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 (-7), of which net interest was SEK -9 M (-7). 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 -22 M (-20) and net interest to SEK -20 M (-21), of which SEK -7 M (-7) relates to leasing according to IFRS 16.

Taxes for the third quarter amounted to SEK 8 M (20) and was SEK 55 M (15) for the first nine months. The positive tax effect of SEK 55 M is mainly attributable to tax reversal of the impairment in Finland of SEK 24 M and the remainder mainly attributable to capitalized loss carryforwards. Profit after tax amounted to SEK -29 M (18) and was SEK -501 M (15) for the first nine months.

Cash flow

The Group’s consolidated working capital amounted to SEK 573 M (703) at the end of the period and the average working capital tied-up for the third quarter was 17.5 percent (16.4). The lower working capital is mainly explained by decreased inventory value, which amounted to SEK 639 M (860) at the end of the period. The decrease in inventory value is due to lower average prices and decreased inventory levels. Cash flow from operating activities increased to SEK 48 M (-13) during the quarter and amounted to SEK 7 M (52) for the first nine months.

Cash flow from investing activities amounted to SEK -7 M (-16) during the third quarter and to SEK -9 M (-58) for the first nine months. Cash flow after investments thus increased to SEK 41 M (-29) during the third quarter and amounted to SEK -2 M (-6) for the first nine months.

Financial position and liquidity

During the quarter, BE Group conducted a rights issue that provided the company with gross proceeds of around SEK 143 M before issue costs of about SEK 8 M, of which about SEK 1 M constituted cash compensation for guarantors. Net proceeds thereby amounted to around SEK 135 M. Through the rights issue the share in capital increased by SEK 130 M to SEK 390 M. The total number of shares increased by 6 491 602 to 19 501 726, of which 26 920 represent BE Group’s holding of own shares.

At the end of the period, consolidated cash and cash equivalents, including overdraft facilities, amounted to SEK 247 M (175) and the interest-bearing net debt excl. IFRS 16 was SEK 278 M (341). Equity amounted to SEK 1,010 M (1,449) at the end of the period. The decrease is mainly connected to write-down of goodwill of SEK -409 M, which was carried out during the second quarter.

Organization, structure and employees

The number of employees amounted to 519 compared to 634 at the same time last year. The average number of employees during the third quarter amounted to 522 (636). The decrease is mainly attributable to the closure of the Polish unit and the site in Arvika.

Parent Company & consolidated items

Parent Company & consolidated items include the Parent Company and Group eliminations. For additional information see the Annual Report for 2024. 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 33 M (32) 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 -21 M (-15), SEK 18 M (15) was allocated to the subsidiaries. The operating result amounted to SEK 13 M (17). Sales for the first nine months amounted to SEK 101 M (99) and the operating result was SEK 6 M (52). The lower operating result is related to the write-down of capitalized expenses for a new business system of SEK -31 M, which was carried out in the second quarter.

Net financial items for the quarter amounted to SEK 1 M (2). Profit before tax amounted to SEK 14 M (19) and profit after tax amounted to SEK 11 M (15). Investments in the Parent Company during the quarter amounted to SEK 1 M (12). At the end of the period, cash and equivalents in the Parent Company amounted to SEK 97 M (14).

Net financial items for the first nine months amounted to SEK -230 M (10) mainly attributable to write-down of shares in group company of SEK -234 M, which was carried out in the second quarter. Profit before tax amounted to SEK -224 M (62) and profit after tax amounted to SEK -226 M (49). Investments in the Parent Company amounted to SEK 17 M (49).