Bhg Group Ab · OMXSTO:BHG
Bhg Group Ab — Q2 2024 Earnings Presentation
15 slides from Bhg Group Ab's earnings presentation, Jul 18, 2024
Slide 1: Q2 Report 2024
Today’s presenters Gustaf Öhrn, CEO Jesper Flemme, CFO Q2 REPORT 2024 18 July 2024 1
Slide 2: Q2 2024 – Profitability growth despite market challenges
Q2 2024 – Profitability growth despite market challenges SALES EARNINGS CASH FLOW Cash flow from operating Net Sales (SEK) Adj. EBIT(SEK) activities (SEK) 99.1m 2,716m (+0.7 vs. LY) 328m Total: -22.0% 3.6% 169.9% Organic: -13.5% (+0.8 p.p. vs. LY) Growth EBIT-margin Cash conversion • For the third c
Slide 3: Macro climate has improved but market remains challenging throughout 2024
Macro climate has improved but our view that the market will be challenging throughout 2024 remains Several macro indicators have continued to improve sequentially last quarters. Most notably consumer confidence, renovation index and housing transactions However, above will have a delayed effect on
Slide 4: Strategic focus areas presented during the Capital Markets Day, 14 May 2024
Strategic focus areas presented during the Capital Markets Day, 14 May 2024 4
Slide 5: We have continued to execute on our focus areas during the quarter
We have continued to execute on our focus areas during the quarter GROWTH INITIATIVES CONSOLIDATION EFFICIENCY Focus on activities to drive Continued consolidation of our Reduced warehouse space with geographical expansion in Nordic DIY operations into a 18.000 square meters in Value Premium Living
Slide 6: We significantly reduced warehouse space and implemented a write down of inventory
We significantly reduced warehouse space and implemented a write down of inventory Peak Inventory Level – Q2 2022 As communicated on June 25, consolidations and decreased inventory have enabled us to reduce warehouse space significantly within Value Home 18.000 m2 has been reduced in Q2 17.000 m
Slide 7: We have updated our financial targets to reflect our strategic priorities
We have updated our financial targets to reflect our strategic priorities in a new market situation Net Sales Continue to deliver organic growth above the addressable market EBIT Return to an adjusted EBIT margin of 5%. Over time, further improve adjusted EBIT margin to 7% Capital structure Objectiv
Slide 8: We are prepared for when the market rebounds
We are prepared for when the market rebounds STRATEGICALLY STRUCTURALLY OPERATIONALLY FINANCIALLY Project Who we are Q1’24 Q2’24 We make living easy Olympia Customer centricity • Customer offer expansion Strategic priorities Sustainability • Simplify HOME VALUE HOME PREMIUM IMPROVEMENT LIVING Where
Slide 9: Growth impacted by continued challenging market
Growth impacted by continued challenging market BHG Group Home Improvement Value Home Premium Living Nordics: Nordics: Nordics: Nordics: -20% vs. LY -13% vs. LY -46% vs. LY 5% vs. LY Europe: Europe: 28% vs. LY 23% vs. LY Europe: Europe: 2,716m RoW: -33% vs. LY 1,551m 672m -51% vs. LY 511m RoW: -17%
Slide 10: Profitability improved from last year despite market challenges
Profitability improved from last year despite market challenges BHG Group Home Improvement Value Home Premium Living 99.1m 80.2m 28.6m 4.6m +0.7 vs. LY +21.6m vs. LY 15.4m -21.9m vs. LY 6.5m -4.5m vs. LY 3.6% 5.2% 4.2% +34.4m 0.9% -5.4m +0.8 p.p. vs. LY +1.9 p.p. vs. LY +0.3 p.p. vs. LY -1.0 p.p. vs
Slide 11: EBIT margin bridge 2023 Q2 – 2024 Q2
EBIT margin bridge 2023 Q2 2024 Q2 The weaker Gross Margin was primarily driven by the Adj. EBIT margin Q2 '23 2,8% Premium Living and Value Home business areas. We are pleased with the absolute margin in Value Home, but the Product margin current market made it difficult maintain last years prici
Slide 12: Cash flow follows the normal seasonal pattern
Cash flow follows the normal seasonal pattern Working capital was driven by BHG's seasonal profile as Stable development in liquidity well as our continued success in reducing inventory Apr-Jun 2024 (SEKm) SEKm 248.5 327,8 216.9 (25.8) (222.5) 370,3 (23.0) 338,8 102,2 Q4 2023 CF from CF to CF to Q2
Slide 13: Continued deleveraging
Continued deleveraging Net debt Interest-bearing liabilities & Cash 1,161.2m = 4 500 4.51x 4 000 EBITDAaL LTM 3 500 257.6m 3 000 2 500 We have extended our financing agreement 2 000 with our banks until May 2026 1 500 Total facilities reduced from SEK 3.3bn to SEK 1 000 2.3bn, where of SEK 0.8bn unu
Slide 14: Summary
Summary Market remains challenging, and we except to see a delayed effect from the positive macro improvements Our focus is to improve profitability through our key focus areas Growth, Consolidation and Efficiency In the second quarter we have continued consolidation in all business areas – Bygghemm
Slide 15: Q&A
Q&A 15