Bhg Group Ab · OMXSTO:BHG
Bhg Group Ab — Q3 2024 Earnings Presentation
12 slides from Bhg Group Ab's earnings presentation, Oct 24, 2024
Slide 1: Q3 Report 2024
Today’s presenters Gustaf Öhrn, CEO Jesper Flemme, CFO Q3 REPORT 2024 24 October 2024 1
Slide 2: Q3 2024 – Improved sales development and EBIT
Q3 2024 – Improved sales development and EBIT SALES EARNINGS CASH FLOW Cash flow from operating Net Sales (SEK) Adj. EBIT(SEK) activities (SEK) 52.5m 2,354m (+40.0 vs. LY) 103.3m Total: -17.7% 2.2% 65.6% Organic: -9.8% (+1.8 p.p. vs. LY) Growth EBIT-margin Cash conversion • Market remains challengin
Slide 3: Key macro factors have continued to improve
Key macro factors have continued to improve Projected to reach 2.0% Policy rate (Sweden) 2025* Interest rates have continued down and are 5,0% 4,0% projected to decrease further 2025 3,0% 2,0% Intention to renovate now close to average Q1 1,0% 0,0% 2019 – Q2 2024 jan mar may jul sep nov jan mar may
Slide 4: Execution of our focus areas continues
Execution of our focus areas continues Home Improvement Value Home Premium Living Product range expansion primarily Growth within our dropship-based Increase share of entry-price Focus on geographic expansion. businesses combined with assortment and strengthen International markets have geographic e
Slide 5: Fourth consecutive quarter with improved profitability YoY
Fourth consecutive quarter with improved profitability YoY Improvements in our margin-structure, driven by Accumulated Adj. EBIT increased efficiency and cost reductions, have improvement amounts to allowed us to improve profitability year over year 133m YoY last four quarters! 133,1 for four consec
Slide 6: Improved sales trend during the quarter
Improved sales trend during the quarter BHG Group Home Improvement Value Home Premium Living Nordics: Nordics: Nordics: Nordics: -16% vs. LY -11% vs. LY -39% vs. LY 3% vs. LY Europe: Europe: 20% vs. LY 13% vs. LY Europe: Europe: 2,354m 1,265m 622m 479m -37% vs. LY -24% vs. LY RoW: RoW: -2% vs. LY 2%
Slide 7: We continued to increase profitability compared to 2023
We continued to increase profitability compared to 2023 BHG Group Home Improvement Value Home Premium Living 52.5m 37.7m 24.8m 3.4m +40.0 vs. LY +10.5m vs. LY 15.4m +28.4m vs. LY 6.5m -1.1m vs. LY 2.2% 3.0% 4.0% +34.4m 0.7% -5.4m +1.8 p.p. vs. LY +1.1 p.p. vs. LY +4.3 p.p. vs. LY -0.3 p.p. vs. LY Fo
Slide 8: EBIT margin bridge 2023 Q3 to 2024 Q3
EBIT margin bridge 2023 Q3 2024 Q3 The weaker Gross Margin was primarily driven by Premium Adj. EBIT margin Q3 '23 0,4% Living and was mainly attributed to a mix shift towards furniture with lower product margins which in turn affects Product margin Gross Margin negatively due to the segments stro
Slide 9: Solid cash flow
Solid cash flow Working capital deviates to a certain degree from BHG's seasonal Stable development in liquidity pattern due to caution regarding Black Friday inventory Jul-Sep 2024 (SEKm) SEKm 320.2 (56.8) 20.1 103,3 (367.2) 99,2 (15.9) 370,3 266,6 EBITDA and Income tax paid Change in working Cash
Slide 10: Leverage
Leverage Net debt Interest-bearing liabilities & Cash 1,233.4m = 3 500 4.56x 3 000 EBITDAaL LTM 270.7m 2 500 2 000 Improved profitability key to drive 1 500 deleveraging going forward 1 000 Total facilities reduced from SEK 3.3bn to SEK 2.3bn, where of SEK 0.8bn unutilised 500 Acquisition related li
Slide 11: Summary
Summary Positive signs of macro indicators improving demand – we estimate that the market will remain challenging throughout 2024 with gradual improvements first half of 2025 Our focus remains profitability through our key focus areas Growth through product expansion, increased price competitiveness
Slide 12: Q&A
Q&A 12