First quarter
- Net sales decreased by 15% to SEK 1,105 M (1,305)
- The underlying operating result amounted to SEK -2 M (42)
- The operating result amounted to SEK -12 M (4), including inventory losses of SEK -10 M (-11)
- Result after tax amounted to SEK -14 M (-4)
- Cash flow from operating activities amounted to SEK -37 M (44)
- Earnings per share amounted to SEK -1.08 (-0.35)
Statement from the CEO
Net sales in the first quarter decreased by 15 percent to SEK 1,105 M (1,305) attributable to a shift in demand, where the construction segment increased and the industrial segment declined, combined with lower material prices and the closure of the Baltic operations that began at the end of the first quarter of the previous year. In the Finnish part of the company, sales were also negatively impacted by somewhat lower efficiency in connection with the transition to a new business system and the number of trading days was affected negatively by a three day strike in February. The decrease in sales combined with pressured margins generated an underlying operating margin of -0.2% (3.2%). Inventory losses amounted to SEK -10 M (-11).
The transfer of the Polish operations to Sweden and Finland, which was announced in the previous quarter, has progressed according to plan and is expected to be completed in the second quarter.
Outlook
Demand gradually increased during the quarter and, in the short term, the market situation is expected to be relatively favorable. Spot prices for steel have risen into the second quarter and many steel producers have high capacity utilisation into the third quarter. Given the surrounding world in general and what is or is not happening, particularly in the US, there is great uncertainty and how this may affect future quarters and the full year of 2025 is impossible to quantify.
Our focus
In a storm, it's important to have a good footing and keep your wits about you. A lot of steel is needed even in bad times and as usual it is important to secure as many deals as possible at healthy margins. At the same time, we are working to adapt our organization, costs and working capital.
A rationalization program is being developed, which is expected to lower costs by about SEK 20 M in 2025 and with a full-year effect of about SEK 50 M in 2026.
The transition to a new business system in Finland has initially led to slightly lower efficiency, although in the long term it is expected to contribute to greater efficiency primarily through increased digitalization.
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. The information was submitted for publication, through the agency of the contact persons set out above, at 11:00 a.m. CEST on April 23, 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.
