Be Group Ab · OMXSTO:BEGR
Be Group Ab — Q1 2019 Earnings Presentation
23 slides from Be Group Ab's earnings presentation, Apr 26, 2019
Slide 1: BE Group Interim Report January–March 2019
BE GROUP, INTERIM REPORT JANUARY – MARCH 2019 April 26th, 2019 Anders Martinsson, President and CEO Daniel Fäldt, CFO
Slide 2: Agenda
Agenda Q1 Overview Financials in Detail Business Areas - Status Outlook Q&A
Slide 3: Financial highlights – Q1 2019
Financial highlights – Q1 2019 Net sales amounted to SEK 1,205 M (1,226). The underlying operating result amounted to SEK 40 M (48). The operating result amounted to SEK 34 M (55), including inventory losses of SEK -6 M (7). Result after tax amounted to SEK 20 M (39). Cash flow from operat
Slide 4: Business development – Q1 2019
Business development – Q1 2019 Demand in the next quarters is expected to remain strong in our main markets Steel prices anticipated to remain on Q1 levels and prices on aluminum and stainless are expected to recover after Q1 decline. Business area Sweden & Poland The production units continue
Slide 5: Financials in Detail
FINANCIALS IN DETAIL
Slide 6: Sales – Marginal impact of tonnage decline and price/mix effects
Sales – Marginal impact of tonnage decline and price/mix effects Q1 Growth in tonnage and sales (%) Change in Net Sales -2% 20% Tonnage -2% 15% Price/Mix -2% 10% 8% Currency +2% 5% 5% 4% 3% 1% 0% 0% -5% -2% -5% Q1 -10% -10% Change in tonnage -2% -15% Sweden & Poland +2% Q1 17 Q2 17 Q3 17 Q4
Slide 7: Gross Profit – Inventory losses and channel mix
Gross Profit – Inventory losses and channel mix Gross profit below last year SEK 166 M Gross Profit (SEK M and %) (187). Mainly driven by inventory losses 200 187 179 20% 174 of -6 M (7) 180 159 166 19% 160 152 151 152 18% Gross margin 13.8% (15.3) and 140 134 17% underlying margin 14.2% (14.7)
Slide 8: Quarterly comparison to last year
Quarterly comparison to last year SEK M Q1 Q2 Q3 Q4 FY Net sales 2018 1 226 1 312 1 111 1 154 4 803 Change BA Sweden & Poland -8 Change BA Finland & Baltics 0 Change Other -13 Net sales 2019 1 205 Change -2% Operating result 2018 55 22 33 22 132 Inventory gains (-)/ losses (+) -7 -12 -7 -1 -27 Items
Slide 9: Working capital – In line with previous quarter
Working capital – In line with previous quarter Working capital (SEK M) Q1 working capital improved for the second 650 30% quarter in a row 617 550 617 588 575 25% Stock levels remain on same level as Q4 502 554 572 568 450 480 492 20% Average working capital tied-up increased 350 15% to 11.8%
Slide 10: Operating cash flow – Continued improvement
Operating cash flow – Continued improvement Operating cash flow (SEK M) Operating cash flow of SEK 62 M (-1), of which 130 150 SEK 20 M is an effect of IFRS 16 110 implementation. 110 90 97 R12 SEK 149 M of which SEK 20 M is an 70 80 effect IFRS 16 implementation 50 62 70 Net debt reduced to 4
Slide 11: Financial Summary
Financial Summary Q1 Q1 SEK M 2019 2018 Change Net sales 1 205 1 226 -21 Underlying EBIT 40 48 -8 % of Sales 3.3% 3.9% -0.6% Inventory gains/losses -6 7 -13 Items affecting comparability - - - EBIT 34 55 -21 % of Sales 2.8% 4.5% -1.7% Financial net -6 -4 -2 Earnings before tax 28 51 -23 Net earnings
Slide 12: Business Areas - Status Q1 2019
BUSINESS AREAS - STATUS Q1 2019
Slide 13: BA Sweden & Poland – Strong development in Production units
BA Sweden & Poland – Strong development in Production units Tonnage up 2% vs Q1 2018 uEBIT (SEK M) and sales growth (%) Net sales down 1%, and amounted to SEK 643 35 35 30% 30 33 25% M (651) 25 27 26 20% uEBIT of SEK 33 M (35) mainly due to mix 20 15% 20 effects impacting uGM% 15 16 15 10% 10
Slide 14: BA Finland & Baltics – Distribution unit in line with last year
BA Finland & Baltics – Distribution unit in line with last year Tonnage down 6% vs last year uEBIT (SEK M) and sales growth (%) Net sales in line with last year and 35 30% 30 25% amounted to SEK 565 M (565) due to 25 higher steel prices and mix effects 20 26 23 26 20% 22 15% uEBIT of SEK 20 M
Slide 15: Outlook
OUTLOOK BE GROUP
Slide 16: Business Outlook
Business Outlook Demand in the next quarter is expected to remain strong in the company’s main markets Steel prices anticipated to remain on the same level as those seen in the first quarter and prices on aluminum and stainless are expected to recover after the first quarter’s decline Stable m
Slide 17: Summary and conclusions
Summary and conclusions Cash flow from operating activities increased to SEK 62 M (-1) Underlying operating result amounted to SEK 40 M (48) Balance sheet keeps improving with net debt, excluding IFRS 16, at SEK 418 M (504) and net debt/equity ratio at 45% (59%) Continued good market conditi
Slide 18: Q&A
Q&A www.begroup.com
Slide 19: Thank you!
THANK YOU! For your time and interest www.begroup.com
Slide 20: Appendix – Financial Information
APPENDIX – FINANCIAL INFORMATION
Slide 21: Description of segments
Description of segments BA Sweden & Poland; BE Group Sweden, Lecor Stålteknik and BE Group Poland BA Finland & Baltics; BE Group Finland, BE Group Estonia, BE Group Latvia and BE Group Lithuania Parent Company and consolidated items; BE Group AB, Group eliminations and Operations under restruc
Slide 22: Appendix: Tonnage development
Appendix: Tonnage development Tonnage (‘000 tons) 20% 140 15% 120 10% 100 98 98 102 94 93 96 5% 80 89 82 84 60 0% 40 -5% 20 -10% 0 -15% Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Tonnage Tonnage growth, %
Slide 23: Balance sheet
Balance sheet Mar Mar SEK M 2019 2018 Change Non-current assets 1 369 865 +504 Inventories 657 682 -25 Accounts receivable 624 664 -40 Other receivables 43 45 -2 Cash 137 39 +98 Total assets 2 830 2 295 +535 Equity 922 852 +70 Interest bearing liabilities 549 537 +12 Leasing liabilities 546 - +546 A