BHG Group (BHG) Q2 2025 earnings summary

Executive summary

• Achieved 5.4% organic growth in Q2 2025, with all business units contributing and market share gains.

• Profitability improved for the seventh consecutive quarter, with Q2 adjusted EBIT up 19% year-over-year.

• Cash flow from operating activities was strong at SEK 363.2 million, reflecting EBITDA growth and inventory optimization.

• Strategic restructuring and an asset-light, scalable online model position the company for further profitable growth.

Financial highlights

• Net sales for Q2 2025 increased by 1.1% to SEK 2,745 million, with organic growth of 5.4%.

• Adjusted EBIT reached SEK 118.3 million, with an EBIT margin of 4.3% (up from 3.6%).

• Value Home segment led with 9.7% organic growth and a 7.1% EBIT margin.

• Home Improvement segment posted SEK 77 million adjusted EBIT and a 5.2% margin.

• Cash conversion was robust at 169%, driven by inventory reduction and seasonal patterns.

Outlook and guidance

• Continued market recovery expected in 2025, especially in Sweden, Norway, and Germany, with Finland lagging.

• Focus remains on maintaining cost levels, driving top-line growth, and achieving a long-term 7% adjusted EBIT margin.

• No specific guidance on timing for reaching the 5% EBIT margin target, but commitment to ongoing improvement.

• Emphasis on organic growth above the addressable market and bolt-on acquisitions.