Bhg Group Ab · OMXSTO:BHG
Bhg Group Ab — Q1 2024 Earnings Presentation
17 slides from Bhg Group Ab's earnings presentation, Apr 25, 2024
Slide 1: Q1 Report 2024
Today’s presenters Gustaf Öhrn, CEO Jesper Flemme, CFO Q1 REPORT 2024 25 April 2024 1
Slide 2: Q1 2024 – Improved profitability in a continued challenging market
Q1 2024 – Improved profitability in a continued challenging market SALES EARNINGS CASH FLOW Adj. EBIT(SEK) Cash flow from operating Net Sales (SEK) activities (SEK) 2,009m -0.6m -111m Total: -23.3% +68.4m Organic: -13.9% vs. LY Growth • For the second consecutive quarter, we improved our profitabili
Slide 3: Forceful actions taken in 2023 have made us better positioned for 2024
Forceful actions taken in 2023 have made us better positioned for 2024 SG&A rollings 12 months, SEKm Inventory level, SEKm SEK -280m SEK -959m Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 On a rolling 12 months basis we have reduced SG&A by SEK 280m, whereof SEK 129m in Q1 2024 Our in
Slide 4: We expect the market to remain challenging during 2024
We expect the market to remain challenging during 2024 Intention to renovate within next 12 months (Sweden), Index Housing transactions in Sweden, thousands 70 Improvement 24% drop in 60 in Q1´24 vs. avg. volume 0 Q1 and Q4’23 Avg. Q2’20-Q2’22 -5 50 -10 Avg. Q3’22-Q1’24 40 -15 -20 30 -25 20 -30 Avg.
Slide 5: Our main priority for 2024 is to improve profitability
Our main priority for 2024 is to improve profitability CONSOLIDATION GROWTH INITIATIVES EFFICIENCY IMPROVED PROFITABILITY AND CUSTOMER VALUE 5
Slide 6: Several consolidations ongoing in our business units
Consolidation Several consolidations ongoing in our business units to increase economies of scale and improve customer value Home Improvement Value Home Premium Living • Create Nordic DIY- • Creating a scalable private • Integration of KitchenTime powerhouse led by label platform in Hemfint and Lamp
Slide 7: Acquisition and successful integration of KitchenTime
Consolidation Acquisition and successful integration of KitchenTime On 11 January, we announced the acquisition of the KitchenTime brand to strengthen our Premium segment further Within 3 months we launched 6 sites with 6 different languages – showing great speed and urgency to cater to new customer
Slide 8: Several initiatives across business units to improve efficiency
Efficiency We are executing several initiatives across our business units to improve efficiency Artificial Group wide Fulfilment intelligence agreements • Warehouse • Leverage AI to • Leverage the automation in support Customer Group’s size to Premium Living service in select negotiate group • Lever
Slide 9: Multiple initiatives for profitable growth identified and ongoing
Growth Initiatives Multiple initiatives for profitable growth identified and ongoing Examples of initiatives • Expand into new geographies Geographic Expansion • Primarily potential in Premium Living • Add new product categories Category Expansion • Mainly potential in Home Improvement through drop
Slide 10: Continuing cost-efficient growth through international expansion
We are continuing to develop cost-efficient growth through international expansion BHG Group Home Improvement Value Home Premium Living 2,009m 1,003m 511m 506m Total: -23.3% Total: -16.2% Total: -45.9% Total: +1.7% Organic: -13.9% Organic: -16.2% Organic: -17.6% Organic: -2.6% Nordics: Nordics: Nord
Slide 11: Profitability in Q1 was improved significantly compared to last year
Profitability in Q1 was improved significantly compared to last year BHG Group Home Improvement Value Home Premium Living -0.6m -9.2m 15.4m 6.5m +68.4 +35.3m +34.4m -5.4m -0.0% -0.9% 3.0% 1.3% +2.6 p.p. +2.8 p.p. +5.0 p.p. -1.1 p.p. Adjusted EBIT Q1 - SEKm 11
Slide 12: EBIT margin bridge 2023 Q1 – 2024 Q1
EBIT margin bridge 2023 Q1 2024 Q1 The improvement in Gross Margin was primarily driven by EBIT margin Q1 '23 -2,6% Home Improvement and Value Home, thanks to our efforts to normalise the margin structure Product margin Inventory handling Fulfilment costs improved as a result of cost initiatives a
Slide 13: Cash flow follows the normal seasonal pattern
Cash flow follows the normal seasonal pattern Negative development of working capital is a consequence Stable development in liquidity of BHG's seasonal profile Jan-Mar 2024 (SEKm) SEKm 50,1 (8.2) 370,3 (110.8) (152.7) 94.5 323,3 (30.7) Q4 2023 CF from CF to CF to Q1 2024 (110,8) Cash and operating
Slide 14: Extended financing agreement in place
Extended financing agreement in place Net debt Interest-bearing liabilities & Leverage 1,376.7m = 4 500 4.69x 4 000 EBITDAaL LTM 3 500 293.5m 3 000 2 500 We have extended our financing agreement 2 000 with our banks until May 2026 1 500 1 000 Total facilities reduced from SEK 3.3bn to SEK 2.3bn, whe
Slide 15: Summary
Summary The market is difficult, but fundamental drivers remains MARKET Macro has improved but we’re not seeing a clear effect on demand yet Our consolidation journey continues across our business units KEY FOCUS REMAINS We are executing several initiatives to improve efficiency Growth through inter
Slide 16: Invitation to our first Capital Markets Day on 14 May 2024
We’d like to invite you to join us to our very first Capital Markets Day on 14 May 2024 at Nordic Nest HQ in Kalmar, Sweden The Capital Markets Day will include presentations by CEO Gustaf Öhrn and CFO Jesper Flemme as well as in-depth presentations of the respective Group Business Units Participant
Slide 17: Q&A
Q&A 17