BHG Group (BHG) Q4 2024 earnings summary

Executive summary

• Achieved sales growth in Q4 2024, reversing a prolonged decline, with improved profitability for the fifth consecutive quarter and adjusted EBIT nearly doubling to SEK 106.7 million.

• Strong cash flow of SEK 337 million and cash conversion of 150%, supported by cost reductions, inventory optimization, and robust Black Friday sales.

• Major restructuring phase nearly complete, including consolidation into fewer, larger platforms and significant cost reductions, positioning for scalable growth.

• Entering a new phase focused on profitable growth, aiming to return to pre-pandemic EBIT margin levels of 5% and ultimately 7%.

• Well positioned for 2025, with priorities on market share growth, cost discipline, and customer satisfaction.

Financial highlights

• Q4 2024 net sales increased 1.9% to SEK 2,884 million; organic growth was 0.5% year-over-year.

• Adjusted EBIT for Q4 rose to SEK 106.7 million (3.7% margin), up from SEK 52.0 million (1.9%).

• Premium Living segment delivered an EBIT margin of 7.1%; Home Improvement improved EBIT by SEK 42 million, reaching a 4.0% margin.

• Cash flow from operating activities was SEK 336.9 million; liquidity at period end was SEK 473 million.

• Net debt at quarter end was SEK 1,027 million; net debt/EBITDA at 3.33x.

Outlook and guidance

• Gradual market recovery expected in 2025, especially in Sweden, with positive macro trends such as lower interest rates and stabilised inflation.

• Market remains challenging but is in recovery, with improving consumer confidence and demand.

• 5% EBIT margin target seen as a stretch for 2025; no defined timeline but expected within a reasonable timeframe.

• Focus for 2025 is on maintaining cost discipline, leveraging cost reductions as volumes grow, and further improving customer satisfaction.

• Board proposes no dividend for 2024.