The Group & Parent Company

Net financial items and tax

The Group’s consolidated net financial items in the third quarter amounted to SEK -7 M (-9), of which net interest amounted to SEK -7 M (-7). During the quarter, interest expenses related to leases according to IFRS 16 amounted to SEK -2 M (-3). Net financial items for the first nine months amounted to SEK -20 M (-18) and net interest to SEK -21 M (-20), of which SEK -7 M (-8) relates to leases according to IFRS 16.

Taxes for the third quarter amounted to SEK 20 M (9) and to SEK 15 M (7) for the first nine months. The positive tax effect in the quarter is mainly explained by reversal of a deferred tax liability in the Baltics. Profit after tax amounted to SEK 18 M (-42) and was SEK 15 M (-26) for the first nine months.

Cash flow

The Group’s consolidated working capital amounted to SEK 703 M (777) at the end of the period and the working capital tied-up for the third quarter was 16.4 percent (16.5). The lower working capital is mainly explained by decreased accounts receivable, which amounted to SEK 632 M (710) at the end of the period. The decrease in accounts receivable is explained by lower sales as a result of lower steel prices. Cash flow from operating activities amounted to SEK -13 M (-17) during the quarter and to SEK 52 M (341) for the first nine months.

Cash flow from investing activities amounted to SEK -16 M (-10) during the third quarter and to SEK -58 M (-82) for the first nine months and mainly refers to the investment in a new business system. Cash flow after investments thus amounted to SEK -29 M (-27) during the third quarter and to SEK -6 M (259) 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 175 M (164) and the net debt excl. IFRS 16 was SEK 341 M (251). Equity amounted to SEK 1,449 M (1,477) at the end of the period.

Organization, structure and employees

The number of employees amounted to 634 compared to 689 at the same time last year. The average number of employees during the third quarter amounted to 636 (692).

Parent Company & consolidated items

Parent Company & consolidated items include the Parent Company and Group eliminations. For additional information see the Annual Report for 2023.

The effects regarding IFRS 16 were reported under Parent Company & consolidated items and have not been allocated to the two business areas.

Parent Company

Sales for the third quarter of the Parent Company, BE Group AB (publ), amounted to SEK 32 M (35) 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 -15 M (-16), SEK 15 M (14) was allocated to the subsidiaries. The operating result amounted to SEK 17 M (19). For the first nine months, net sales amounted to SEK 99 M (104) and the operating result to SEK 52 M (51).

Net financial items for the quarter amounted to SEK 2 M (44). Profit before tax amounted to SEK 19 M (63) and profit after tax amounted to SEK 15 M (59). Investments in the Parent Company during the quarter amounted to SEK 12 M (0). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 14 M (4).

Net financial items for the first nine months amounted to SEK 10 M (93). Profit before tax amounted to SEK 62 M (144) and profit after tax amounted to SEK 49 M (132). Investments in the Parent Company amounted to SEK 48 M (0).

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