Bhg Group Ab · OMXSTO:BHG
Bhg Group Ab — Q4 2024 Earnings Presentation
17 slides from Bhg Group Ab's earnings presentation, Jan 29, 2025
Slide 1: Q4 Report 2024
Q4 REPORT 2024 Gustaf Öhrn, CEO Jesper Flemme, CFO 1
Slide 2: Q4 2024 – Growth and improved profitability
Q4 2024 – Growth and improved profitability SALES EARNINGS CASH FLOW Cash flow from operating Net Sales (SEK) Adj. EBIT(SEK) activities (SEK) 106.7m 2,884m (52.0 vs. LY) 336.9m Total: 1.9% 3.7% 150% Organic: 0.5% (+1.8 p.p. vs. LY) Growth EBIT-margin Cash conversion • Sales trend gradually improved
Slide 3: Market still challenging but macro trend continues to improve
Market still challenging but macro trend continues to improve Positive signs in Swedish macro indicators where the trend points towards an improving market. Our assessment is that Sweden(~50% of our sales) is ahead of other markets in terms of recovering demand Continued geo-political uncertainty ma
Slide 4: Statistics Sweden data gives indication of initiated recovery in our product categories in 2024
Statistics Sweden data gives indication of initiated recovery in our product categories in 2024 12 months rolling consumption Sweden, % 15% Gradual improvement during 2024 10% 5% 0% 2020M04 2020M09 2023M03 2023M08 2024M11 2019M01 2019M06 2021M02 2021M07 2022M05 2019M11 2021M12 2022M10 2024M01 2024M0
Slide 5: Positive organic growth – not seen since Q1 2022
Positive organic growth – not seen since Q1 2022 42% 36% 37% 32% Positive organic 22% growth after 10 20% quarters of 15% 14% detracting sales! 8% 9% 6% 2% 0,5% 1% -5% -4% -8% -9% -10% -11% -13% -14% -14% -17% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19 19 19 19 20 20
Slide 6: Growth in the quarter was driven by improved demand and geographic expansion
Growth in the quarter was driven by improved demand and geographic expansion Categories Geography Recovery in previously subdued, Return to growth in our largest capital-intensive categories such markets Sweden & Finland as Windows & Doors Home interior in the Premium Strong sales in Germany despite
Slide 7: We are pleased to conclude that we've done what we said we would do
We are pleased to conclude that we’ve done what we said we would do during 2023 & 2024 2023 & 2024 We’ve consolidated units into scalable platforms We’ve reduced fixed cost We’ve drastically reduced inventory levels and improved our balance sheet Phase 1 in finalization – structure in place and we’r
Slide 8: Clear roadmap for profitable growth
Clear roadmap for profitable growth Strategy continues as the second phase begins MARKET NORMALISATION First step – Return to a pre-pandemic adj. EBIT margin of 5% 7% IMPROVED EFFICIENCY Adj.EBIT 2024: 2.6% CREATING POWERHOUSES FROM CONSOLIDATION GROWTH INITIATIVES 0.8% Group wide agreements Categor
Slide 9: The journey continues with the same focus and hard work
The journey continues with the same focus and hard work 2025 and beyond Growth initiatives to increase our market share Cost control to ensure increased profits Customer first in everything we do
Slide 10: We have significantly reduced our cost base, inventory levels and interest-bearing liabilities
Financially: we have significantly reduced our cost base, inventory levels and int. bearing liabilities from the peak COST REDUCTION* INVENTORY REDUCTION** CASH FLOW*** INT. BEARING LIABILITIES FY 2024 vs. FY 2023 Q4 2024 vs. Peak Q2 2022 Q3 2022 to Q4 2024 REDUCTION Q4 2024 vs. Peak Q2 2022 SEK SEK
Slide 11: Growth driven by our actions and gradual market normalisation
Growth driven by our actions and gradual market normalisation BHG Group Home Improvement Value Home Premium Living Nordics: Nordics: Nordics: Nordics: Sweden: -61% vs. LY 33% vs. LY -6% vs. LY -1% vs. LY Sweden: -9% vs. LY Europe: Europe: 3% vs. LY 104% vs. LY 14% vs. LY Europe: Sweden: 11% vs. LY S
Slide 12: The fifth consecutive quarter with improved profitability
The fifth consecutive quarter with improved profitability BHG Group Home Improvement Value Home Premium Living 106.7m 54.2m 9.5m 62.3m 52.0 vs. LY 41.6 vs. LY 15.4m -12.1 vs. LY 6.5m 17.0 vs. LY 3.7% 4.0% 1.5% +34.4m 7.1% -5.4m + 1.8 vs. LY +3.1 p.p. vs. LY -1.6 p.p. vs. LY 1.3 p.p. vs. LY Substanti
Slide 13: EBIT margin bridge 2023 Q4 – 2024 Q4
EBIT margin bridge 2023 Q4 2024 Q4 EBIT margin in the quarter improved by 1.8 percentage Adj. EBIT margin Q4 '23 1,9% points compared to last year Product margin Lower product margin was primarily driven by a long Black Inventory handling Friday campaign period and negative currency effects Last-m
Slide 14: Solid Cash Flow
Solid Cash Flow Working capital in line with seasonal profile Stable development in liquidity Oct-Dec 2024 (SEKm) SEKm 144,2 336,9 657,2 (77,6) (476,8) 14,7 178,0 473,0 370,3 EBITDA and Income tax paid Change in working Cash flow from Q4 2023 CF from CF to CF to Q4 2024 Adjustments for items capital
Slide 15: Leverage
Leverage Net debt Interest-bearing liabilities & Cash 1,027.0m = 3 000 3.33x EBITDAaL LTM 2 500 308.1m 2 000 1 500 Improved profitability key to drive 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 liabilit
Slide 16: Summary
Summary Macro trend remains positive – primarily in Sweden which we asses is ahead of the curve in terms of recovery. We are optimistic but cautious about 2025 – a gradual recovery expected Sales trend improved during the year with growth in the fourth quarter – not seen since Q1 2022 The fifth cons
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