BE Group Year-end report 2024

Report this content

Fourth quarter

  • Net sales decreased by 12% to SEK 1,033 M (1,177)
  • The underlying operating result amounted to SEK -15 M (-17)
  • The quarter was affected by items affecting comparability of SEK -28 M (-) related to closure of the unit in Poland
  • The operating result amounted to SEK -69 M (-37), including inventory losses of SEK -26 M (-20)
  • Result after tax amounted to SEK -57 M (-34)
  • Cash flow from operating activities amounted to SEK 53 M (150)
  • The closure of the Baltic unit was completed during the quarter
  • Earnings per share amounted to SEK -4.36 (-2.58)
  • The Board of Directors proposes that no dividend will be paid for the financial year of 2024

Statement from the CEO
Net sales in the fourth quarter decreased by 12 percent to SEK 1,033 M (1,177) in a descending order attributable to the closure of the Baltic unit, lower material prices and lower demand from OEM customers linked to the automotive industry and a continued weak construction sector. The underlying operating result was in line with the previous year and amounted to SEK -15 M (-17), corresponding to an underlying operating margin of -1.5% (-1.4). For the full year, net sales decreased by 12 percent to SEK 4,667 M (5,328) and the underlying operating result improved to SEK 51 M (30), corresponding to an underlying operating margin of 1.1 percent (0.6). Inventory losses amounted to SEK -26 M (20) for the quarter and SEK -53 M (76) for the full year. Cash flow from operating activities was positive for the quarter, SEK 53 M (150), as well as for the full year, SEK 105 M (491).

The relocation of the Polish operations to Sweden and Finland announced at the end of November is proceeding according to plan and impacts the operating result negatively by SEK 28 M, which is somewhat lower than previously communicated. The closure of the Polish unit is estimated to have an ongoing positive effect with a payback period of less than one year. The closure of the Baltic unit has been proceeding according to plan and the shares in the company were divested at the end of the quarter.

The joint venture ArcelorMittal BE Group SSC AB provided a better quarterly result than the previous year, although it was somewhat lower for the full year but, as a whole, the company exceeded its underlying operating result target.

Outlook
A year ago, I wrote, “after close to 20 months of continuous drops in material prices, the price level must be stabilized for margins to return to reasonable levels.” In 2024, BE Group’s average sales price decreased by another 8 percent. Right now, the situation is a little “wait and see”. In December, analyst firms predicted relatively large spot price increases until May, but the fact that there has been no inventory build-up among large European warehousers has conceivably updended this. Instead, a smaller price increase or stable prices until Q2 are more likely.

A number of days into January, the sales rate in tons per trading day is in line with the previous year, but gross margins are still pressured. We are pleased to see an improvement within the construction sector while the industry, which decreased quite clearly at the end of the previous year, is expected to remain under pressure.

Our focus
Our most important focus is to maintain momentum in our strategic efforts to continue improving earnings. Given the structural changes initiated and implemented in 2024, with all else being equal, 2025 is expected to be better.

Peter Andersson, President and CEO

For further information, please contact:
Peter Andersson, President and CEO
Tel: +46 706 53 76 55, email: peter.andersson@begroup.com

Christoffer Franzén, CFO
Tel: +46 705 46 90 05, email: christoffer.franzen@begroup.com

This information is information that BE Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2:00 p.m. CET on January 28, 2025.

BE Group AB (publ), which is listed on the Nasdaq Stockholm exchange, is a leading independent steel distributor that stores and processes steel, stainless steel, and aluminium for customers primarily in the construction and manufacturing industries. Through the company’s production services, customers can order customized steel components to optimize their production processes. In 2024, the Group reported sales of SEK 4.7 billion. BE Group has approximately 640 employees, with Sweden and Finland as its largest markets. The headquarters is located in Malmö, Sweden. Read more about BE Group at www.begroup.com.

Tags: