BHG Group (BHG) Q4 2024 earnings summary

Executive summary

• Achieved a return to sales growth in Q4 2024 after a prolonged period of decline, with improved profitability for the fifth consecutive quarter and significant cost reductions and platform consolidations.

• Successfully executed major restructuring, inventory optimization, and balance sheet improvements, positioning for scalable growth and market share gains.

• Entering a new phase focused on profitable growth, cost discipline, and customer satisfaction, with a clear roadmap for 2025.

Financial highlights

• Q4 2024 net sales increased 1.9% to SEK 2,884m, with organic growth of 0.5% year-over-year.

• Adjusted EBIT for Q4 was SEK 106.7m (3.7% margin), nearly doubling year-over-year.

• Cash flow from operating activities was SEK 336.9m, with a 150% cash conversion rate.

• Net debt at year-end was SEK 1,027m; net debt/adjusted EBITDA at 3.33x.

• Liquidity at hand was SEK 473m, with SEK 800m in unutilized credit facilities.

Outlook and guidance

• Gradual market recovery expected in 2025, led by Sweden, with other markets lagging but improving.

• 5% EBIT margin target remains a stretch for 2025; improvement expected over a longer timeframe.

• Focus for 2025 is on growing faster than the market, maintaining cost levels, and leveraging cost reductions for profitability.

• Board proposes no dividend for 2024.