BHG Group AB (publ) (BHG) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hi and welcome. My name is Gustav Orn, CEO of BHG. I'm here together with Jesper Flemme, CFO, to present our Q1 report. We will also be available after the presentation to do our best to answer your questions. Slide two, please. We are happy to present the strong start of the year for BHG. In the last quarter of last year, we showed a small growth after a long period of declining sales. And now in the first quarter of 2025, we report a strong organic growth of 8% and all three business units showing growth versus previous year. Based on our available data points, we are confident that we have taken market share during the quarter. Earnings also continue to improve now with a six consecutive quarter of profitability improvements year on year. This quarter, all business units show improvements in earnings. In this quarter, the first quarter of the year, which is also the smallest quarter of the year, we see a positive development in earnings, going from a small loss last year to a significant improvement and reporting an adjusted EBIT of 21 million SEC on group level. The improvement in earnings comes primarily from top line growth and having direct selling costs and SG&A well in control, creating leverage from top line and improving profitability. We report a cash flow of minus 103 million SEK following the normal seasonal pattern in line with last year's cash flow. I would also like to mention that during the quarter, the outcome of the arbitration proceedings with IP Agency was announced. The arbitration was decided fully in accordance with BSG's claim. BSG to pay 2.5 million euros for the remaining 30% of the shares in IP Agency. This being far from the claim demand from the minority owners of 18 million euros. BHG has also received €4 million in contractual penalt...