Comments on the report
Fourth quarter
Consolidated net sales for the period decreased by 11 percent compared to last year, amounting to SEK 875 M (984). The decrease is explained by price and mix effects of 8 percent, negative currency effects of 2 percent and slightly lower tonnage. Volume decreased sharply in the second and third quarters both in the manufacturing and construction sectors, mainly as a result of Covid-19. In the fourth quarter, the market recovered, mainly in the manufacturing industry, and the quarter ended strongly.
Gross profit amounted to SEK 135 M (138), with a stronger gross margin compared to last year of 15.5 percent (14.0). The operating result increased to SEK 18 M (8), corresponding to an operating margin of 2.1 percent (0.8). Adjusted for inventory gains and losses of SEK 6 M (-1), the underlying operating result increased to SEK 12 M (9). The underlying operating margin during the period increased to 1.4 percent (0.9).
Full-year 2020
During the year, consolidated net sales decreased by 16 percent compared to last year amounting to SEK 3,672 M (4,359). Tonnage in business area Sweden & Poland decreased by 14 percent compared to last year, while Finland & Baltics delivered 5 percent less. Net sales were negatively impacted by price and mix effects of 5 percent and currency effects of 1 percent. The period was also affected by inventory losses of SEK -17 M (-6).
Gross profit amounted to SEK 548 M (605) with a gross margin of 14.9 percent (13.9). Adjusted for inventory gains and losses gross margin increased to 15.3 percent (14.0).
The operating result amounted to SEK 39 M (88), corresponding to an operating margin of 1.1 percent (2.0). Sales and administration expenses were SEK 36 M or 7 percent lower than last year. Adjusted for inventory gains and losses of SEK -17 M (-6) and items affecting comparability of SEK -40 M (-), the underlying operating result increased to SEK 96 M (94). The underlying operating margin for the period increased to 2.6 percent (2.1).
Covid-19 summary
The full scope and duration of the on-going pandemic are not yet known, which means, as previously reported, that it is not possible to fully quantify its future impact on BE Group. The uncertain market situation has led BE Group to take several measures necessary to mitigate the effects of Covid-19. This primarily concerned the operations in Sweden and the company made use of Government grants, such as the introduction of short-term lay-offs, for example. Government grants linked to Covid-19 contributed around SEK 3 M during the fourth quarter and around SEK 10 M during the year. These grants are recognized as cost-reductions of the items the grants pertains to. As a precautionary measure, the company has also applied for and been granted a deferral of tax payments of approximately SEK 30 M during the year. All of the companies in the Group focus extensively on cost control, savings and efficiency enhancements and report developments to Group Management weekly.
Net sales were, primarily in the second and third quarters, negatively impacted by Covid-19, but some recovery took place in the fourth quarter.
BE Group is monitoring the development closely and is prepared to take further steps to reduce the negative impact on the business. The company acts in accordance with decisions and recommendations from governments and authorities in the respective markets and with the health and well-being of its employees as a top priority.
The comparative figures for 2018 are prepared according to previous accounting principles regarding leasing (IAS 17).