BHG Group (BHG) investor relations material

Executive summary

• Achieved 10.2% net sales growth in Q2 2026, with organic growth of 9.6% and improved profitability for the 11th consecutive quarter.

• Strategic initiatives included the acquisition of Hillerstorp, expansion of unique assortment, and accelerated AI-driven solutions to enhance customer experience and efficiency.

• Growth was driven by strong performance in the garden, furniture, and home furnishings categories, especially in Sweden, Norway, Germany, and Eastern Europe.

• Maintained operational focus on customer experience, assortment, and efficiency to build business resilience.

• Leverage ratio reduced to 2.03x from 3.02x year-over-year, reflecting disciplined execution and improved financial position.

Financial highlights

• Q2 net sales: SEK 3,025.2 million (up 10.2% year-over-year); organic growth 9.6%.

• Q2 adjusted EBIT: SEK 134.3 million (margin 4.4%), up SEK 16 million year-over-year.

• Q2 gross profit: SEK 754.0 million (gross margin 24.9%).

• Operating cash flow reached SEK 338.6 million, with liquidity rising to SEK 564.7 million.

• Net debt at period end: SEK 935.3 million; unutilized credit facilities of SEK 800 million.

Outlook and guidance

• Positive outlook for 2026, expecting continued profitable growth as consumer financial positions improve and online retail penetration increases.

• Strategic focus remains on organic growth, unique assortment, AI, and disciplined bolt-on acquisitions.

• Anticipates lower impact from low-margin garden category in H2, with bathroom category expected to recover.

• Financial targets: 10-15% annual net sales growth, adjusted EBIT margin of 5% short-term and 7% medium-term, net debt/EBITDA below 2x.

• Freight costs have increased but remain reasonable; FX and freight impact timing is uncertain.