BHG Group (BHG) Q1 2025 earnings summary

Executive summary

• Net sales grew 9.7% year-over-year to SEK 2,204 million, with organic growth of 8.2%, and all three business units contributing to the second consecutive quarter of organic growth and improved profitability.

• Adjusted EBIT improved to SEK 21.2 million from a small loss last year, with all business units showing earnings growth and net profit reaching SEK 29.5 million compared to a loss of SEK -65.6 million.

• Sweden was the main growth driver, with strong sales also in Norway and Germany.

• Strategic focus shifted from restructuring to a new phase of profitable growth, emphasizing market share, cost control, and efficiency measures.

• The company completed the sale of IP-Agency, resolving a major dispute and strengthening liquidity.

Financial highlights

• Net sales reached SEK 2,204 million (up 9.7% year-over-year); organic growth 8.2%.

• Adjusted EBIT reached SEK 21.2 million, corresponding to a 1.0% EBIT margin, a SEK 22 million improvement over last year.

• Cash flow from operating activities was -SEK 103.1 million, mainly due to seasonal inventory build-up.

• Net debt at quarter end was SEK 1,282.3 million; net debt/Adjusted EBITDA at 3.92x.

• Liquidity at period end was SEK 418 million, with unutilized credit facilities of SEK 600 million.

Outlook and guidance

• Gradual market recovery expected in 2025, led by Sweden, though uncertainty has increased due to geopolitical and financial unrest, US tariff policy, and declining consumer confidence.

• Housing transactions, government subventions, and tax cuts in Sweden are likely to support demand.

• Tactical priorities include increasing market share, maintaining cost discipline, and improving customer satisfaction.

• Management is confident in entering the profitable growth phase but remains cautious due to heightened market uncertainty.

• Long-term targets: organic growth above the addressable market, adjusted EBIT margin to return to 5% and improve to 7% over time, and net debt/EBITDA below 2.5x.