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 2018.

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 fourth quarter of the Parent Company, BE Group AB (publ), amounted to SEK 15 M (29) during the period and derived from intra-Group services. These intra-Group services mainly include licensing fees regarding the subsidiaries’ use of the BE Group brand and central expenses for IT, Finance and Purchasing, etc. 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. Out of the total costs for the Parent Company, of SEK -13 M (-17), SEK -7 M (-11) was allocated to the subsidiaries. Operating result amounted to SEK 2 M (11). For the full year, net sales amounted to SEK 97 M (108) and the operating result to SEK 44 M (50).

Net financial items for the quarter amounted to SEK 7 M (-5) mainly due to positive currency effects related to revaluation of loan in EUR. Profit before tax amounted to SEK 9 M (39) and profit after tax amounted to SEK 5 M (29). Investments in the Parent Company amounted to SEK 0 M (1). At the end of the period, cash and equivalents in the Parent Company increased to SEK 145 M (71).

Net financial items during the year amounted to SEK -3 M (2). Profit before tax amounted to SEK 48 M (85) and profit after tax was SEK 38 M (69). Investments in the Parent Company amounted to SEK 0 M (1).

Group

Net financial items and tax

The Group´s consolidated net financial items in the fourth quarter amounted to SEK 5 M (-5) mainly due to positive currency effects related to revaluation of loan in EUR. Net interest accounted for SEK -6 M (-3). During the quarter, interest expenses related to leasing according to IFRS 16 amounted to SEK -3 M (-). Net financial items for the full year amounted to SEK -16 M (-16) and net interest was SEK -22 M (-12) of which SEK -11 M is related to leasing according to IFRS 16.

Taxes for the fourth quarter amounted to SEK -6 M (-6). Profit after tax amounted to SEK 7 M (11) and amounted to SEK 50 M (80) for the full year including items affecting comparability of SEK 0 M (-12).

Cash flow

The Group´s consolidated working capital amounted to SEK 549 M (572) at the end of the period and the average working capital tied-up for the fourth quarter was 14.7 percent (12.9). Cash flow from operating activities amounted to SEK 85 M (80) during the quarter, of which SEK 20 M is an effect of the implementation of IFRS 16 and to SEK 200 M (86) for the full year, of which SEK 78 M is an effect of the implementation of IFRS 16. Cash flow from investing activities amounted to SEK -16 M (-10) for the fourth quarter and SEK -37 M (-32) for the full year. Cash flow after investments thus amounted to SEK 69 M (70) during the fourth quarter and SEK 163 M (54) for the full year.

Financial position and liquidity

At the end of the period, consolidated cash and cash equivalents, including overdraft facilities, amounted to SEK 318 M (208) and the interest-bearing net debt excl. IFRS 16 was SEK 373 M (440). Equity amounted to SEK 922 M (892) at the end of the period and the net debt/equity ratio amounted to 40 percent (49).

Organization, structure and employees

The number of employees decreased to 639 compared to 667 at the same time last year. The decrease is mainly due to the restructuring implemented last year. The average number of employees during the year amounted to 652 (668).

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