout Europe. Prices have now leveled off.

Steel mills have carried out announced capacity reductions. If these lead to material shortages, prices can likely move quickly. An important task for BE Group is, now as always, to keep its ear very close to the ground.

Our focus

In a headwind, it’s important to stand with both feet firmly on the ground and to see things as they really are. Steel is steel and we are continuing to do business with our customers. The focus of the company is always on sales, working capital and expenses. Now we are increasing that focus.

The world will probably not end, which is why the thorough work continues to build a strong and stable company that, regardless of the economic situation, is better than before. The key words are sales culture, customer experience and digitalization!

Peter Andersson
President and CEO


Bridge 2021-2022 operating result SEK M
Q1 Q2 Q3 Q4 Jan-Sep
Brygga resultatutveckling 2021–2022. MSEK Q1 Q2 Q3 Q4 jan-sep
Operating result 2021 Rörelseresultat 2021 86 158 219 158 463
Reversal of inventory gains (-)/losses (+)
Återläggning lagervinster (-)/förluster (+)
-18 -25 -26 -23 -69
Items affecting comparability Jämförelsestörande poster
Underlying operating result 2021
Underliggande rörelseresultat 2021
68 133 193 135 394
Change in sales Försäljningsförändring 131 126 30 287
Change in underlying gross margin
Underliggande bruttomarginalförändring
-1 45 -134 -90
Change in overhead costs Omkostnadsförändring -18 -13 -22 -53
Underlying operating result 2022
Underliggande rörelseresultat 2022
180 291 67 538
Reversal of inventory gains (+)/losses (-)
Återläggning lagervinster (+)/förluster (-)
4 22 -27 -1
Items affecting comparability Jämförelsestörande poster
Operating result 2022 Rörelseresultat 2022 184 313 40 537