BE Group (BEGR) investor relations material

Executive summary

• Q3 net sales rose 13% to SEK 974 M; underlying operating result (uEBIT) improved to SEK 4 M from SEK -23 M, and reported EBIT was SEK 4 M versus SEK -30 M.

• 9M net sales rose 1% to SEK 3,052 M; uEBIT improved to SEK 10 M from SEK -61 M, reported EBIT was SEK 32 M versus SEK -534 M, and profit after tax was SEK 19 M versus SEK -501 M.

Financial highlights

• Q3 sales growth comprised 9% higher tonnage and 4% positive price and mix effects; gross profit reached SEK 126 M versus SEK 89 M.

• 9M gross profit increased to SEK 412 M from SEK 315 M; delivered tonnage was in line with the prior year.

• Q3 cash flow from operating activities was SEK 24 M versus SEK 48 M; 9M cash flow increased to SEK 32 M from SEK 7 M.

• Q3 EPS was SEK -0.01 versus SEK -1.95; 9M EPS was SEK 0.96 versus SEK -36.64.

Outlook and guidance

• Q4 Nordic steel demand expected to improve slowly; manufacturing outlook is positive, while construction activity is expected to rely mainly on industrial and infrastructure projects.

• Residential construction expected to remain subdued; steel prices expected to remain stable or rise slightly, supported by producer and energy costs and more limited supply in some product areas.

• Priorities include margin improvement, focused sales in selected segments, higher productivity and strict capital discipline.