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 2022.

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 35 M (30) during the period 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 -16 M (-14), SEK 14 M (10) was allocated to the subsidiaries. The operating result amounted to SEK 19 M (16). For the first nine months, net sales amounted to SEK 104 M (90) and the operating result to SEK 51 M (47).

Net financial items for the quarter amounted to SEK 44 M (7). Profit before tax amounted to SEK 63 M (23) and profit after tax amounted to SEK 59 M (19). Investments in the Parent Company amounted to SEK 0 M (0) for the quarter. At the end of the period, cash and equivalents in the Parent Company amounted to SEK 4 M (72).

Net financial items for the first nine months amounted to SEK 93 M (263). Profit before tax amounted to SEK 144 M (310) and profit after tax was SEK 132 M (299). 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 -9 M (-6), of which net interest amounted to SEK -7 M (-5). 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 -18 M (-13) and net interest to SEK -20 M (-12), of which SEK -8 M (-7) relates to leasing according to IFRS 16.

Taxes for the third quarter amounted to SEK 9 M (-8) and was SEK 7 M (-99) for the first nine months. Profit after tax amounted to SEK -42 M (26) and was SEK -26 M (425) for the first nine months.

Cash flow

The Group’s consolidated working capital amounted to SEK 777 M (1,340) at the end of the period and the average working capital tied-up for the third quarter was 16.5 percent (19.9). The lower working capital is mainly attributable to decreased inventory value, which amounted to SEK 881 M (1,418) at the end of the period and decreased accounts receivable which amounted to SEK 710 M (934). The decrease in inventory value is due to lower average prices and adjustment of inventory levels as a consequence of lower demand. Cash flow from operating activities amounted to SEK -17 M (-183) during the quarter and to SEK 341 M (52) for the first nine months.

Cash flow from investing activities amounted to SEK -10 M (-21) for the third quarter and to SEK -82 M (-50) for the first nine months. Cash flow after investments thus amounted to SEK -27 M (-204) during the third quarter and increased to SEK 259 M (2) 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 164 M (230) and the interest-bearing net debt excl. IFRS 16 was SEK 251 M (475). Equity amounted to SEK 1,477 M (1,731) at the end of the period.

Organization, structure and employees

The number of employees amounted to 689 compared to 646 at the same time last year. The average number of employees during the quarter amounted to 692 (656).

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