BE Group (BEGR) Q3 2024 earnings summary

Executive summary

• Net sales fell 11% in Q3 2024 to SEK 1,057 M, mainly due to lower prices and Baltic unit closure; underlying operating result improved to SEK 6 M from SEK 4 M.

• Result after tax rose to SEK 18 M in Q3 (from -42 M), with positive impact from Baltic unit closure; gross margin improved to 11.1% (8.3%).

• For the first nine months, net sales decreased 12% to SEK 3,634 M, but underlying operating result increased to SEK 66 M (47 M); result after tax was SEK 15 M (-26 M).

• Tonnage in main markets (Sweden, Finland) increased 4% in Q3, and 9% excluding rebar; construction sector demand remained weak.

Financial highlights

• Q3 operating result was SEK 5 M (from -42 M), including inventory losses of SEK -9 M and SEK 8 M in positive items affecting comparability.

• Earnings per share in Q3 rose to SEK 1.36 (-3.27); for nine months, SEK 1.15 (-2.02).

• Cash flow from operating activities was SEK -13 M in Q3 and SEK 52 M for nine months (down from SEK 341 M).

• Gross profit in Q3 increased to SEK 118 M (99 M); gross margin improved to 11.1% (8.3%).

Outlook and guidance

• Q4 demand expected to be similar to Q3; market recovery in 2025 seen as uncertain, with construction sector still weak and automotive sector cutting back.

• Long products may see improvement as interest rates fall and construction projects resume, with potential shortages in the sector in late 2025.