BE Group (BEGR) Q2 2024 earnings summary

Executive summary

• Net sales declined 10% year-over-year in Q2 2024 to SEK 1,272 M, mainly due to lower market prices, despite a 6% increase in tonnage in Sweden and Finland.

• Operating result for Q2 was SEK 11 M (26), with inventory losses of SEK -7 M; result after tax was SEK 1 M (19).

• For H1 2024, net sales fell 13% to SEK 2,577 M, with an underlying operating result up to SEK 60 M (43), but operating result at SEK 15 M (27) after SEK -27 M in Baltic closure costs.

• Cash flow from operating activities was SEK 21 M in Q2 and SEK 65 M for H1, both significantly lower than prior year.

Financial highlights

• Q2 gross profit was SEK 152 M (172), gross margin 12.0% (12.3%).

• Underlying operating margin in Q2 was 1.4% (2.4%), and 2.3% (1.5%) for H1.

• Earnings per share in Q2 was SEK 0.13 (1.47); for H1, SEK -0.21 (1.25).

• Net debt (excl. IFRS 16) at period end was SEK 289 M (203), with a net debt/equity ratio of 20.1% (13.2%).

• Working capital tied-up decreased to 13.4% (15.3%) in Q2.

Outlook and guidance

• Industrial sector activity expected to remain stable; Finnish market recovering after political strikes.

• Construction sector remains weak and is expected to stay at low levels, representing about 20% of main market sales.

• Sheet metal prices under pressure, but spot price increase anticipated in autumn as inventories are replenished.