– Through structural changes in line with our strategy and operational improvements, we have generated SEK 1.2 billion in cash flow from operating activities to date this year.

“In the third quarter, we continued to deliver on our communicated strategy to strengthen the Group’s competitiveness, and our assessment is that we have gained market shares. We lowered our costs, continued to reduce our inventory, significantly improved our balance sheet and streamlined our operations through consolidations and divestments. Having fewer, clearer platforms will make us more cost-efficient, while also honing our customer offering and achieving larger economies of scale.” says Gustaf Öhrn, President and CEO.

Highlights
1 July – 30 September

  • Net sales declined -7.9% to SEK 2,861.9 million (3,106.7). Organic growth was -7.5% and pro-forma organic growth was -7.5%
  • Adjusted gross profit declined -7.9% to SEK 687.2 million (746.0), corresponding to an adjusted gross margin of 24.0% (24.0)
  • Adjusted EBIT amounted to SEK 12.5 million (47.8), corresponding to an adjusted EBIT margin of 0.4% (1.5)
  • Cash flow from operating activities amounted to SEK 223.7 million (-133.0)
  • Earnings per share amounted to SEK -7.30 (-0.62) before dilution and SEK -7.30 (0.62) after dilution

1 January – 30 September

  • Net sales declined -11.5% to SEK 8,961.4 million (10,125.7). Organic growth was -11.2% and pro-forma organic growth was -11.2%
  • Adjusted gross profit declined -13.1% to SEK 2,226.7 million (2,563.4), corresponding to an adjusted gross margin of 24.8% (25.3)
  • Adjusted EBIT amounted to SEK 42.0 million (344.2), corresponding to an adjusted EBIT margin of 0.5% (3.4)
  • Cash flow from operating activities amounted to SEK 1,201.3 million (-173.1)
  • Earnings per share amounted to SEK -7.84 (1.61) before dilution and SEK -7.84 (1.61) after dilution

Key events during the first quarter and after the period

  • On 25 July, an extraordinary general meeting of BHG Group AB resolved, in accordance with a proposal by the Board of Directors, to approve the transfer of 20.1% of the shares in the subsidiary Furniture1 UAB (“F1”) to UAB Wechange, which is owned by the CEO of F1. After the transfer, BHG will hold 30.0% of the shares and votes in F1.
  • On 29 September, a broad restructuring programme in the Value Home segment was announced. The programme included an agreement to transfer AH-Trading GmbH to the company’s current minority owner and founder, an agreement to transfer the Danish operations of My Home Møbler A/S to the company’s founder, and the closure of several physical stores in other parts of the Value Home segment. The financial effects of the programme for the first nine months of the year include a pro-forma improvement in EBIT of SEK 59 million and a reduction in fixed costs of SEK 276 million. The programme lays a foundation for a long-term cost-efficient and scalable business. As a consequence, BHG Group will have a more focused structure with a lower share of offline retail.

CONFERENCE CALL IN CONNECTION WITH PUBLICATION OF THE INTERIM REPORT
Gustaf Öhrn, President and CEO, and Jesper Flemme, CFO, will hold a conference call at 10:00 a.m. on Thursday, 26 October in connection with the publication of the interim report.
The call will be held in English. Use the following link to participate in the webcast: https://ir.financialhearings.com/bhg-q3-report-2023. There will be an opportunity to ask questions in writing at the webcast. If you wish to ask questions verbally during the conference call, please register via the following link: https://conference.financialhearings.com/teleconference/?id=5007900. Once you have registered you will receive a telephone number and conference ID to log in to the conference. There will be an opportunity to ask questions verbally at the webcast.
The presentation will be available from the Group’s website: https://www.wearebhg.com/investors/presentations/.

INTERIM REPORTS ON WWW.WEAREBHG.COM
The full interim report for the period January-September 2023 and previous interim and year-end reports are available at https://www.wearebhg.com/investors/financial-reports/

This information is information that BHG 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 2023-10-26 07:00 CEST.

Attachments

Bhg Interim Report Q3 January September 2023

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