BE Group (BEGR) Q4 2024 earnings summary

Executive summary

• Net sales for 2024 decreased by 12% to SEK 4,667 M year-over-year, mainly due to lower material prices, weak demand in construction and automotive sectors, and the closure of the Baltic and Polish units.

• Underlying operating result improved to SEK 51 M from SEK 30 M, while reported operating result was SEK -49 M, impacted by SEK -47 M in restructuring costs and SEK -53 M in inventory losses.

• Result after tax was SEK -42 M, an improvement from SEK -60 M last year; earnings per share were SEK -3.21.

• Cash flow from operating activities was SEK 105 M, down from SEK 491 M in 2023.

• The Board proposes no dividend for 2024.

Financial highlights

• Q4 net sales fell 12% to SEK 1,033 M; full-year net sales also down 12%.

• Q4 operating result was SEK -69 M (including SEK -28 M in closure costs and SEK -26 M in inventory losses); underlying Q4 operating result was SEK -15 M.

• Gross margin for the year increased to 11.1% from 10.2%, but Q4 gross margin dropped to 8.0%.

• Net debt (excl. IFRS 16) rose to SEK 340 M from SEK 259 M; net debt/equity ratio increased to 24.4%.

• Return on capital employed was -2.9% for the year.

Outlook and guidance

• Structural changes are expected to yield a better 2025, with closures in Poland and the Baltics anticipated to have a positive effect and payback within a year.

• Market remains pressured by low steel prices and weak demand, especially in industry; some improvement seen in construction.

• Stable or slightly increasing steel prices expected into Q2 2025, but gross margins remain under pressure.