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 2021.

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 30 M (21) 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. Out of the total costs for the Parent Company, of SEK -14 M (-10), SEK 10 M (9) was allocated to the subsidiaries. The operating result amounted to SEK 16 M (11). For the first nine months, net sales amounted to SEK 90 M (65) and the operating result to SEK 47 M (32).

Net financial items for the quarter amounted to SEK 7 M (1). Profit before tax amounted to SEK 23 M (12) and profit after tax amounted to SEK 19 M (10). 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 72 M (171).

Net financial items for the first nine months amounted to SEK 263 M (97). Profit before tax amounted to SEK 310 M (129) and profit after tax was SEK 299 M (123). Investments in the Parent Company amounted to SEK 0 M (3).

Group

Net financial items and tax

The Group’s consolidated net financial items in the third quarter amounted to SEK -6 M (-5), of which net interest amounted to SEK -5 M (-3). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -3 M (-2). Net financial items for the first nine months amounted to SEK -13 M (-17) and net interest to SEK -12 M (-11), of which SEK -7 M (-7) relates to IFRS 16.

Taxes for the third quarter amounted to SEK -8 M (-39). Profit after tax amounted to SEK 26 M (175) and was SEK 425 M (365) for the first nine months.

Cash flow

The Group’s consolidated working capital amounted to SEK 1,340 M (610) at the end of the period and the average working capital tied-up for the third quarter was 19.9 percent (9.5). The higher working capital is explained by an increased inventory value by the end of the period amounting to SEK 1,418 M (770). The increased inventory value is caused by increased average prices, acquisitions and a more moderate demand in the third quarter. Cash flow from operating activities amounted to SEK -183 M (6) during the quarter and to SEK 52 M (147) for the first nine months. Cash flow from investing activities amounted to SEK -21 M (-6) during the third quarter and SEK -50 M (-15) for the first nine months. Cash flow after investments thus amounted to SEK -204 M (0) during the third quarter and SEK 2 M (132) 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 230 M (276) and the interest-bearing net debt excl. IFRS 16 was SEK 475 M (98). Equity amounted to SEK 1,731 M (1,281) at the end of the period.

Organization, structure and employees

The number of employees amounted to 646 compared to 627 at the same time last year. The average number of employees during the third quarter amounted to 656 (625).

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